Life Insurance

by Rocket Finance

Recently, I read the statement, “Take care of the pennies and the dollars will look after themselves” and it inspired to me to go through our family budget to look for items where I could save every bit of money that I could. I figured if Hustler is willing to go these types of lengths to save $20, I could evaluate every expense in our budget one more time.

Anyway, one item immediately caught my attention: we were paying approximately $22.50 a month for $50,000 worth of whole life insurance for both my 4 year old and 3 year old daughters – an aggregate $45 dollars a month. Furthermore, we just added a baby boy to the mix and we needed life insurance for him as well. We were looking at having to spend $65 a month just on life insurance for three children under the age of 5.

I’m not sure how I was talked into this particular product because when I met with my insurance agent a year ago, I was only looking for something to cover funeral/burial expenses should the unthinkable happen to one of our children. An hour later I was walking out with a ‘cadillac’ life insurace policy on two toddlers.

Now understand, our State Farm agent is a good man – we have had wonderful experiences with house insurance and car insurance and I wanted to show some loyalty for the outstanding customer service that we had experienced over the last 10 years – even though I was sure that I could get a better bottom-line price elsewhere. I really only wanted about 10K or 15K worth of coverage on each child. He told me that the lowest policy available through State Farm was $50,000 and the difference between term and whole life premiums was not that great “so I might as well get some cash value” later on.

However, because of our ever-tightening family budget, I came to the realization about two months ago, that we just could not afford this insurance product. I called him and told him that I simply wanted $10K worth of term insurance on each child, that while I appreciated his service, I going to shop around and I might let the policies lapse.

Well, somehow, he “worked something out” and within one week, we were the proud owners of a $10K, term life insurace policy for each of our children with an aggregate monthly premium of $8.43 for a net monthly savings of $56.57!

Morals of the story: Free market economics works for the little guy and don’t let business decisions become personal.

  1. 3 Responses to “Life Insurance”

  2. By Frank & sisters on Jun 22, 2007 | Reply

    Your blog is very interesting!
    Please, send us the photo of your computer desk.
    We’ll publish on our blog!.
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    EMAIL: [email protected]

  3. By Jacob on Jul 1, 2007 | Reply

    You should ask your agent if there is a rider available on your own personal policy where you can purchase 5k or 10k of Life insurance to cover the death of a child. Most term policies offer this.

  4. By rocketc on Jul 2, 2007 | Reply

    I think that is what I ended up getting. I’m just a little annoyed that he did not bring up this option sooner. There was no way that I could wanted or could afford 50K of whole life for a two year old…oh well, the agent has done very well with our home and auto ins.

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