I got another quote from allstate(for life insurance)?

Question

universal life insurance for only $42 coverage of $100,000 plus $10,000 for my son with cash value. also it has a net surrender value if i ever cancel my policy.....is this cheap?

i don't smoke.....good health(i just did my medical recently from different life insurance) primerica wants to charge me for $36 for 35 yrs term with $150,000 coverage ($10,000 for my son).

i mean its a good deal for $6 more i have a UNIVERSAL plan....what u guys think?

Answer 1

First of all, I would question how adequate $100000 really is in your situation.  It's just not a lot of money to raise a kid.

I can't tell very much about the Allstate quote from here.  Please keep in mind with universal life that the interest rate usually could change, but so could the internal costs.  If a company raises these internal costs, it is not always because of financial strength.

As far as I know, both Allstate and Primerica are captive companies.  That means they do not have access to the open market.  If you're really interested to know if this is a good deal, talk with a few different independent insurance brokers.

Answer 2

Allstate rates are high, always have been. Primerica has cheaper rates; however, I do not like their whole pressured sales concept of buying term and investing the difference with them. A lot of people were promised these huge returns on their investment in the early nineties and Primerica delivered very poor returns on their money. You can get your best rate from an independent broker who has the ability to shop different companies for the best rate on a policy for you and is not tied down to just selling one companies policies.  The broker only gets paid commission if you decide to purchase, we do not charge up front fees. I can beat these rates hands down.