Life Insurance Through Credit Union?

[schildi]

Not sure if I asked this before .... but ....

I am getting this offer in the mail like once a year or so from my credit union, and have never responded.

It's basically $2,000 in life insurance coverage that they are paying for, with the option for me to buy up to an additional $300,000 at $1 per $10K of coverage (so the $300K would be $360 per year), no health check, etc.

Has anybody else received something like this, and is it worth it? It does sound legit, and having some life insurance outside of work does not sound like the worst idea ever.

Thoughts?

[dannylion]

I get those, too.  I recall that several years ago I took the "free" insurance and passed on the rest.  I assume the insurance is still in effect.  Now that I am reminded of it, I will have to check into it. 

No one depends on my income, so I have chosen not to have any (other) life insurance.  If I did want life insurance, I don't think I would sign up for the higher levels that I had to pay for, though, because the rates don't look very favorable.  I expect you can get better rates through something like New York Life or Prudential or the like.  I never looked into it, though, so I could very well be wrong. No doubt one of our insurance gurus will chime in with a definitive answer.  

If someone wants to give my heirs $2000 and I don't have to pay extra for it, I am happy to accept it.   

[Deleted]

I suppose their motive is that they get a cut of the premium if you buy additional coverage.  I agree with checking rates on-line for other companies.  If that rate is the same regardless of age and you're under 50 and healthy, you can probably do better.  

I don't carry life insurance; I haven't since I quit working since I have no dependents and my estate is more than enough to cover final expenses.

[azucena]

It's legit. The $2k is like a teaser in the hopes that you will buy more.

The additional coverage without a health exam works because you have an affiliation with the credit union and the life ins company knows how many are likely to buy and can average out the good risks and bad. Youre also less likely to lapse the policy if its associated with the credit union. And by virtue of having an acct with the CU, you likelg have the money to consistently pay premiums. They also may not make the offer to everyone within the credit union - could be based on account balance or maybe even credit score. Finances are correlated with mortality.

And like Athena said if you are less than 50 and healthy, you may get a lower rate if you bought a fully underwritten policy from a well know carrier.

[andi9899]

I have much life insurance on my own. I will always take the free coverage though. I have free coverage though both jobs. Why not if I'm not paying?

[phil5185]

"""so the $300K would be $360 per year), no health check, etc."""

Depends on the term, your age, etc. But I see ads for a $million dollar, 30 year term,  $30/mon, for 25 or 35 year-olds.  So $300k for $30/mon sounds high? 

OTOH, I don't carry life insurance so I'm the wrong one to ask.

[andi9899]

Jul 5, 2019 20:02:12 GMT -5 phil5185 said:

"""so the $300K would be $360 per year), no health check, etc."""

Depends on the term, your age, etc. But I see ads for a $million dollar, 30 year term,  $30/mon, for 25 or 35 year-olds.  So $300k for $30/mon sounds high? 

OTOH, I don't carry life insurance so I'm the wrong one to ask.

When the quote those rates on the commercials they also quote them at super preferred rates. No way is a company going to offer a blanket policy at the best rate. It's either going to be a standard rate or a surcharged rate to equalize the rate between super healthy people and those with medical problems.

[Deleted]

I take the free insurance, too.  But someone has to claim it.  Because I don't pay premiums, it would probably not make my kids' radar.  I need to note it somewhere.  

I am 65, and I do have $150k worth of term insurance until I am 70.  I got it at age 55 when I married DH.  He married a mortgage in an area where he knew no one.  I wanted him to be able to give away the house if necessary to get rid of it.  It was 2009, and the housing crisis was full-blown.

[Knee Deep in Water Chloe]

I actually received one of those mailings this week. Sometimes I send it back in; sometimes I just trash it. I've never accessed anything other than the "free" insurance. 

[Deleted]

I think I mailed the one in from the credit union, but they keep sending me stuff so either I didn't actually mail it in like I thought, or I have to keep renewing it.  I don't pay all that close attention.  I figure if I ever died nobody would claim it anyhow.  

