How to save money and protect your family when buying term insurance

Many insurance “experts” will tell you to save money buy term ten.  This is true at the start but will cost more over the long run.

First off 10 years flies by!  If you are lucky enough to get a preferred rating and need and want coverage after 10 years you have to prove your health all over again!   If you are like me you can’t run as fast as you could ten years ago and may weigh more too!

A longer level term coverage costs more but protects your current health status and insurability.

Here are some examples:

Diabetes could easily double the premium a person pays

MS is the most common neurological cause of debilitation in young people and affects about 500,000 people in the United States. Worldwide, the incidence is approximately 0.1%. Northern Europe and the northern United States have the highest prevalence, with more than 30 cases per 100,000 people.

MS is more common in women and in Caucasians. The average age of onset is between 18 and 35, but the disorder may develop at any age. Children of parents with MS have a higher rate of incidence (30–50%).  Cost, increase… triple the cost at least!


Five-year relative survival rates for ages 15–99 were highest for prostate cancer (87%), followed by breast cancer (82%), colorectal cancer (56% among men and 59% among women), and lung cancer (14% among men and 17% among women). Age-related patterns of survival vary by cancer site. Men with prostate cancer and women with breast cancer had poorer prognoses at the youngest and oldest ages. Five-year relative survival was 81% for men with prostate cancer under 55 years and 67% for those over 85 years. In comparison, men between the ages of 55 and 74 had survival rates of 89%. Breast cancer relative survival was 73% for those under 40 and 78% for those over 80 years, whereas women from 40–69 years of age had a five-year survival of 83% and those 70–79, 86%.

No coverage until five years after cancer has been treated.  New cost 3 to 5x cost or straight decline.  So 35 year old male instead of paying $27 for $500,000 term ten may pay $81 or $185 per month or unable to get coverage at any price! In ten years the renewals would be well over $400 to $925 per month at age 45!

Here is one example 35 year old male $500,000 term 10 coverage (regular non-smoker)

$27/month.  Later, in ten years he gets, high blood pressure, cancer adds weight etc.  New (age 45) cost $161 per month!

At age 55 trying to put his daughter through university needs coverage $385/month!  Note in twenty years $500,000 coverage is worth only $270,000 after 3% inflation!

Next post how to get all your money back (if you want plus interest) on life insurance.