Some policies offered on a group basis (through an employer) are portable, but they HAVE to be converted to one of those horrible, nasty, “nobody ever wants it” Cash Value policies.

Check all of the portability clauses on group insurance before deciding that this is the only insurance you plan on carrying for your family.

One of the reasons I recommend that people talk with a local INDEPENDENT agent or financial planner about insurance. Aside from being greedy scumbags concerned only with commission, they also know how to calculate needs, and have access to the exact same quotes that are available on the internet (Selectquote, Netquote, etc.). I recommend that the consumer use these resources to have an idea about what a policy will cost before going to see a local agent. Keep in mind that the quotes from the internet are more than likely going to use the best possible rating, so they may seem cheaper, but the agent will ask some underwriting questions that will give him/her a better idea of what rating will actually be issued by the insurance company.

As far as the Dave Ramsey’s/Susie Orman’s of the world. They have good things to say for the most part, but they are entertainers first and foremost. Anytime some speaks in extremes (never buy whole life) you should take what they are saying with a grain of salt. The same goes for financial advisers that speak in extremes (always buy Whole Life).

Often these are rated at the top of the industry, rates are good, and returns are a bit higher. They tend to be more conservative in outlook, and don’t offer a lot of gimmicky products.

They are like the “credit unions” of the life insurance industry. They are only accountable to their memberships, not outside investors.

Dividends that they offer can be used to pay down premiums, often after just a couple of years. One upside of more expensive “whole life” style policies with fraternal insurance companies is that the dividends soon outweight the premiums, and can shift your insurance cost to $0 for a growing asset.

Not geared entirely to you, I have read others saying the same thing.

Two things to consider:

1) You mention that you don’t “need” life insurance– you’re right you don’t need it– your family does. If you didn’t come home alive tonight– could your family use say $250,000 tax free if you aren’t alive?

2) Are you a gambling man? You are assuming that you will remain insurable a few years from now? What if you are not insurable in a few years?

We used Accuquote for my hubby since USAA seemed pricey.We saved $20/month that way.

You can usually save by having it auto deducted from a checking account or credit card (good way to keep your credit card active).

You should consider buying before you are 30 even if the kiddos haven’t arrived yet, your cost goes up at age 30.

If I were you, I’d bite the bullet and get the insurance NOW intead of waiting a year or two. You might get hit by a bus next week.

The medical part really isn’t that bad. We have Northwestern Mutual, and they send a nurse to your house at a time that is convenient to you. Even nights and weekends. Blood draw, urine sample, blood pressure, and a chat about family medical history.

I’d also recommend periodically reviewing the amount of coverage as your life changes.

I don’t need the benefits of life insurance coverage for several years (read ~5). Does it make sense to pay for it now anyway?
What do you do when the policy ends earlier (because you bought early) and you are still alive, do you purchase again at an even higher rate?

I am in the same boat as Jim (28, married, no kids) and not planning on buying life insurance yet. Does it make any sense at all to wait? Converting this to a math problem: The cost over the next 5 years of insurance i don’t need (~$3k) vs. the additional cost if i buy a policy 5 years from now ($??)

But you need to know these numbers so you can make decisions. I don’t think 8% annualized growth over 30 years is unreasonable, especially when you believe the market is in a depressed state right now. If the numbers said you needed 20% annualized growth over 30 years to breakeven, then you know clearly what the right answer is. 8% isn’t outlandish, but 20% probably is.

I tend to disagree with your quotes “While appealing, would I be better served taking the $34 difference in premiums a month ($76 – $42, TransAmerica) and investing it? After 30 years, assuming 8% annual growth and $408 in annual contributions, the investment would yield over $46,200. Cut away 25% for Uncle Sam, and you end up with $34,650, which puts you ahead of the premium life insurance plan and you retain control of your money.”

Although theoretically if your investment earns 8% annual growth you would come out ahead but you can also make losses with your investment and not see the money at all. wouldn’t ROP policies a better safe investement. Besides where do you get a guaranteed 8% returns these days. I would like to know if there is such an investment.

TJ Shah