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Originally Posted by kscarrol
Life insurance proceeds are paid directly to the beneficiaries and are tax free. The remainder of your estate may or may not go through probate depending on how it is structured...
A life insurance policy is paid upon proof of death. It is a black or white answer, just like you're not "kind of pregnant". Coma/life support is not death. Pull the plug and die, policy pays out... If you want something to cover coma type situations you will need long term care/disability insurance. Health insurance will cover most medical costs but provide no payments to family. If you are the sole provider, the loss of your income will be covered by disability. Bottom line, talk to an agent who knows what they are doing. You have access to USAA so start there and talk the them about your needs...
Edit: and I would think long and hard about a 30 year term policy. But again without more information on your situations/needs, it is hard to say. I got a 20 year policy years ago, that was enough to get the kids through college. Once they are on their own, I have no need for life insurance so why keep paying the premium... But that's my personal view/situation.
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I'm with you. Picked up a 20 year term policy for myself and the wife. At the same time, we picked up smaller whole life policy for each of us. Locked in premiums from a time when were were both super healthy.
The one thing we did different with the 20 year terms was chose a return of premium policy. The premium is slightly higher throughout the term, but when the term expires, they refund us 100% of our paid in premiums.
As far as fine print on the term policy, as mentioned above, if your dead, they pay the named beneficiary. I'm sure all of them have something about a suicide, i didn't bother reading mine because i have an Insurance agent who handles all my stuff. He told me if we can stomach the premiums, the ROP term policy was the way to go because they were exactly the same as other term policies, except at the end of the term, we'll have about a $100k windfall of sorts. And it's amazing how quickly that term is coming up!