I really don't have a use for life insurance anymore.  I keep paying on the term because it's so cheap and because I figure the day after I cancel I'll get hit by a truck...but it's kind of pointless. 

[CCL]

Jul 5, 2019 21:53:51 GMT -5 minnesotapaintlady said:

I think I mailed the one in from the credit union, but they keep sending me stuff so either I didn't actually mail it in like I thought, or I have to keep renewing it.  I don't pay all that close attention.  I figure if I ever died nobody would claim it anyhow.  

I really don't have a use for life insurance anymore.  I keep paying on the term because it's so cheap and because I figure the day after I cancel I'll get hit by a truck...but it's kind of pointless. 

Why don't you think life insurance is worthwhile? It would help provide for your kids if you were gone.

[Deleted]

Jul 5, 2019 22:57:09 GMT -5 CCL said:

Jul 5, 2019 21:53:51 GMT -5 minnesotapaintlady said:

I think I mailed the one in from the credit union, but they keep sending me stuff so either I didn't actually mail it in like I thought, or I have to keep renewing it.  I don't pay all that close attention.  I figure if I ever died nobody would claim it anyhow.  

I really don't have a use for life insurance anymore.  I keep paying on the term because it's so cheap and because I figure the day after I cancel I'll get hit by a truck...but it's kind of pointless. 

Why don't you think life insurance is worthwhile? It would help provide for your kids if you were gone.

Because I have no spouse. If I died tomorrow, all my assets would be split between the kids and they'd have plenty of money.   I have a small amount of life insurance through work that is free...80K I think...that would cover the funeral and pay all the bills until the house was sold, but between the retirement accounts, the equity, the college funds and social security for Carrot, they'd have several hundred thousand each.   

[andi9899]

Can a minor receive assets like that? Or would it go into a trust until they reach the age of majority?

[Deleted]

Jul 6, 2019 9:15:59 GMT -5 andi9899 said:

Can a minor receive assets like that? Or would it go into a trust until they reach the age of majority?

It goes into a trust, but money can be taken out for their expenses by the trustee before they reach age of majority.  


eta:  Realistically though, unless their dads died as well, I don't see why it would need to be tapped before they're adults.  Older son would go live with his Dad who wouldn't have child support anymore, so he'd have plenty of money to feed him and pay random school expenses.  His final year of HS tuition is paid, he has a car and a PT job.  He'd turn 18 next Summer and has enough in his college fund to pay for school.  

Carrot would go to live with his Dad who also would no longer be paying child support and Carrot would bring in about $1200/month in SS as well, so they'd be flush with cash.

Biggest tragedy would be Carrot being raised by Ex 2.0, but there isn't much I can do about that.   

[Lizard Queen]

I've gotten those, and read it. It's for accidental death, which isn't nearly as likely as getting sick and dying, which makes it not nearly as useful or valuable.

[bean29]

Jul 6, 2019 11:40:18 GMT -5 Lizard Queen said:

I've gotten those, and read it. It's for accidental death, which isn't nearly as likely as getting sick and dying, which makes it not nearly as useful or valuable.

Thank you, my DH told me the same thing.

[Deleted]

Jul 6, 2019 9:31:43 GMT -5 minnesotapaintlady said:

Jul 6, 2019 9:15:59 GMT -5 andi9899 said:

Can a minor receive assets like that? Or would it go into a trust until they reach the age of majority?

It goes into a trust, but money can be taken out for their expenses by the trustee before they reach age of majority.  


eta:  Realistically though, unless their dads died as well, I don't see why it would need to be tapped before they're adults.  Older son would go live with his Dad who wouldn't have child support anymore, so he'd have plenty of money to feed him and pay random school expenses.  His final year of HS tuition is paid, he has a car and a PT job.  He'd turn 18 next Summer and has enough in his college fund to pay for school.  

Carrot would go to live with his Dad who also would no longer be paying child support and Carrot would bring in about $1200/month in SS as well, so they'd be flush with cash.

