How to save money on Term Life Insurance | Personal Finance | Financial Literacy | Money
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- Опубликовано: 16 сен 2024
- First term pricing is based on you having proved you were insurable (through the underwriting process). But subsequent terms are priced assuming a certain percentage of being will have become unhealthy or uninsurable by then. Higher risk = higher cost. If you can re-qualify as healthy, you'll save BIG.
Life Insurance is not widely covered in the personal finance world. In this video, I'm going to share with you something that is well known by insurance professionals and not well known by consumers in general. Term Life Insurance is often the cheapest type of insurance you can buy, but over time the cost can get really high. One way to control the costs is to continually prove that you are less of a life insurance risk - i.e. keep getting regular medical assessments by applying for a new policy before the second term kicks in. You might be surprised just how much you can save.
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What is life insurance? Whole life insurance, Preet Banerjee, personal finance, term life insurance, underwriting, term vs whole life,
Excellent video!!! Very practical and good strategy. Thank you!!!
keep up the great videos Preet! You need to release them more frequently :) The green bean coffee video has saved me so much $
I never knew that. Thanks for educating us on things a lot of us never learned. I bought a permanent insurance for 100k coverage when I was in my 20s and then got a term for 500k to enough to cover my home. I decided on this as I am married and will not be having children.
Way to go Preet on talking about conversion. It's so important and rarely talked about.
WRT to the 10 year term renewal premium jumps, the ideal way to fix this is to just by a term 20 upfront - that way you get the select underwriting table for the full 20 years (as opposed to the 10 years select/10 years ultimate you get on a term 10). The term 20 avoids both the premium increase or the medical exam in year 10.
Great advice, Glenn!
Wow!! Well explained and great way of perspective to show the importance of getting life insurance now rather than later! New subscriber here!!
Very interesting information
I have a life insurance policy that, honestly, I got mostly because my parents have a friend that sells it. All they said was to get it while I am young and healthy, and since my birthday was coming up, there was pressure to sign the policy before the cost went up. So, now I am paying $280/month as a 26yo healthy, non-smoking male, and I feel like a sucker tbh. On the bright side, apparently I only have to pay it for 10 years, and then it's done, so even if I died after the 10 years of paying, the insurance will payout to my family.. at least I hope I understood it properly. Would appreciate a video on life insurance!
Your probably got scammed to sign up for Whole Life insurance. Which they basically steal your money. And give you a very small coverage.
Nice
You do an awesome job explaining how term, permanent, universal life insurances work but I want to know WHY we need them and WHO needs them. Can we have a video on this please? I heard some say get a 10, 20, 30 term life on a child so that when they are of age they get that money and build wealth. Is that really true? A 10 year term with a death benefit of $150,000 on a 20 year old does not get $150,000 if they manage to keep alive in 10 years, do they? Thank you
I'll make a video on this soon. To answer your question, a 20 year old who gets a 10 year term policy with a $150,000 death benefit and does not die in those 10 years will not collect the death benefit. If they want to maintain the coverage, they will usually be offered a new price for the next 10 year term as part of the contract, or cancel, or cancel and apply for a new policy.
makes sense..
If you were to re-apply as a 50 year old, as in your example, but you were NOT healthy, would your premium likely be higher than the priced based on the "ultimate mortality" table?
Quite possibly yes, and in some cases you might be told to apply for "guaranteed acceptance life insurance". The benefit amount might be capped, the premiums might be quite comparatively high, but this is ultimately a reflection of the risk you pose for being paid out due to your increased risk of death.
I need advice
I stop making the payments because I couldn’t afford for it, now I want to get a life insurance again but for what you mentioned on (3:50) seems it’s going to be difficult to get a good price
If you are still able to qualify, there are a few options to consider: maybe a shorter term will have a more affordable price. While the successive terms will be more expensive (and come sooner), remember that you can decrease your coverage later (if your needs have also gone down over time). But I would suggest applying now anyway - there's no cost to apply other than your time, and until then, you won't know what your real options are anyway. Just because you apply, doesn't mean you have to commit to a policy. You'll have weeks to decide while they get the ball rolling, and ultimately, until you sign for the policy they offer, you are not obligated. Good luck!
Any life insurance companies you recommend in Canada. Are certain companies better when it comes to permanent vs term?
I haven't been life insurance licensed for a while now, so I'm a bit rusty on my knowledge of which companies have the highest payout rates for claims, customer service, etc. But the Canadian marketplace is pretty good across the board. There's none that I would recommend over the others, but certainly doing some due diligence to check on their ratings is a good step. Many insurance companies are re-insured as well (it's like insurance for insurance companies to reduce the risk of many large claims all at the same time). What I can tell you about pricing is that different companies compete at different parts of the spectrum all the time. So for example, a 20 year term from one company might be the best pricing for that product, but another company might give the best value only for 10 year term. Ditto for permanent. The really good insurance brokers will know where to look. For instance, it's possible that certain times of the year for term 20 to be only marginally more expensive than term 10 for the same amount of coverage, but you get that price locked in twice as long. But maybe your need decreases over time. So many variables!
@@PreetBanerjee Thanks! Looking forward to your video on term vs permanent!
I need the new video lol
Sir, just defeated you in F1 manager mobile game in Monaco GP
Was it the round where I had Hamilton/Vettel? Regardless, I look forward to our rematch! :)
Yup, you need to shave the beard and leave the stubble.
It is no longer my decision, I'm afraid.