Hi all
About to sign up for term life, was hoping to run the specifics by the community to see if everything sounds good/if I've missed anything.
Currently 25yo, plan is term to 80yo (so a 55y plan) with increasing premiums. Classification is "premier non-tobacco premium", which I am told is the highest grade possible. Contract value is USD 650k, with "scheduled" premiums starting at $365 annually, climbing to $500 in 15 years and about $2000 in 30 years from now. However, the "maximum" premium eventually gets to 4x to 6x of the "scheduled". There is also the option to convert the policy to whole life (as a savings vehicle) anytime from inception to 35 years from now i.e. when I am 60yo.
A few questions I was hoping to get help with:
- If my main aim is to provide for my children in case I die while they are still dependents (so I pretty much need a 30y plan), is this the best setup for me? I inquired into a 30y plan and was told the premiums on those would be bigger than on the 55y, and that I could essentially start out with the 55y and stop paying after 30 years if I so chose, which would be a better deal than doing just the 30y plan.
- Do the premiums sound reasonable? How much do I have to worry about the company increasing the premiums on me? I know reality can often deviate sharply from "schedules".
- Any other things you think would be good for me to consider? Happy to provide more info if helpful.
Thanks all, would appreciate any help.
About to sign up for term life, was hoping to run the specifics by the community to see if everything sounds good/if I've missed anything.
Currently 25yo, plan is term to 80yo (so a 55y plan) with increasing premiums. Classification is "premier non-tobacco premium", which I am told is the highest grade possible. Contract value is USD 650k, with "scheduled" premiums starting at $365 annually, climbing to $500 in 15 years and about $2000 in 30 years from now. However, the "maximum" premium eventually gets to 4x to 6x of the "scheduled". There is also the option to convert the policy to whole life (as a savings vehicle) anytime from inception to 35 years from now i.e. when I am 60yo.
A few questions I was hoping to get help with:
- If my main aim is to provide for my children in case I die while they are still dependents (so I pretty much need a 30y plan), is this the best setup for me? I inquired into a 30y plan and was told the premiums on those would be bigger than on the 55y, and that I could essentially start out with the 55y and stop paying after 30 years if I so chose, which would be a better deal than doing just the 30y plan.
- Do the premiums sound reasonable? How much do I have to worry about the company increasing the premiums on me? I know reality can often deviate sharply from "schedules".
- Any other things you think would be good for me to consider? Happy to provide more info if helpful.
Thanks all, would appreciate any help.
