Life Insurance and taxes

[sman]

David,

You really should shop around for rates. Visit www.term4sale.com. They don't sell insurance. They sell comparison software to agents. The comparison os from more than 100 carriers. It will list the top 50 for your situation. I think you'll find many with MUCH lower rates than State Farm.

 

[NHB_MMA]

I just ran a search out of curiosity for 30 year term using a zip code in PA for David's wife with an age of 26 and came up with ranges between $21 and $31 per month. There were only a couple at $21 and most were more towards the $27 that State Farm would charge. For David himself, there were a few towards the $21 end, but the high-end was a dollar more at $32. I used a preferred rating, because he said they're in good health, but didn't assume a preferred plus rating.

David, you can go cheaper than the $27, but not by leaps and bounds. And most of the those companies aren't of the size and A++ rating of State Farm, although they're probably all pretty good. The $27 per month seems like a pretty reasonable rate for the coverage. The bottom line is if you really like your State Farm agent and feel he's helpful, I would probably give him the business. That is what I would do, not what everyone would do. The way I look at it is I like to give business to people I enjoy doing business with. Price is one consideration when buying insurance, albeit an important one.

Just giving you my thoughts. Hope the thread has helped.

 

[NHB_MMA]

and were are these state farm rates....good PC co.......but not a good life insurance co.......

STI, what makes you say that?

The only concern I personally would have is that I would not buy a permanent policy from most P&C companies, because a couple Hurricane Katrinas could put a serious financial strain on them. However, I think SF is large enough to pretty much handle most anything foreseeable.

 

[STIBROKER]

and were are these state farm rates....good PC co.......but not a good life insurance co.......

STI, what makes you say that?

The only concern I personally would have is that I would not buy a permanent policy from most P&C companies, because a couple Hurricane Katrinas could put a serious financial strain on them. However, I think SF is large enough to pretty much handle most anything foreseeable.

well here in texas all the rates I have come across and replaced are high and why put the P&C factor in your life plan...if you what life insurance go to a life co.....if you want health insurance go to a health co.....ect....

 

[James]

Maybe his quote is a loyalty discount offer by State Farm? I'm thinking that they have loyalty discounts, if so he may also see a discount on his PC Policy (Home and Auto) along with his life policy. Not sure though, but I know AIG has loyalty discounts and I'm pretty sure State Farm does, at least according to their commercials.

 

[insuremojo]

and were are these state farm rates....good PC co.......but not a good life insurance co.......

STI, what makes you say that?

The only concern I personally would have is that I would not buy a permanent policy from most P&C companies, because a couple Hurricane Katrinas could put a serious financial strain on them. However, I think SF is large enough to pretty much handle most anything foreseeable.

well here in texas all the rates I have come across and replaced are high and why put the P&C factor in your life plan...if you what life insurance go to a life co.....if you want health insurance go to a health co.....ect....

It surprises me that you say this stibroker. This is not necessarily true. I have clients that have excellent policys for auto, home, life, and health all with the same company. They are the exceptions to the rule and are the most loyal clients.

 

[NHB_MMA]

well here in texas all the rates I have come across and replaced are high and why put the P&C factor in your life plan...if you what life insurance go to a life co.....if you want health insurance go to a health co.....ect....

So you're basically saying the same thing with the Hurricane Katrina example? I don't like the idea of something that I'm counting on growing, via dividends, to be in the general account with the natural disasters factor. However, as I said, SF is such a huge company with top ratings and I would think they can handle most anything thrown their way. It would not be as much of a concern.

As for the rates, no one wants to pay an unreasonable premium for his coverage, but most of the PA examples I ran were not much cheaper than SF. If it comes down to several companies a couple bucks cheaper, the $27 with SF, and a few that are higher, I'm probably going with SF if I've had good experiences with my agent and the company. If we're talking $20, $30 or more per month, then I'd be talking a hard look elsewhere, but not for a few bucks.

 

[DavidIQ]

Just giving you my thoughts. Hope the thread has helped.

You BET it's helped. I'll be reviewing this whole thread with my wife and making a decision. Thanks guys and gals!

BTW we're in Florida.

 

[NHB_MMA]

You BET it's helped. I'll be reviewing this whole thread with my wife and making a decision. Thanks guys and gals!

BTW we're in Florida.

Cool. The link sman provided you should enable you to see if your SF rate is reasonable in your state, and where you might go if you feel it is not.

Good luck.

 

[L5tc]

P&C and Life Insurance Co's

so you know for a fact that if a big P&C liability hits one of these P&C co's that the reserve for paying life policies is in fact in jeopordy and a life claim might not be paid? And that there's no reinsurance co involved, does anyone know which co uses re and who doesn't?

My point is, yes, I would buy my life insurance from a company that probably doesn't do P&C but so much here is rhetoric and bias from the marketing depts of mutual co's in particular. this whole issue drives me nuts because my personal feeling if not for sarbanes oxley these mutual companies who scare the sh*t out people saying they're the only ones who pay claims would go public in a heartbeat. I know, I know, the policy holders would have to vote - so the company goes public and the policy holders are offered a huge bump of cash or stock into the policies and they'll say no?