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Reply to T30 to T80? Good or Bad Idea?     
Old 04-10-2010, 02:24 PM   #1
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T30 to T80? Good or Bad Idea? T30 to T80? Good or Bad Idea?
I currently have Midland National T-30 Life Insurance Policy ($250k) for about $28 / month, fixed for the life of the policy. I'm currently finishing my undergraduate degree in the next year and my wife and I recently had a son. I was approached by a NWM insurance agent, who showed me this T-80 policy that was for $500k and is the same amount per month, but is not a fixed monthly price for the life of the policy (it's more the same price per year, but the rates go higher after the 2nd year).

I'm really only mainly concerned with switching my policy since it's double the amount, it's the same per month (on a somewhat fixed budget while in school full time and working full time), and if something were to happen to me while I'm in school still, my wife could pay off any of my/our school debt as well as be sure that she and my son are taken care of. I really only plan on keeping the policy for the duration of my school and then once I get a job and relocate, to get a higher, T30 policy again, and just terminate the NWM policy.

Since, the in's and out's of life insurance are complicated, and I want to try and be sure that I'm not making a bad move here by doing this, or overlooking something, I'd appreciate any advice/opinions that anyone in this forum has.

Thanks.
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Old 04-10-2010, 05:23 PM   #2
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Newby on T30 to T80? Good or Bad Idea? - Insurance Forum
 
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea?
I would go to the website Term4Sale.com - Term life insurance comparisons (over 100 companies) and look up what 20 year level term is for you.
Then find a local agent (3 are listed on the website) and let him advise you on the specific choices.
I would stay away from any agent who sells for a captive company. That includes Northwestern Mutual.
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Old 04-11-2010, 11:18 AM   #3
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea? Seus is the thread starter for: T30 to T80? Good or Bad Idea?

Well I looked it all up, and see that I can get a 30 year fixed for $500k for what I'm paying now...I can understand why I should not go with a captive agent, as then I'm basically only getting whatever products they feel like they want to push...

I guess I just don't know the reasons to def. steer clear from this T80, other than the fact that its pricing increases every year. Is there anything that I could possibly be overlooking?
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Old 04-11-2010, 11:37 AM   #4
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea?
Originally Posted by Seus View Post
Well I looked it all up, and see that I can get a 30 year fixed for $500k for what I'm paying now...I can understand why I should not go with a captive agent, as then I'm basically only getting whatever products they feel like they want to push...

I guess I just don't know the reasons to def. steer clear from this T80, other than the fact that its pricing increases every year. Is there anything that I could possibly be overlooking?
If your health changes between now and then you may not be able to get more coverage, and then you're stuck paying for annual renewable term insurance that gets incredibly expensive after the first few years. For $28/month, stick with what you have and don't overthink it. When you get out of school, re-evaluate what you need and go from there.

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Old 04-11-2010, 11:44 AM   #5
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WinoBlues on T30 to T80? Good or Bad Idea? - Insurance Forum
 
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea?
If the t80 increases every year. That is a huge issue. I know that you intend to only keep a new policy for a few years then move back to t-30 type policy. However, life has a way of changing things.

If the 30 yr term and the NWM t80 are the same cost now. The t80 goes up in twelve months and then goes up every year there after. The 30 year plan is the wiser choice. As insurance is covering the what ifs. In this case what if life does not go as planned and you are not able to switch back to your old policy type. Run the numbers for 5 years and at 10 years. Also what type of policies do the two companies have for conversion.

Suggestion: post your stats and get some quotes for GUL or GUL/term combos. That may take care of your desire for a long term policy and higher current face amount.

BTW- Are you sure your Midland "T -30" if a lifetime fixed rate?

Originally Posted by Seus View Post
Well I looked it all up, and see that I can get a 30 year fixed for $500k for what I'm paying now...I can understand why I should not go with a captive agent, as then I'm basically only getting whatever products they feel like they want to push...

I guess I just don't know the reasons to def. steer clear from this T80, other than the fact that its pricing increases every year. Is there anything that I could possibly be overlooking?


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Last edited by WinoBlues; 04-11-2010 at 11:47 AM. Reason: left out a word
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Old 04-11-2010, 12:18 PM   #6
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Newby on T30 to T80? Good or Bad Idea? - Insurance Forum
 
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea?
Originally Posted by Seus View Post
Well I looked it all up, and see that I can get a 30 year fixed for $500k for what I'm paying now...I can understand why I should not go with a captive agent, as then I'm basically only getting whatever products they feel like they want to push...

I guess I just don't know the reasons to def. steer clear from this T80, other than the fact that its pricing increases every year. Is there anything that I could possibly be overlooking?
If you are willing to pay the same amount for a 1-year rate lock policy as you would for a 30-year rate lock, then I would have to say that you are an ideal fit for NorthWestern Mutual.
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Old 04-11-2010, 12:38 PM   #7
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea?
Your right in wanting the most coverage for you money, but sacrificing premium stability is not the way to achieve higher coverage.
The increasing premium policy is not a good idea at all.


Tell us more info and we can give you a better analysis. How old are you? In good health? Smoker or non smoker?

Also dont discount life insurance on your wife too. If she isnt around anymore you will be at an economic loss having to pay for childcare and other incidentals of her not being there to care for the child. And if she is working too, it makes coverage for her even more important.

If your looking at reevaluating your financial situation once out of school, id suggest a ten year term, it will maximize the death benefit for the money.

A 30 year old non smoker in decent health can get a $500K ten year term for $20/month....

Any way you go, dont go with a captive agent, find an independent agent who can shop your situation with multiple carriers to give you the best value.
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Old 04-11-2010, 12:58 PM   #8
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WinoBlues on T30 to T80? Good or Bad Idea? - Insurance Forum
 
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea?
Originally Posted by Newby View Post
If you are willing to pay the same amount for a 1-year rate lock policy as you would for a 30-year rate lock, then I would have to say that you are an ideal fit for NorthWestern Mutual.
Thanks for the chuckle.
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Last edited by WinoBlues; 04-11-2010 at 04:56 PM.
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Old 04-11-2010, 02:58 PM   #9
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Norwayguy on T30 to T80? Good or Bad Idea? - Insurance Forum
 
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea?
Originally Posted by Seus View Post
Well I looked it all up, and see that I can get a 30 year fixed for $500k for what I'm paying now...I can understand why I should not go with a captive agent, as then I'm basically only getting whatever products they feel like they want to push...

I guess I just don't know the reasons to def. steer clear from this T80, other than the fact that its pricing increases every year. Is there anything that I could possibly be overlooking?
Also you should know that even though the policy you looked at is a 20 or 30 year level term most policies are also renewable until age 90-95 so if the reason your thinking about NWM is that he calls it a t-80 policy its most likely an annual renewable term policy that will keep increasing in cost....He probably mentioned converting to a perm product as well and you should be aware most policies will also allow you to convert guaranteed during some period of the policy....wether the term carriers perm product is any good or not is why you might want to look up a reputable local independent agent who can explain your choices and help steer to the right product for you.

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Old 04-11-2010, 10:56 PM   #10
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NMFNMDRT on T30 to T80? Good or Bad Idea? - Insurance Forum
 
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T30 to T80? Good or Bad Idea? Re: T30 to T80? Good or Bad Idea?
Find out what kind of conversion options are on the 30 year level before you make a decision. Northwestern's t80 is convertible to age 60, so you have a lot of time. Also, see what a "minimum mix" Adjustable comp life policy looks like with Northwestern. It is a form of whole life that has a much cheaper cost. It's also very flexible. See if that fits your situations for the long term instead of renewing term policies into your 60's and 70's.
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