Which Term Life Insurance Policy To Cancel?
Posted August 19, 2009 – 4:55 pm in: term life insuranceI have 2 Term Life Insurance policies on myself.
Both are for the same dollar amount.
“A” is 20 yr, of a stable Insurance company under State Farm Insurance ($68 per month)
“B” is 30 yr, one of the AIG Insurances that Uncle Sam bailed out (American General @ $54 per month).
I’ve been paying on both for 18 +/- months. I only need one.
I need to free up the cash, but most importantly, which would be the better one to stay with. I ALMOST cancelled the 20 yr policy, then the AIG debaucle hit the fan. Now, I hesitate.
Is there a web page that can help compare these type “apples to oranges” ?
Please advise and thanks!
121908 8:30
5 Comments
Your AIG Term policy is probably actually with one of their subsidiaries like American General or USLife which are both stable and well capitalized. Even if AIG goes totally under they can’t steal all of the capital reserves away from their life insurance subsidiaries. More than likely American General and all the other life subsidiaries will be sold to more stable corporations in the next few years anyway as the AIG name goes away.
I would stay with the AIG policy.
I don’t really know of a website that lets you compare life insurance policy details. There are rate quote sites that allow you to compare rates and ratings, but that’s about it. If you want to compare your 2 policies you just need to get out the policy pages and compare what benefits each provides.
AIG Insurance is financially stable. If they go under, the policy will be transferred to another insurer in your state.
So, in deciding which one to keep, ask yourself. 25 years from now, do I still want life insurance in place? If the answer is yes, keep the AIG. If the answer is no, keep the State Farm.
And maybe shop it out again, to another carrier – as your rate seems REALLY high.
Well, the obvious question applies: one is a 20 year term and one is for 30 years. How long do you anticipate needing the coverage? Only you can decide that.
Remember also that if you drop one and later decide you want a new policy, it may be much more expensive due to age/health condition changes.
neither of those policies are good you are getting 250k in coverage for both policies and paying almost 70 bucks for each one a good price wopuld be like 19 bucks a month or 70 bucks for the quarter only 4 payments a year i would lookat some other companies before making any decisions you should try allstATE.
That’s a no-brainer..dump the State Farm. They aren’t competitive and that was a mistake out of the gate. Get your car and homeowners there all day long, but life insurance is not their game. That’s overwhelmingly obvious from the rates you posted. You’re paying 26% more for a plan that should be about 30-40% less on the 20 year compared to a 30 year.
The fact that AIG borrowed money from the gov’t has little to nothing to do with the whole equation. Also, at the time you should’ve bought $500,000 with one company and you would have been paying even less because you’re also paying two policy fees.
A good broker would have helped you avoid that mistake from the start — make sure you make friends with one.