How to Choose Long Term Life Insurance Quote

How to Choose Long Term Life Insurance Quote

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A lot of people shy away from life insurance simply because they don’t understand it. But it’s time to change that…

RELATED: Your 7 most common life insurance questions answered
Who needs life insurance?

If you’ve got children or other financial dependents, you need life insurance!

It’s distressing to me how few people with young kids have life insurance. The problem is the insurance that’s best for people with dependents is not touted by the industry as a general rule.

Stay-at-home spouses have a special need for life insurance, too. A recent survey from found that the ‘salary’ such parents earn by dealing with laundry, kids, cooking, etc., is more than $143,000!

That’s more of an attention-grabbing number than anything else because stay-at-home parents don’t actually ‘earn’ that, but you get the idea.

Should a stay-at-home spouse pass away, the remaining parent would have to suddenly pay for childcare and everything else a stay-at-home parent does on a day-to-day basis. That’s why it’s essential the parent at home have a policy on their life. There’s a definite ‘insurable need’ there.

Other examples of people who need life insurance would include two-income couples with no kids if each person relies on the other’s income to pay monthly bills.
Should you get life insurance on your children?

The answer is a resounding no! Children don’t earn any income; they actually cost you money. So there’s no insurable need there.

Resist any and all pitches about life insurance as a way to save for college.
What kind of life insurance should you buy?

Too often, we’re sold insurance products with massive commissions and a high cost. That’s a formula for failure when you have to pay the premium, and it sets too much of us up for a lapse in coverage.

Anecdotally, I’ve heard that 25% of people who buy life insurance stop paying on the policy in the first three years. By the 10-year mark, it’s almost 50% of us who quit paying. So you pay all that money to wind up with a big, fat goose egg.

What you need is a policy that’s easy to buy, easy to own and cheap!
Term life insurance is the way to go

Buying what’s called ‘level term life insurance‘ is simple and costs practically no money at all. The following illustration is courtesy of

level term life insurance rates

‘Level term’ means you pay one flat rate year after year for the length of the policy. This policy will replace your income should you die prematurely.

You buy it for periods of 20 or 30 years and the premium stays the same during the life of the policy.

Women’s coverage is even cheaper because they generally go to the doctor and take care of themselves! So if the stay-at-home spouse is a woman, you generally want to buy a level term policy for 15 or 20 years, depending on the age of your children.

Make this one of your three simple money moves to make this year.
Where can you shop for term life insurance online?

Shopping for term life insurance is easy on the Internet. You can comparison shop for quotes at any of a number of sites like:

If you’re not comfortable shopping and buying insurance on the Internet, that’s fine. Simply go buy a money magazine and you’ll see ad after ad of companies selling life insurance. Some respected ones I like include Amica Mutual and even USAA.

Certain health conditions make insurance more expensive or even unavailable. If you have such a condition, you’re what’s known as ‘rated’ in the industry, which means you will pay more money than the example in the chart above.
Should you get a life insurance policy with no medical exam?

Some companies will sell you a level term in a guarantee issue without a medical exam. In plain English, that means you won’t have to pass traditional medical underwriting where they come to your home and draw blood.

Instead, these providers use an algorithm and info in existing databases to set your rate.

In many cases, you’ll get a decision in as little as 20 minutes after you complete your online application. But there is a trade-off…

These so-called “simplified issue policies” that only involve you answering a few health-related questions rather than going through a physical, blood test, etc. are often more expensive than their medically underwritten counterparts.

It’s also important to note that these policies are dependent on you being truthful in answering the survey questions — if you’re less than honest, you run the risk of your policy being voided.

Simplified issue policies tend to work best for people who have medical issues. If that doesn’t describe you, you’re probably going to find yourself paying too much for a simplified issue policy.

Three providers that offer this kind of thing include, and, the latter of which you may know better for its student loan refinancing.

In addition, we’ve got a couple other no-medical-exam providers here.
Warning: Why you don’t want to consider a permanent policy

Whenever the topic of life insurance comes up, I get a lot of questions about permanent policies — universal life, variable universal life (VUL) and whole life.

Let me just begin by saying this: You should never buy VUL and/or universal life under any circumstances. They’re junk, snake oil, hideous, rotten, terrible and just about any other negative descriptor you can think of.

They’ve blown apart the wallets of so many people. Here’s what you need to know to protect yours…
Avoid anything with ‘universal’ in the name

I have long said anything that has the word ‘universal’ in it is radioactive. First, these plans have huge commissions for the agents that sell them. But the worst part is these policies have enormous fees and often run out of money.

If you can’t meet what’s called a ‘capital call,’ where you have to come up with extra money, your account that you poured all this money into gets wiped out and then you have a giant tax liability on your hands.

With variable or indexed universal life, chances are you’ll be promised — in mind-numbing language going on for page after page — that you will get a magic policy that’s a savings account, an investment account and an insurance account all in one.

