Life insurance advice for a young guy here.

Juicegoose · #1 05-26-2010, 12:22 PM

Guys the wife and I are about to purchase our first house together(both have owned homes before we met I sold mine and we live in hers). Today I was talking to a good buddy who is a financial advisor and insurance agent about my wifes life insurance policy. He then started telling me I needed to get one as well. I'm 27 and of course have my PPL. He stated that with me having my PPl my rates would be higher and I seem to remember some of you guys talking about life insurance companies that are good to us pilots. I am pretty clueless when it comes to life insurance policy stuff so can anyone tell me the route I need to be taking here? The last thing I want to do is start saving ourselves to death especially with us wanting to move and start our family but If god forbid something happens to me I want them to be safe as well. Any and all advice would be greatly appreciated.

Thanks
Adam

craigvince · #2 05-26-2010, 12:31 PM

I bought a 20-year level term life policy when I was 37 through Prudential. It has a $750k limit with a pilot rider, meaning it covers me if I die while flying. Most policies do not, by the way. I think there's exclusions like aerobatics and cropdusting, but any normal flying activities are covered in my policy. At the time it cost me around $650 per year. My rates cannot go up for the 20 years, but by that point it will be much more expensive to renew.

Juicegoose · #3 05-26-2010, 12:36 PM

is it better to go term or whole life? I'm not sure what my wife has but no kidding it was costing her 600 a month. I asked her about it a little and she said something about it wasn't just a life insurance policy but that it was a retirement setup as well im not sure but we lowered it to 300 a month. Naturally hearing this i got a lump in my throat and was like well honey looks like we'll be staying here for a while.

KirkGrovesRV8 · #4 05-26-2010, 12:43 PM

Term!!!! Whole life is a rip off

JonJay · #5 05-26-2010, 12:46 PM

Quote:

Originally Posted by Juicegoose

is it better to go term or whole life? I'm not sure what my wife has but no kidding it was costing her 600 a month. I asked her about it a little and she said something about it wasn't just a life insurance policy but that it was a retirement setup as well im not sure but we lowered it to 300 a month. Naturally hearing this i got a lump in my throat and was like well honey looks like we'll be staying here for a while.

Term is relatively cheap, but it is "term" and someday you will need to do something else. I have never found whole life to be a good value due to the typical fee structure and I prefer to invest on my own.
There is a lot that goes into planning your needs. As young as you are, keep it simple. Your needs will change.

cjensen · #6 05-26-2010, 12:46 PM

EXACTLY what Kirk said...RUN FOR THE HILLS if they push Whole or Universal to you!! RIP OFF!!!!!!!!!!!!!!!!!! Was I clear???

bkthomps · #7 05-26-2010, 12:47 PM

financial "advisors" are synonymous with life insurance salesmen, he stands to make a good bit in fees and what not off you

cjensen · #8 05-26-2010, 12:49 PM

I have a $400k policy, level term for 20, I pay $30/month with a pilot rider thru State Farm. EDIT: I'm 32, non-smoker, good health.

ONLY TERM.

Juicegoose · #9 05-26-2010, 12:49 PM

Oh ya trust me I probably won't go with him but if I talk with him I at least want to know a little about what he's talking about.

senof28 · #10 05-26-2010, 12:51 PM

Life carriers that don't surcharge do so based on pilot ratings and number of hours flown per year. Yes Prudential allows general aviation NON Business up to 200 hrs a year. Please confirm. All insurance contracts have an exclusion & limitations section. Read it. If anything jumps out at you, ask questions by email. That gives you documentation. By term because it's most cost effective. A general agent can shop carriers.