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Old 09-16-2010, 12:20 PM
 
7 posts, read 21,526 times
Reputation: 12

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I am a 37 year old single mother of a 6 and 13 yrs old. I currently have no savings and I am looking to purchase a 1,000,000 30 or 20 yrs term life insurance policy with Return of Premium. However, I am not sure if i am buying the right kind of policy. I currently have a 150,000 30 yrs term I bought a few years back because it was cheap. Now I am looking for something that will take care of the kids and payoff the mortgage. I was also considering a disability rider as well.
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Old 09-16-2010, 02:45 PM
 
Location: Vermont
5,439 posts, read 16,855,804 times
Reputation: 2651
i did not look at this that much but i have never heard of return of premium on a term life

might want to read this

Quick question on term life insurance

there is a discussion about publicly held companies vs mutual companies.... i ignored it and went through prudential
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Old 09-17-2010, 10:01 AM
 
Location: NJ
31,771 posts, read 40,672,588 times
Reputation: 24590
im shopping around also. i filled out some online things and now i get a million calls. im not going to talk to salespeople right off the bat. i emailed one of them and said what im interested in and asked to see the details in writing.
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Old 09-17-2010, 10:30 AM
 
Location: Tri-State Area
2,942 posts, read 6,005,152 times
Reputation: 1839
Easiest way to price it out...use term4sale dot com, it will provide you with a listing of three insurance agents and will also detail a list of companies and the annual premium they will charge for such a policy. Return of premium policy for that sum of coverage will cost double what pure straight term costs - a disability rider will increase the premium cost substantially.
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Old 09-17-2010, 10:42 AM
 
312 posts, read 1,163,725 times
Reputation: 169
This is a good article on types of life insurance policies.
Which Life Insurance Is Best? - Personal Finance - Insurance - SmartMoney.com

Personally I only have term life because the premiums are much cheaper. I think you should only consider whole life or return of premium life insurance if you need to use it as a savings mechanism. Otherwise you are simply giving the insurance companies a low or no interest loan.
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Old 09-17-2010, 10:53 AM
PDD
 
Location: The Sand Hills of NC
8,773 posts, read 18,379,327 times
Reputation: 12004
I had a disability insurance policy similar to Aflac and it saved us from possibly losing our house when I went on permanent disability. Disability plus SS disability paid us just enough so that we could pay all our bills plus a little extra.
It certainly saved the day for us.
I highly recommend disability ins.
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Old 09-20-2010, 08:00 AM
 
6 posts, read 8,015 times
Reputation: 15
I had a long talk with my agent about this a couple of weeks ago, he was great at explaining what I needed. Alec @ Holman and James LLC 4123232300
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Old 09-20-2010, 11:10 AM
 
14,780 posts, read 43,668,651 times
Reputation: 14622
You really should sit down with an agent and review the situation. There are a lot of options out there and everyone's situation is different. For me, the best choice was to go with regular term coverage for 30 years. You have to look at what your liabilities are and what would happen to your kids and make sure they are provided for. In general, regular term is the best option financially. Whole life is a poor investment and return of premium term is tempting, but you pay a lot more to give the insurance company a free loan. It would be better to save the difference yourself.
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Old 09-20-2010, 03:40 PM
 
Location: New Jersey
2,257 posts, read 5,185,759 times
Reputation: 1877
Quote:
Originally Posted by NJGOAT View Post
In general, regular term is the best option financially. Whole life is a poor investment and return of premium term is tempting, but you pay a lot more to give the insurance company a free loan. It would be better to save the difference yourself.
Right, if you are a disciplined investor (or think you could be one) you are much better off taking the term insurance w/o return of premium and investing the difference somewhere else yourself. when i compared the quotes, the return on premium was giving me about 4% return over 30 years. you could make far more than 4% at a lot more places AND have better access to your money without locking it for 30 years. the only person who would be happy with your return on premium policy will be your insurance agent as he earns significantly more.
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Old 09-20-2010, 04:50 PM
 
Location: Piscataway
279 posts, read 1,086,138 times
Reputation: 92
You would not be locking the money in for 30 yrs. You would have access to the dividends to cash out whenever or could borrow from the guaranteed cash value.
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