Term Life Insurance. Which is better, One $800K or 2 $400K from 2 different companies.?
Looking at 20 year term. Also is it better to use a mutual company or does it matter when it comes to term policies?
Looking at 20 year term. Also is it better to use a mutual company or does it matter when it comes to term policies?
October 19th, 2009 at 2:58 AM
If they are the same price, 2 policies for $400k are better than one for $800k. The reason is because your state has a guarantee association that backs up the claims of bankrupt insurance companies (usually up to $300,000. check with your state). Normally insurance companies can find another company to buy them out before this happens. But in the rare event they can’t, I’d rather have two policies than one.
Of course, in the real world I doubt two polices cost the same or less than one. So given this is an unlikely scenario, how much is that risk worth to you?
For term insurance, it does not matter if it is a mutual company or not. I’ve never heard of a term policy that pays dividends.
October 19th, 2009 at 2:58 AM
One 800K from a highly rated company. You can check ratings on AM Best. 2 policies would generally be more expensive and there is no upside to having 2 that you couldn’t do with just one. It doesn’t matter if it is a mutual company or not.
October 19th, 2009 at 2:58 AM
Which is CHEAPER? Odds are, you’re going to pay less for the single policy.
October 19th, 2009 at 2:58 AM
Neither….your best option to get more bang for your buck so to speak would be a Universal policy. It increases annually….you can utilize the cash if need be….and it is extremely flexible. You can stop paying if issues arise and continue paying later, and it will still be there. Of course this is only for a certain amount of time until it is fully depleted. it is the best option. It is like having a savings account and Life Insurance in one!
October 19th, 2009 at 2:58 AM
You can easily check life insurance quotes in internet, for example here - lifeinsurance.awardspace.info
October 19th, 2009 at 2:58 AM
I think that its easier to have only one policy, try this site
http://linsurance.notlong.com
here you can get quotes from different companies so you can find the best option for you.