Life insurance help

[jspeed110]

As someone with a tobacco history, life insurance has become quite expensive. As I work to free myself from this awful habit, I am considering insurance offers through my banks-- premiums are only a fraction of what i have been paying, and there are no medical exams. What is the downside of these policies, if any? For example, my $400K policy just went to $270/mo yet I could purchase 2 $300K policies for just $66/mo. Sounds too good to be true? Thanks for your comments.

[Momto2Boyz]

I think it depends on what type of insurance they are offering. I used to work in a credit union, and we offered life insurance to our members as a "perk" and it was cheap and legit. I would get as much info as you can on the company that is actually underwriting the policy and then check them out online and through the BBB and see what comes up!

[frugalwarrior]

Find out how limited the payout is, The stabilty of the company, Is it term 70/90. Do internet searches on life ins. Do you have a waiting period before it kicks in. They say 8-10x your income which varies if you have factors like no dependants, lots of dependants, special needs child, credit life to pay off the house, your age, lots of factors. Will premiums increase yearly, do benefits decline, can you borrow against it. Lots of factors. Do you know anyone in the industry who can reveiw it for you? Life ins. is made confusing for a reason. If it seems too good to be true...

[mombottoo]

Read the fine print and make sure these policies are not "Accidental Death" policies....my grandpa thought he had life insurance, but it was actually accidental death insurance and he died of natural causes. If the policies are term, then check to see at what age they stop paying...some only cover you up to a certain age.

If they seem legit, then it sounds like a good deal...too good actually and you know what they say when something sounds too good...it usually is...too good to be true.