General Question

limeaide's avatar

Anyone know any societies or clubs I could join to get discounted life insurance premiums?

Asked by limeaide (1906 points ) August 20th, 2009

I’d like to get term insurance, not whole life. I work as a Network Administrator. I live in Indiana. I’m a husband and parent. I’m not quite sure what else to include, if any other details would be applicable please let me know. Thanks!

Observing members: 0 Composing members: 0

11 Answers

IchtheosaurusRex's avatar

If you are old enough, you can join the AARP. Minimum age is 50. Some lodges, like the Elks probably offer it, but the fact is that term life insurance is a pretty competitive business, and if you shop around for rates, you can probably find one that is suitable. The rates are lowest for nonsmokers under age 40, especially if you’re buying insurance with a short level-premium period, say, 10 years. If you are a 35-year-old nonsmoking male, the company I work for has a 10-year level premium term policy that will cost you $400 a year for $500,000 in coverage. I know we don’t have the most competitive rates around, either, so you can probably get it for less.

limeaide's avatar

@IchtheosaurusRex Thanks for the info. I am 31, male. My mother died young at 52 from heart disease. I smoked, but quit about 4 years ago. My children are young and would like to have atleast a 20 year term policy.

IchtheosaurusRex's avatar

From my company, a $500,000 20-year level term policy would run you $530/yr. 4 years tobacco free would qualify you for nonsmoker rates with most companies. Let’s say the underwriters are worried about your family history (they probably won’t be), and put a 1A rating on you. That would up your premium to $645/yr. Still affordable. Like I said, shop around for rates. Don’t let anybody talk you into Universal Life; it’s a ripoff. If you want permanent insurance, get a Whole Life policy instead.

limeaide's avatar

@IchtheosaurusRex Thanks for the info! You made me think of another variable I was thinking about getting $600,000 policy. You don’t need to do the additional calculations you’ve already helped tremendously, but if you’d like to that would also be great!

IchtheosaurusRex's avatar

$620/year, or $758 with a rating. Still got the screen up. Unfortunately, I can’t tell you the name of my company or one of our agents without violating a whole bunch of regulations, but I can at least give you an idea of what your costs might be.

limeaide's avatar

@IchtheosaurusRex Thank you for all of your help!!!

YARNLADY's avatar

AAA Auto club has discounted life insurance for members.

limeaide's avatar

@YARNLADY do you have idea of the % of savings?

@IchtheosaurusRex

BTW – I just found out about annual renewable term insurance, it seems like the cheapest option, any reason to rule this option out?

YARNLADY's avatar

@limeaide It all depends on what you compare it to. There are so many different ways to buy insurance it is very difficult to compare them. The best you can do is check out each one and see what they offer and what the premium is.

Hubby and I have a 10 year policy, which was the lowest price option for us over time.

IchtheosaurusRex's avatar

@limeaide , ART is inexpensive at first, but the premiums increase over time. Some plans have a level premium for a certain number of years, and are renewable after that; the plans my company offers are like that. You can renew annually until age 99 if you want to, but the premiums get bigger and bigger. For example, you could buy a $500,000 10-year level term policy from my company for $375/yr, but at age 42, after the level period ends, the renewal premium would be $2450. It just goes up from there, to over $12,000 annually at age 60. However, the terms of renewal don’t require any underwriting, so you would be able to renew the policy even if you had terminal cancer. No way could you go out and buy a new life insurance policy under those conditions.

Most people end up better off with longer-term level premium plans. However, ART is a good choice if your needs are temporary. For example, if you are doing contract work and you don’t have an employer-sponsored life insurance plan.

limeaide's avatar

@IchtheosaurusRex Thank you, you have been more than helpful! Lots of food for thought for my wife and I. My initial thought is to get the annual renewable until I get out of debt and then lock myself into a longer term, but with your insights I may need to reconsider. Thanks again!

Answer this question

Login

or

Join

to answer.

This question is in the General Section. Responses must be helpful and on-topic.

Your answer will be saved while you login or join.

Have a question? Ask Fluther!

What do you know more about?
or
Knowledge Networking @ Fluther