Life insurance on a good day is considered by many to be a necessary evil. On a bad day, just a waste of money. Consider the following on a young couple in Alabama, that had just received a quote for term insurance from, of all sources, an AFLAC agent. The wife and husband were quoted a whopping $200+ per month for $200,000 of 30 year term. At her age 25 and his age 31, the odds are well in their favor that they will live longer than that. That is a lot of money. $70,000 or so over 30 years.
An independent life insurance agent could present the same couple with an option of a return of premium term insurance policy. The same couple, for $250,000, would pay $250 a year for her, $19 a month and $350 a year for him, about $30 a month. Now we have already determined they will outlive a 30 year term. With this new direction they will spend about $600 a year, making their total outlay over 30 years come to $18,000.
If that’s not good enough, at that point they get their return of premium. A tax free check for $18,000. So, at the end of 30 years they can look back at the $70,000 they spent or forward to how they are going to spend their $18,000.
I won’t even go into what AFLAC wanted to sell them for child’s life insurance except to say that it was an equally bad deal. Kind of makes me dislike ducks…………….
This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.
My 20 years of experience give me the knowledge and leverage to find reasonably-priced life insurance for people who have been declined or are paying more than they need to.
not sure where you got your rates for Aflac products but using the info you gave for a 25 and 31 even for tobacco rates its $122/month and that’s adding the accidental death rider that doubles it in the event of an accidental death. its $60/month for non tobbacco rates … I’m not saying Aflac is the best choice for life for most people but what you have to keep in mind is that its a simplified underwriting product. There are no tests involved only a few underwriting questions. Its yes or no based on the app so obviously rates will be higher for such a product.
Ok, whatever. Why would a healthy person accept a higher rate that they will be paying for many years just because it is slightly easier. At that age paying $122 a month is just as stupid as watching a commercial about a duck.