Does any one else have trouble buying life insurance. Ive looked around and either get turned down or it is way to expensive. What are you doing?
I’m blessed in that I have a package offered through my employer through the provider of my pension plan, which allows me a life insurance plan for an amount equal to my salary. I’m young, unmarried, and have no children so for now…that is enough. When I want more because I have a family, I’m unsure what I’ll do
It’s expensive. I went through both Prudential and New York Life and ultimately got a 20-year term policy with Prudential. I would’ve gotten a longer one with a higher dollar-coverage, but the cost didn’t quite seem worth it. I’ve got a (almost) 4 1/2 year old son and another child on the way, so I’d like to make sure they’re covered if something happens to me, at least through their high-school years. (I’d love to cover them while they’re in college too, but I’m not sure life insurance will do that. I’ll just have to keep saving for that case. Maybe my 401k retirement funds can be redirected if I die early).
Those two companies do medical underwriting. That means they’ll get records from your doctors, and will have someone visit you to collect blood and (possibly) urine samples for their own lab testing. They’ll check your regular vital signs – heart rate, blood pressure, etc. This way, they can determine your premium based on your particular health, rather than just lumping you in a high-risk/no coverage “Type 1 diabetic” bucket.
What am I doing? I am maxing out my term insurance through work. You can get insurance as a diabetic, but you are often pooled with other diabetics who may well take poor care of themselves. This is not the way insurance is supposed to work, but as the insurance companies have moved from being mutual companies that work on behalf of their members to profit engines, it has been corrupted. There are companies that will give you reasonable insurance rates if you can demonstrate good control. But don’t think you will get preferred rates, you will likely at best get standard rates.
But in the end, what I decided was that I wanted insurance to protect my wife and young kids, but that over the long term insurance was a rip-off. So I have maintained sufficient term insurance while I need it to cover the kids through school, but after that, I’ll depend on my savings.