I Just Locked In $2M of Term Life Insurance for $2600 per year

I guess I should be grateful that one agency decided to offer me a “standard” policy. Consider this your daily PSA kids–get term life insurance when you are young, healthy, and can qualify.

While healthcare has government regulations in place to assure you aren’t getting completely screwed over, life insurance has none of this. What this means that life insurance agencies can make you pay more for being “risky” or flat-out deny you, and they won’t even tell you WHY you were denied.

While I’m in the overweight (not obese) category, which makes me higher risk to start, that should not prevent me from getting approved for term life insurance. What prevents me from getting approved, shockingly, is my history of depression. ¬†Apparently having a history of depression means that I’m uninsurable.

One agency offered me a quote at “standard” rates… and given I now understand how uninsurable I am, I’m taking them up on a 30 year $2M policy just to be safe for $2600 a year. I might be over insuring at this point, but I can always drop the policy down in the future if I no longer need that much coverage. I look at my son and think, god, what would happen if I get hit by a bus and my family is left without my income. I can’t leave them like that.

I do have a $300k policy through work, but that’s pocket change for what is really needed, and the likelihood of my working for the same company for the next 30 years (or one that offers similar benefits) is very slim to very none. So that’s a “bonus” should I get hit by a bus tomorrow, but we need a real policy to provide coverage in case I kick the bucket a little early.

$2600 a year seems like a lot (heck, it is a lot, especially since we’re now looking into getting my husband who is 37 with medication-treated chronic high blood pressure his own policy, plus a disability policy since as a self-employed person he does not qualify for government coverage should he get insured or sick and not be able to work. I’m expecting our total insurance coverage to cost us around $8k a year, which is shit, but it is what it is. ¬†Better safe than sorry, I guess.

It’s just so frustrating with life insurance that they can charge me whatever they want and not explain why I’m getting charged this. I wish I was approved by more than one company so I’d have options to compare, but my broker reached out to many companies and only one provided a quote (well apparently another table rated me and he said the quote was so high he didn’t bother sharing it with me.) I should be happy to have a “standard” quote. I hope this agency didn’t somehow miss something in my medical history that will disqualify me later, but they all saw the same information and bloodwork results…

It sounds like after two years of paying premiums it’s harder for them to refuse to pay out if you get hit by a bus… which means if I die in the next two years by getting hit by a bus, they’ll probably accuse me of walking into said bus (even if I’m standing on the sidewalk minding my own business and the bus hits me.) That really sucks, because for the next two years I’m paying for coverage but I’m not really covered at all. After that, I’ll be covered, I just have to come up with the $2600 a year to pay for insurance.

So I’m semi kicking myself for not applying for insurance before I got pregnant, but I’m not sure how much of a difference it would have made… a 30 year policy would have lasted 2 years less at that point, and I still had depression on my medical record, just not PPD yet (and my short disability leave due to it.) I’m unclear if the reason these companies denied me was my PPD, or if it was my record of “major depression” or my not taking medication or what. It’s crazy they don’t have to explain why they won’t give you a policy, they can just deny you and that’s that.

And, am I really that much more likely to die in the next 30 years because I’m depressed and going to therapy? You’d think the many people out there who are depressed but not willing to admit it and who are NOT going to therapy are more likely to end up dead than someone who is being treated.

If they actuarially think I’m such a high risk that they won’t insure me at all–that it isn’t even worth taking some ridiculously high premiums to insure me–then should I be concerned? I mean, am I going to die in the next 30 years because I’m depressed? I’d prefer not to.

 

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