So you make $30-38k and are paying $3k/year for life insurance but your disability insurance only costs $18/month? I'm either going to call BS or say that your agent is not making suitable recommendations and/or has not explained to you the difference between group disability insurance (which it sounds like you have) and individual disability insurance (which you should have instead).
My Rep Says I Should Get More Term Coverage..
- Thread starter adamsmw6
- Start date
- 15,041
This sounds like a 20/20 annuity sting. Interesting the OP knew to assume we would all know what "NM" meant.
Seems like every time a "consumer" wants us to 2nd guess his agent it's always a "NM" agent. They must be the least trustworthy agents in the business.
Coincidence?
Sort of my thought. It is real easy to cast stones at an agent when you are getting his recommendations through a third party who may or may not have completely understood it to begin with.
200K WL at 26 for $2700/year does sound high unless OP is a smoker or table rated.
Term would be necessary to cover an immediate need, such as a mortgage, young children, or spouse. Also helps to guarantee insurability down the line. None of these apply to the OP so I really do not see the need for an additional term policy here.
Term would be necessary to cover an immediate need, such as a mortgage, young children, or spouse. Also helps to guarantee insurability down the line. None of these apply to the OP so I really do not see the need for an additional term policy here.
MEC for this hypothetical case study is over 4k / yr. Without knowing the type of WL and where the premium compares to MEC limit make these assumptions useless.
- Thread starter
- #15
I'm definitely a consumer and northwestern mutual is the company that I got a policy thru last June.
I'm not a smoker and I do not know what table rated means. When I met with him, he said I need it because its a good investment.. But after a year they have over 2500 of my money and my cash value is $9 ????
Is a savings account better?
No I do not have children or a real need for this I guess, but I didn't realize it at first..... I'm an easy sell, after looking at my budget I realize I'm paying a lot of money for something I can't access if I needed it.
What's a 20/20 sting?
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My policy is 2500 a year according to my documents and disability is around $18.... My policy is $224.
Northwestern says they are the best because they pay there policy holders stock? Or something like that.
I'm not a smoker and I do not know what table rated means. When I met with him, he said I need it because its a good investment.. But after a year they have over 2500 of my money and my cash value is $9 ????
Is a savings account better?
No I do not have children or a real need for this I guess, but I didn't realize it at first..... I'm an easy sell, after looking at my budget I realize I'm paying a lot of money for something I can't access if I needed it.
What's a 20/20 sting?
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My policy is 2500 a year according to my documents and disability is around $18.... My policy is $224.
Northwestern says they are the best because they pay there policy holders stock? Or something like that.
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A table rating is a substandard health risk class that requires an additional premium (such as standard rates + 50%). Life insurance is not an investment. Northwestern Mutual is not "the best" life insurance company because they pay dividends. Many agents would argue that NWM just sells overpriced products. Sounds like you have a disability waiver of premium rider on the life insurance policy, not actual disability insurance.
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- Thread starter
- #17
- Staff
- #18
usually it takes 10 to 15 years to break even on a wl......
- 285
Prestige value III w/api yr 6
Yep, I ran that myself out of curiosity. But that's about 63% of the total premium being API... most agents aren't going to sell one that thin.
