Purchasing Life Insurance with Possibly Converting

Discussion in 'Life Insurance Forum' started by SFGiants650, Jul 16, 2017.

  1. SFGiants650
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    SFGiants650 New Member

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    I'm a newbie, and going to purchase life insurance through North Western Mutual. I plan on getting a 20 year term (either a 500k, or $1,000,000 policy)but thought about getting the 90 life and wanted some advice.

    Is it cheaper to stick with 90 life? If so, would my premiums still be the same throughout the age of 90?
     
  2. Mattschmidt
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    Mattschmidt Guru

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    first question, why Northwestern Mutual?

    And what exactly are your financial objectives? Do you just need term today?

    Or would you maybe benefit from a term policy, and a permanent policy???

    You mention the word cheaper. Cheaper isn't better when it comes to Life Insurance
     
  3. regularAgent
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    regularAgent Expert

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  4. kpbdy99
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    kpbdy99 Expert

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    Do you just want to pay more, or is there some other reason you're using Northwestern Mutual for term coverage?
     
  5. jboussea
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    jboussea Guru

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    he said it.. he wants to convert to a NW MUtual permanent coverage.. maybe there's something he likes about their WL coverage.
     
  6. aclaro
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    aclaro Super Genius

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    Maybe he likes how poorly their dividend performance is lately. Or more likely he's being sold by a NW agent and he doesn't know any better.
     
  7. jboussea
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    jboussea Guru

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    Of course that is probably what's happening.. but it's not like it's that bad.. .Northwestern current dividend rate is low but it was up there for years, at some point thta could be Mass' or Penn's turn to have a low dividend rate.. NW is not the best out there but that doesn't make them bad.
     
  8. SFGiants650
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    SFGiants650 New Member

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    Well, i read a lot of positive reviews about them. I talked to some people who said their prices are not all that competitive. I read a lot of negative reviews on other insurance companies and those are the ones I want to avoid.

    I tried to get insured through Banner Life, but I got rejected cause of my Chron's disease.

    Financial objective is to get protection for my family in case something happens to me later down the line. I never thought about getting life insurance, but one of my brothers recently passed away in April, so it got me thinking of getting it, especially since I have Chron's.

    Term is fine for right now, but there's that chance of outliving the policy having to renew would cost me a lot more.

    I should say affordable, rather than cheaper, but seems like neither of those words apply to them, LOL.

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    I am 37 years old; turning 38 in December

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    No, I'm not looking to pay more, but sometimes having that extra protection may help.

    Yeah, term is what I am looking at, but as I posted to the last person, there is that chance of outliving the policy and renewing will cost more as I get older.

    Here is the illustration the agent sent me, so it will give you a good idea:

    For example, a 20 year term at 500K will cost about 657 annually (assuming that price is still in tact)

    20 year, 1,000,000 term would cost nearly 1,200 annually

    90 life, would cost me a little over 1,600 annually.

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    I'm not focused on the dividend. I agree their prices are not the greatest, but when that time comes if something happens, they are good with honoring claims. SOme companies out there play BS games with people and either refuse or deny claims, which is why i chose NWM cause they don't seem the type of company to mess around like that.

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    I read a lot of negative feedback about whole life. If i chose whole life, it's not because I want to build cash value, but having it secured till the day i die. Goal right now is to get term insurance. I was thinking of converting to 90 life, but I am not sure if my annual payments will stay the same, or go up after the 20 year term. The illustration he sent me for 90 life would cost over 1600 a year, but that may not be the price after going through the whole medical exam process.

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    Everyone has their opinions about what is the best out there. I read a lot of negative feedback about other companies . I thought AIG was one of the best but I remembered they were one of those companies that got a huge bailout 10 years ago. Plus, I went through Zander Insurance, and their prices was much higher. The quote the guy ran was 4,000 annually; 5,000 annually for Pacific Life.
     
  9. jboussea
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    jboussea Guru

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    how's your Chrohn's? .. I have UC so I know the struggle. got hospitalized right when I was trying to add more coverage for my family.

    So you 're just looking for converting just in case your chohn's get back when you term is about to run out.

    If that's the case .. I would look at the company that gives you the best rate for your condition. it's funny you mention AIG and i think they're one of the ones that are a little more lenient on Crohn's.

    AIG is holding company that also has insurance. That whole debacle with AIG had nothing to do with their life insurance business although there's a lot of noise about it. By law, the reserve for he life insurance business could not be touched by the Credit default swap shenanigans. With that said, I can understand why someone would rather do business elsewhere.

    You'd be hard pressed finding a life insurance company not paying claims. it's one thing to have excuses when someone is disabled.. but when someone dies .. they're dead .. there is no debating that.

    FYI.. buying insurance from Zander is a dead giveaway that you read a lot of negative feedback about whole life.
     
  10. DHK
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    None of this matters until you have an offer of coverage by the insurance company. You've already been declined once, and this affects your medical records and other insurance companies will also notice.

    Generally, companies may give more favorable underwriting decisions for permanent insurance than term. This is because of the growing cash reserves that helps to lower their risk.

    Apply for something and get your coverage. What type... is secondary at this point.

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    Btw, please tell me that you were quoted at least at a STANDARD underwriting class, right?

    If you've been quoted anything "preferred" prior to a medical exam, then you should be prepared to pay more for the coverage you are considering.
     
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