With a kid on the way, Im looking into purchase term life insurance?

Are there any websites out there thats allow me to compare quotes from different insurance companies?

Id like to purchase a policy w/o a broker/middleman involved.

Me: 30 years old, Nonsmoker, plan to get at least 500k policy. Any idea on how much I should expect to pay.

Any tips/advice on what I should be watching for when purchasing term life? Thanks!

Term 4 Sale - someone else recommended them on the forum and I used them when I bought term.

Ohio National - they had the a good rating and the best price for the term / amount I desired.

"Shop Term based on Price" - but keep an eye out for quality hah.

mmy613 said:intresting new producr i just got through aig its called "return of premium term life insurance" its equivalant to term however after 30 years i all my premiums backPunctuation. It helps with the whole 'being able to communicate' thing....

ellory said:mmy613 said:intresting new producr i just got through aig its called "return of premium term life insurance" its equivalant to term however after 30 years i all my premiums backIt is not equivalent. Search this forum and you will see you were taken

Really I was taken??

I’m glad you think so, however when deciding on life insurance, I concluded that the additional premium that I am paying for the “return of premium” vs. “standard term” will net me 30 years from now the equivalent of an approximately 8% compounded return TAX FREE.

To me that is very good return on my investment.

Show me another company with a similar credit ratings that will guarantee 8% returns tax free.

EricGo07 said:mmy613 said:Show me another company with a similar credit ratings that will guarantee 8% returns tax free.Sorry, but you are violating two of the most important rules of money:

1. Don't flush common sense (along with your money) down the toilet. If the returns you mention are true, why would all the other investment choices exist ? E.g., why would bankers make mortgage loans ?

2. If it is too good to be true (more than double a CD), you are making someone else very happy -- at your expense.

What you are saying is that in theory it doesn’t make sense
I was skeptical to please help me by showing me where I went wrong

Pulling up a quote on insure.com for a 22 year old living in florida in the best of health for half a million dollars.

The best rate with an a++ company for:

30 year term is $33.69
30 year return of premium is 44.57

Total premiums for the return of premium is $16045.2 so after 30 years of paying 44,57 one would get back this amount TAX FREE

The difference is $10.88

Now 10.88 invested monthly at 8% with compounding interest after 30 years would be $16334.09

I apologize its not 8% its 7.912291%

mmy613 said:
What you are saying is that in theory it doesn’t make sense
I was skeptical to please help me by showing me where I went wrongI am saying that guaranteed 8% investment returns (after tax, no less !) do not exist. As to where the catch or the errant understanding lies, that is an interesting question. I am not sure, but here are a couple of thoughts --

1. The final premium quotes are different than what you have in hand. Either the ROP is higher, or the straight term is lower, or the small print is different. Perhaps AIG has set straight term at an uncompetitive rate, in order to make ROP look good.

2. Do you have any idea what the overall chance of not reaching end of term is ? I don't, but AIG sure does. 30 years is a long time, and any presumptions that you have of being obviously on one side of the median will be hard to justify.

I hope more knowledgeable people will post; in the meantime, common sense should prevail.

HappyGuy said:EricGo07 said:2. Do you have any idea what the overall chance of not reaching end of term is ? I don't, but AIG sure does. 30 years is a long time, and any presumptions that you have of being obviously on one side of the median will be hard to justify.Bingo! They factor in the possibility you stop paying on the policy. If you croak in year 29 they don't return the premiums to your estate.There is also that group of people who simply forget to cash in. I'm also reminded of how many times I have missed a payment on an automatic bill by a few weeks, when I switch a credit card to a different number due to fraud or loss. I wonder if that would be enough to lose the ROP benefit.

EricGo07 said:There is also that group of people who simply forget to cash in. .

A novel concept…. That we on FWF Benefit because of less savvy consumers.

EricGo07 said:mmy613 said:EricGo07 said:There is also that group of people who simply forget to cash in. .A novel concept…. That we on FWF Benefit because of less savvy consumers.Arrogance is bad for one's financial health. How sure can you be that in 30 years you will remember that the term policy has a ROP benefit ? Is there a window during which you have to apply for it ?

addendum: typo

I cant be sure but then why should I forget I know my bank account I know my investment etc (as well I get a monthly reminder for the next 30 years

I don’t know if there is a window of time or not however I would highly doubt that there is.

I do know that as of year 5 it starts creating a cash value that you can cash out at any time obviously not full RoP pr even close to 8% but never the less some cash value.