Life Insurance

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Tad

Dimensions' loiterer
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Sep 29, 2005
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The great white north, eh?
Anyone done much research on the best options for life insurance for bigger folk?

My current ten year term policy is about to expire. The two ten year terms I've done so far both started with a physical, presumably for them to categorize the risk level. This time they seem to be pushing an automatic renewal at about five times the current premiums, which is a big enough jump that I'm looking at options. I'll call my broker and see what they say, but I'm just looking to tap into experience that anyone else has as to some good options to look into to keep premiums down? (as the primary bread-winner, without enough retirement savings yet, and son still in University, I think I really should be carrying life insurance for the next while at least. Were I to be hit by the proverbial bus next year it would currently be rough on wife and son)
 

agouderia

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Tad - as someone who worked for an (accident) insurance company as a student (... and with a mother who had a 25 year insurance career) - my guess would be that the issue here at stake is not one of size, but of gender + age bracket. That also explains the steep rise in premiums your current policy provider is asking.

The by far largest risk group for life insurance payouts are men 50-60 - regardless of size. From this age group onwards, the mortality gap to women really starts to widen - while many men still have (often relatively young) families to provide for. If you're in that pool, the individual risk is less what counts - its more gauging the overall risk of this age + gender pool any insurance company has.

Asking your broker for other quotes is definitely a meaningful thing to do - but I'm skeptical whether this will lead to any significantly better offers regarding premium-to-coverage ratio. A new insurer will definitely be tougher on the physical as well as being more likely to come with exclusion clauses or longer minimum terms before full coverage comes to force.

Good luck with your search!
 

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