Biggest tragedy would be Carrot being raised by Ex 2.0, but there isn't much I can do about that.   

The tragedy is they would figure out a way to make the trust pay for everything.  Trust me.  There was a trust plus SS & VA benefits for my sister and me.  

[Deleted]

Jul 6, 2019 18:07:28 GMT -5 @bamafan1954 said:

Jul 6, 2019 9:31:43 GMT -5 minnesotapaintlady said:

It goes into a trust, but money can be taken out for their expenses by the trustee before they reach age of majority.  


eta:  Realistically though, unless their dads died as well, I don't see why it would need to be tapped before they're adults.  Older son would go live with his Dad who wouldn't have child support anymore, so he'd have plenty of money to feed him and pay random school expenses.  His final year of HS tuition is paid, he has a car and a PT job.  He'd turn 18 next Summer and has enough in his college fund to pay for school.  

Carrot would go to live with his Dad who also would no longer be paying child support and Carrot would bring in about $1200/month in SS as well, so they'd be flush with cash.

Biggest tragedy would be Carrot being raised by Ex 2.0, but there isn't much I can do about that.   

The tragedy is they would figure out a way to make the trust pay for everything.  Trust me.  There was a trust plus SS & VA benefits for my sister and me.  

My mom controls the trust.  Good luck getting a dime out of her early!   My brother was 40 before he got the remainder of his UTMA.  LOL   

[countrygirl2]

We carried a lot when hubs worked overseas, might as well it was through his work and a good price.  we did not convert later as I think it ended at 70.  We don't need it.  Don't have debts, have a will, and all is taken care of already.

[Apple]

I'm a member of two credit unions, and filled out the form for the free life insurance for both, while decling extra coverage.

I pay for basic life insurance at work, even though I probably don't need to anymore at this point.

Once I retire, I won't have that anymore.  The $2k from the two freebies would be enough to cover cremation, and my son will inherit everything else.

[knot12gossip]

I belong to two credit unions. About a month ago one of the credit unions offered me an AD&D (accidental death & dismemberment) completely free for $2K coverage and for $1 I could add an additional $10K. So I opted for that as well. You could opt for coverage up to $350K.

More recently my other credit union offered LI with different options for coverage amounts. The minimum was $25K for $25 a month. It got me thinking... If I'm going to pay $25 for $25K why not look around a little bit. I found that for $40 a month I can get 5X the minimum that was offered through the credit union and make my dollars stretch alot more.

The credit unions make these offerings as a convenience for its members and there is nothing wrong it if it fits your needs at the time. I would also suggest shopping around and see how you can make your investment go further.

[schildi]

I went back and double checked. Yes, it's AD& while they are really trying hard to not reveal that detail.

How do I post "AD& D" without the space?

[Tiny]

From a quick google because I was curious: :


AD& D insurance covers exactly what its name states: accidental death and dismemberment. What does this mean? In the event of a fatal accident or an accident that results in you losing your eyesight, speech, hearing, or a limb, AD& D will pay you or your beneficiaries a specified amount. 
 


ADDED:  my employer offers basic AD& D insurance at no charge (with an option to pay for higher coverage.)    I opt in to the no cost coverage.   Being quickly dead isn't so much an issue (no dependents and a big positive net worth). 

Guess it would suck if I was in a car accident (or if I got hit by something falling off a building on my walk to work)  and survived but could no longer work due to the injuries.   Not sure what insurance would cover that - long term disability?   Or maybe a law suit payout?    I'd need some form of income (or something to cover the cost of my care (since I wouldn't be able to work and would probably have on going medical bills).   ::sigh:: not a happy topic. 

[❤ mollymouser ❤]

Jul 6, 2019 11:40:18 GMT -5 Lizard Queen said:

I've gotten those, and read it. It's for accidental death, which isn't nearly as likely as getting sick and dying, which makes it not nearly as useful or valuable.

The one that our credit union offers is accidental death ... not life insurance.