The policy illustrations will show you that you’d pay premiums for some time and then magically the policy would take care of itself. It’s pitched as a magic-carpet policy that after a while would fly on its own but you’d have the benefits of the policy.

In practice, it’s hasn’t worked out that way.

In one case, The Los Angeles Times reported a man named Philip was paying $25 a month for life insurance over the course of 23 years.

He then got a notice that his premium was going from $25 to $510 each month! If he didn’t pay, he would lose everything he’d paid over the years and there would be no death benefit for his wife when he died.

So suffice it to say, you should avoid VUL and universal life at all costs.
Whole life only works for a sliver of the population

Whole life, meanwhile, is not a crooked deal like VUL and universal life.

But it’s only a good choice if you are ultra high income earner — earning about $400,000 annually. If that’s you, you can benefit from some tax advantages that come with a whole life policy.

But for everyone else, stick with level term life insurance.
Keep these pointers in mind as you shop for term life

How much life insurance do you need? The simplest rule is 10 times your income.
Look for insurers that are rated A++ from A.M. Best as a signal of their financial strength and their likely claims-paying ability down the road.
Only buy life insurance where you work if you have health problems. Otherwise, I prefer you to qualify and go through medical underwriting so you can buy a policy on your own. Most of us don’t stay at the same place forever and you may not have a right to take that insurance with you.

Auto Car Insurance Quote Coverage in New Jersey

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Walking in New Jersey
Auto Insurance Coverage In New Jersey

Whether you’re new to New Jersey or you’ve lived in the Garden State for a while and are just shopping around for the best car insurance rate, you’ll be glad you checked with GEICO. We’ve got many ways to help you save money and lots of useful information for New Jersey drivers just like you.

Take a look at the facts below as you consider the auto insurance coverage that’s right for you. You can start your New Jersey car insurance quote online or call us at (800) 947-AUTO (2886).
Standard vs. Basic Car Insurance Policies In NJ

There are two common types of New Jersey auto insurance policies: standard and basic. The standard policy (most popular) provides several coverage options as well as the option to buy additional protection. A basic policy, while cheaper, provides limited benefits.

As a New Jersey driver, you must have an insurance ID card for each vehicle on your policy and be ready to show it in case you:

Schedule a NJ vehicle inspection
Are involved in an accident
Are stopped by a police officer

Required Auto Coverage In New Jersey

According to the New Jersey Motor Vehicle Commission, all vehicles in NJ must have Liability, Personal Injury Protection (PIP), and Uninsured/Underinsured Motorist Coverage.

Bodily Injury Liability Coverage: Minimum coverage level is $15,000 per person and $30,000 per accident
Property Damage Liability Coverage: Minimum coverage level is $5,000 per accident
Personal Injury Protection (PIP): Minimum coverage level is $15,000
Uninsured/Underinsured Motorist Bodily Injury Coverage: Minimum coverage level is $15,000 per person and $30,000 per accident
Uninsured/Underinsured Motorist Property Damage Coverage: Minimum coverage level is $5,000 per accident with a $500 deductible

Full Tort vs. Limited Tort For NJ Auto Insurance Policies

In New Jersey, you have the option to carry either Full or Limited Tort. With Full Tort, you retain the right to sue the negligent party for pain and suffering as a result of an accident, regardless of the severity of your injury. Limited Tort is a less expensive option because you agree to limit your ability to sue for pain and suffering unless you sustain a catastrophic injury.

If you are unsure of which option you prefer, you can always speak with a GEICO insurance expert. You can even swing by one of our local New Jersey offices and speak to one in person.
Important Information About Personal Injury Protection (PIP) Claims In New Jersey

Information about car insurance claims requirements for the State of New Jersey, as well as documents related to New Jersey’s Decision Point Review Plan and Pre-Certification Plan can be reviewed in the link provided.
New Jersey Teen Driver Laws

New Jersey teen driverIn New Jersey, teens may apply for a student learner’s permit at 16. After the new driver obtains his or her permit, he or she must drive supervised for at least six months. The driver may not be on the road between 11:01 PM and 5:00 AM, and must be accompanied in the passenger seat by an adult supervising driver who is at least 21 years old, has a valid NJ driver’s license, and has at least three years of driving experience. Parents or guardians are allowed as passengers, but not siblings.

At 17, drivers may get their probationary license, which permits them to practice unsupervised driving. While the driver may be on the road unsupervised, the rest of the student learner’s permit rules apply. When the driver turns 18, he or she is eligible for a full driver’s license. Please make sure you notify us when any dependent or household resident obtains a license or a permit so we may review your policy coverages.

Through GEICO, student drivers with a “B” average or better may be eligible for a Good Student Discount. Check with a GEICO agent to verify requirements.

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