Questions about Term Life Insurance

[ExtraSlow]

I've got some questions about term life insurance. I know what type of coverage I want, but I don't know what it's called.
Basically, I want coverage for myself, and for my wife, so that in the event of one persons death, the survivor gets X amount, and in the event that we both die, the estate gets 2 times X. (to look after the kiddy).

What's that called? I think it's not typical couples insurance, which has some kind of "first to die" thingy in it.

Insurance lingo is so confusing, and those online caculators are handy, but they don't give the fine print.

Also, any advantage in going with one company over another? My bank offers insurance, but at significantly higher rates than some of the other companies quoted online by Kanetix.

[Euro838]

I'd suggest you meet with one to figure out what options are available and then shop around for the best price. Just like car insurance, you need to compare apples to apples.

Just like any insurance policy or plan, you have to read and understand it very carefully before you sign or agree to anything. But basically there is term and whole life policies where the latter will have "savings" for you once the term is paid up. You'll have to evaluate for yourself what the best policy will work for you. If you are young and healthy, term life is very cheap.

[ExtraSlow]

Yeah, I'm not a fan of the whole life insurance. I've done a little digging on that. Term sounds like the way to go for me.

[sneek]

Originally posted by ExtraSlow
Yeah, I'm not a fan of the whole life insurance. I've done a little digging on that. Term sounds like the way to go for me.

So you are just looking for pure death protection?

[lint]

Originally posted by ExtraSlow
Yeah, I'm not a fan of the whole life insurance. I've done a little digging on that. Term sounds like the way to go for me.

Good choice. With regards to your question, why not put those provisions in your wills instead? Will provide more flexibility and it's something that should already be discussed with your SO.

[lint]

Originally posted by sneek

So you are just looking for pure death protection?

Keep insurance with insurance. And investments with investments. There are no investment options with car insurance or house insurance. Why would you mix them with life insurance?

[bg_27]

Insurance shouldn't be used for investing, but it can be used for tax savings in certain scenarios.

I have Term and Universal policies, the Term policy is enough to cover mortgages and the Universal is for tax planning and large lump sump to my estate.

[ExtraSlow]

Yeah, pure death protection. I don't want to withdaw money from it. I don't want to be subject to varied investing returns.
I just want to know for sure, the exact dollar amount that my family will get when I die.

I like single purpose products.