You need more insurance should your death be “premature”- that is to say, you still have to make arrangements for the care and feeding of minor children, keep the family in the house you’re currently residing in, replacement of your income for the sustainability of the family over time. When none of these factors are in play, your need for life insurance is drastically cut and you weigh the return on investment of payment of premium on term life insurance.
Dh’s company just did open enrollment of all their benefits this last week and he discovered something about his term life insurance with them, that he was told applied to all life insurance policies. He turned 65 in February and we expected a hike in the premium as a result, that just makes sense because we crossed a threshold into the more likely to die category due to age. That is not what surprised us.
Per the representative, and we verified this with other companies as well, once you cross that 65 age mark your policy value goes DOWN 35%!!! By this I mean if you are paying for a $50,000 policy and something, God forbid, happens you only get 65% of the face value! Furthermore, every four years after that your premium goes up and your true value goes down!
I knew this was common with whole life policies, DR talks heavily about this, but we believed that if you were paying for a certain amount for a policy that was what you got with term life, but it’s not so. The companies we checked with all said the same thing. So if you are near the 65 age mark, you might want to check your coverage. Because with ours the premium due went up and the value of the pay out went down, as of February.
Dh and I looked at our insurance needs and decided that we are getting closer to the mark of what we’d need to be paid out by lowering our coverage and putting that extra money on our debt snowball. Because I am only 62 we kept mine high for now. As we get more and more debt free we will need less to cover our expenses from insurance in the future. So it made sense to us to lower our premium cost some and apply that money to fixing it where we’d only need burial money in the future. Right now we are still paying for much more than burial, but four years from now we will lower our term life coverage even more.
Seems like more and more carriers are trying to move loyal customers (long time) customers off of their unlimited plans and start charging for data. If I were you, I would do exactly what they say and go back to the store and make them hold to the agreement you talked about and thought you were signing up for!
It took about 2 months for ATT to put me back on my unlimited everything plan and they were none to happy about it, but like I told them, I would never willingly give up my unlimited data, texting and talk plan. I realize what I have and because I upgraded phone, doesn’t mean I was upgrading or changing my plan.
I’m not looking to argue or anything along that line, I’m simply curious. I’ve spent the past two weeks helping to administer testing to our grade schoolers for the testing our diocese requires for their students. I know the benchmarks are very helpful to the teachers, and to me as a parent, in knowing what my child’s strengths and weaknesses are, and as to what additional services might be helpful to my child based upon the information gleaned from these tests.
All told, it will come to $997, making minimums on everything including utilities ($308), Debt ($120), Car pmt ($390) but not including our TMobile bill, which has mysteriously INCREASED by $20 for data….which was supposed to be included in the $80 a month bill.
I called TMobile and they’re like “well, you’ll have to go back to the store where you wrote your contract and get it resolved because if WE change it, it will lock you into a NEW plan, and the only thing we can do is take the data OFF.”
Which would actually be OK for my DD22, but IT’S NOT WHAT I AGREED TO Feb 26th !!
So I’m trying to calm down. Because the reality is even if we left TMobile, I’m still going to be at $80 a month minimum for 2 lines: 1 for the entire Family, and 1 for DH. As it stands, if I take the internet/data off DD22’s, we’ll be down to $90. Which is way better than the $180 we were paying 3 months ago, but it’s not the amount we are supposed to be paying.
Just annoys the heck out of me.