Personal Finance (Not Investing) • Employer Life Insurance Renewal

We only need a modest amount to make achieving our financial goals easy and complete if one of us were to die. $500k each, but I have another $500k that is automatic (no cost to me) on my life. I priced 10 year term policies on each of us through USAA and mine was 1/2 the cost and my wife's was 1/3 the cost and we only had to fill out a questionnaire! The dollar value savings isn't huge, but I still feel dumb for not doing this sooner. We'll save about $250/month this way and be able to continue the policies after retirement if we desire.

Your individual policy is cheaper than the group policy because you and spouse were able to “prove” that you were in good health through the USAA underwriting process. For an individual term policy, good health = good premium rates. Meanwhile, the group policy is reflecting the average mortality rates of people your age in the group policy, which isn’t anywhere near as good as your projected mortality rates over the next 10 years.

My impression is that USAA sells pretty attractively priced individual term policies, and they’re a fine company. If you want to try to save a few dollars more, you could go to a site like term4sale.com or Zander.com to see if you can find companies that beat the USAA rate. But you can just stay with USAA too.

Good move on your part!

Statistics: Posted by Stinky — Wed Nov 13, 2024 4:22 am — Replies 19 — Views 715

---