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Originally Posted by aus
You forgot to mention the tax benefits of Whole Life insurance where you can borrow money against the policy later once it's built up some value. There's no tax on this money and you pay back through your premiums. Or you can stop making premium payments after a few years if you've built up enough money. You'll also need to choose how the money is "invested" and there's risk associated with that too. My life insurance policies did GREAT the last couple years- guaranteed returns, but the stocks are now catching up again.
Spec, who do you work for? I have NY Life and have been happy so far. I mainly got them because of their rating.
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I didn't 'forget' to mention that, perse. Was trying to keep things as brief as possible without knowing his parent's situation. Whole/Permanent is a GREAT solution (I own some myself) because money grows tax-free in that account. I did reference it to being similar to purchasing a home, and the money that grows in that policy can be compared to equity.
Have been working with State Farm the last 5-6 years. I'm fully licensed in Life, Disability, Property, Casualty, & Banking, and they are one of the few companies that have quality rating across the board.
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Originally Posted by Hawkeye
Just for a note... AM Best does credit ratings not satisfaction ratings. Those will just tell you the probability that the company will be in business for the length of your insurance.
You may want to also look at customer satisfaction ratings somewhere (I am not sure where though, sorry)
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True, but with Life insurance the amount of time they'll be in business is (I feel) one of the most important factors. There's not generally much maintenance once everything is set up, but I certainly want to know with 99.9% certainty that my company will be in business when I die 37 years from now (or whatev, ha).
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Originally Posted by chungdae
My parents have paid off all their houses and their credit card bills. The only debt they probably have is the two new cars they purchased last year. They just want me and my brother to be taken care of when either of them pass away. I don't have much experience with these types of insurance so thank you very much. If you have any other tips and/or advice I would appreciate it more!
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If they want something for the kids you may want to consider a permanent policy like Whole or Universal Life Insurance. It will last them their entire lives and won't run out at age 75 (many term policies do this). They can get $25-50k or something small for not that much $$ if they are healthy.