I am looking for $650,000/20 year term life. I'm 48/married in perfect health. Through Select Quote, the agent quoted $98.67/mo from Banner or AG. A local Northwestern Mutual agent quoted $122.37/mo. Can an expert out there help me understand why would NM be significantly more than Banner for the same coverage???
Why is NM More Expensive Than Banner (Legal/General)?
- Thread starter livelong
- Start date
- 11,996
I'm not sure what you're looking for here. With term products different carriers are more competitive than others in given situations. Some carriers have looser underwriting with different ages/conditions/etc, but apples to apples some companies do just charge more for their coverage.
Some other questions that may be of concern for you which could be different (but likely aren't) would be conversion options and other riders. Both are probably renewable and convertible, but it may be worth asking.
Part of the value in working with an agent, aside from price, is getting a feel for what's the best fit in your situation. Why as a 48 year old you're looking for a $650k 20 year term is something I'm unclear on, but we did just meet on the internet and I don't even know what state you're in. If I were in your situation I would probably be more interested in looking at a UL type product or at least something with a good conversion option.
If you really want to have fun comparing prices you should check out Term4Sale - Instant Term Life Insurance Comparisons.
Some other questions that may be of concern for you which could be different (but likely aren't) would be conversion options and other riders. Both are probably renewable and convertible, but it may be worth asking.
Part of the value in working with an agent, aside from price, is getting a feel for what's the best fit in your situation. Why as a 48 year old you're looking for a $650k 20 year term is something I'm unclear on, but we did just meet on the internet and I don't even know what state you're in. If I were in your situation I would probably be more interested in looking at a UL type product or at least something with a good conversion option.
If you really want to have fun comparing prices you should check out Term4Sale - Instant Term Life Insurance Comparisons.
- 25,037
Ohio National starts at $87.45/$89.14, Midland starts at $87.91 Both have better conversion options in my opinion. It is just the what they charge.
I do not write them, However, my understanding is they really do not want the term business other than for future conversions.
I had my filter set at 41 quotes and did not come up with $122.37
BTW, There is much more that goes into a true quote than age and sex.
Lee
Because NWM's products are generally more expensive than competing companies. It's term life insurance, you don't get anything extra by paying more for it.
Looking at the rates, it appears you are within 6 months of your 49th birthday. At current age 48/nearest age 49, I show there are several companies with slightly lower rates than Banner, and a ton of companies with rates lower than NWM.
Also, use an independent agent, not Select Quote.
Looking at the rates, it appears you are within 6 months of your 49th birthday. At current age 48/nearest age 49, I show there are several companies with slightly lower rates than Banner, and a ton of companies with rates lower than NWM.
Also, use an independent agent, not Select Quote.
- 25,037
Josh makes a good point on the cost of riders. Company Q could be the lowest monthly premium till you add Disability Waiver or Child Riders then it should flip to company A. Talk to an Independent agent.
Playing with the numbers looks like $1,000,000.00 is a better deal at $128.W/SBLIC
Again, these are just numbers till someone does a prequalifying fact find. Before that it is just guys jockeying to be that guy.
Lee
Playing with the numbers looks like $1,000,000.00 is a better deal at $128.W/SBLIC
Again, these are just numbers till someone does a prequalifying fact find. Before that it is just guys jockeying to be that guy.
Lee
- Thread starter
- #6
Thanks for all the replies, very much appreciated. There are no riders on the policy quotes for either - just their basic level term.
I think dgoldenz has best rationale - NM is just expensive.
NM appears to be a pretty big company and probably has higher overhead.
Thanks also for the advice to see independent insurance agent.
I think dgoldenz has best rationale - NM is just expensive.
NM appears to be a pretty big company and probably has higher overhead.
Thanks also for the advice to see independent insurance agent.
- 25,037
Dave knows his stuff. He would be a great resource.
I just wrote a blog post reviewing Northwestern LTCi today. It basically is the highest priced LTC policy on the street. For no other reason than it is more profitable for NWML to be more expensive, really. The policy is ordinary.
Review of Northwestern Mutual Long Term Care Insurance - LTC Partner
Jack Lenenberg
Review of Northwestern Mutual Long Term Care Insurance - LTC Partner
Jack Lenenberg
- 1,405
Question for you:
Which company's name do you know better, NML or Banner?
I suspect NML.
That's called brand name recognition.
When you go down to your grocery store, and buy food, have you noticed that brand name foods cost more money than "no name" foods. If you do some research, you will often find that the company making the "no name" food is the same brand name company. Why the difference in price? Because some people would rather pay more for the brand name.
There is nothing wrong paying more for a product, if the product/company is providing more than the company charging less. But in fairness, if you buy 20 year term from Company A, versus 20 year term from Company B, there isn't much difference if they both pay their death benefits promptly, and don't mess up taking your money for the policy.
