Life Insurance??

   / Life Insurance?? #31  
term insurance is the most appropriate type for most people. Families who have significant assets should consult an estate attorney regarding the most advantageous way to fund possible estate taxes. Permanent life insurance can be an important part of a risk management strategy. Insurance is not investing.
 
   / Life Insurance?? #32  


Nahh, Jerry....something tells me you made the right choices, at least most of the time and worked your butt off...Now I will buy that...:thumbsup:

Thanks Bob......we have worked hard for what we got and have never asked anyone including parents or the government to pay our way. I'm betting you have similar standards. We are fortunate.....good friends, family and dogs. Appreciate your comments.:drink:
 
   / Life Insurance?? #33  
I have about $500K of term and $100 of whole life. I think it is a necessary evil, if something happens to me my wife would be in financial straits without the insurance. That would be unacceptable. Hate paying the premiums, but consider it necessary. I hope I outlive the term coverage and I won't look back an regret all those premiums I paid at all.
 
   / Life Insurance?? #35  
I have 500k 20 year term life through tiaa-cref. $300 per year fixed. I am 35.

I don't know that much about life insurance policies. I have had a few priced for me. I think I would read the fine print very carefully on a policy that guarantees me $500,000 upon death or paying $6,000 over a twenty year time span. I would say every person in America should be so fortunate as to have a life insurance policy like the one you have.
 
   / Life Insurance?? #37  
I don't know that much about life insurance policies. I have had a few priced for me. I think I would read the fine print very carefully on a policy that guarantees me $500,000 upon death or paying $6,000 over a twenty year time span. I would say every person in America should be so fortunate as to have a life insurance policy like the one you have.

this sounds super cheap but it's the going rate for a healthy non smoker in that age bracket. Why? Because only about three percent, from memory, of all term policies ever pay out. They run out before the person dies and the premiums not used for a death payment are used to lower the cost of the product for everyone buying it. Term insurance is incredibly competitive, there really are good deals out there.

Also, remember that almost all the money paid as premiums into life insurance are regulated and required to be invested in super secure investments.
Personally I would try to choose a mutual insurer instead of a stock insurer. In the first, the policy owner is an actual owner in the company and all profits accrue to the policyholders, albeit in a very long time frame. Stock insurers first look to profit and are usually good dividend paying investments, but the key is the profit/dividend goes to third party investors, not the people being insured. Mutual companies are becoming fewer but the concept is an excellent one.

If you have not had a physical/lab work in several years, get a physical done before you apply for insurance. Really. Otherwise the underwriting will pick up stuff you don't know about, and all insurers assume the worst and worry about info intentionally withheld. A good broker armed with accurate health info is your best bet. Otherwise, you'll apply for insurance at one company, get upcharged or declined due to health issues you aren't aware of, but likely should be..., and once you've been rated or declined by an insurance company, all insurers share that data base. There is no where to hide.
Much better to go in with a known condition submitted to a carrier that the broker knows isn't scared of that particular condition, and get the best rate going in.

Different insurers have different "appetites" for risk, often simply because they specialize or understand that condition well from experience.
But go in blindly to the wrong insurance company, get turned down, and now even the company that might have accepted you the first time now won't.
I saw this happen time and time again. The agent/broker should ask a million health questions up front, and if there is a real concern, can send in a
"preliminary" submission, which if declined or objected to won't go in the big database in the sky as a decline. That black mark is really hard to deal with, and often is obtained through the total ignorance or laziness of the broker applying for insurance for you. Find an experienced broker who has access to many markets, not just one, and you will have the best chance of getting the best value. Brokers can plug in your basic data and get quotes back from fifteen companies in a matter of seconds.

If I were in my thirties or forties, I'd buy as much thirty year term as I could or that makes sense for my need. The last ten years of a thirty year policy are relatively very, very inexpensive vs taking out a new policy at your older age. And yeah, the kids may just be getting out of college then, but it's amazing how other needs show up too.

I'm going to finish this ramble by mentioning something I learned early on. It was called "finding the love". Yes, you have to do your calculations and determine financial need, but if someone has an attitude towards life insurance, perhaps from a prior bad experience, unless they are motivated by love to protect their families, the insurance doesn't get purchased. We buy this insurance not for us but because we love our families and want to protect them when we can't be there to do it. I mean to upset no one by saying this, but guys, this is what makes this discretionary insurance world go round.

almost all the life insurance I sold (always asked for, never solicited) was term insurance, and with a big company that paid a twenty percent commission the first year, and not double or triple that. Why? the premiums were usually the lowest. I had already vetted the insurer quality, now it was my job and responsibility to get the least expensive insurance in to effect so that more money was left over for college funds and general living expenses. Of course I came at this from a financial planning standpoint, not a "eat what you kill" sales approach.

I wish I could be as succinct as Bird. Sorry for the length of this. Unfortunately I used to teach this stuff in a classroom so I tend to get up on that podium too often. And frankly, I find a discussion of grease types much more interesting...:D
 
   / Life Insurance?? #38  
True. On the monetary side of things.

I view it as an investment in my families future, and my current peace of mind.

I don't think the point is to not buy insurance, the point is to buy it smart. Products that provide insurance and also act as an "investment" end up putting money into the pockets of insurance companies that could go into the pockets of your loved ones. Daugen has provided some great inside information on how to buy it smart. The other half is to invest smart so that you can support yourself through retirement and hopefully leave a legacy.
 
   / Life Insurance?? #39  
So a person without dependants would be wasting premium dollars buying life insurance?
 
   / Life Insurance?? #40  
So a person without dependants would be wasting premium dollars buying life insurance?

A single person without financial debt cosigned by another, (i.e. did your parents assume $50K in debt putting you through law school, or buying your first house, whatever) likely no reason to buy. A married spouse that both have self supporting incomes (one income, either one, could keep the survivor in their current home and lifestyle), well, likely not either. Unless you think you might get married and have kids later, and your family all died of cancer, or something hereditary, I can't think of many uses for life insurance other than to "create an estate". Always wanted to give $100K to your church? Or do some other good financial work? Most life insurance companies take a dim view of folks buying lots of insurance where there isn't a need. Be really sure on your need or lack of it, and if not there, put the money in your IRA.

there are many exceptions to all of this; life is too complicated and people get into financial entanglements/commitments that sometimes can only be handled by life insurance, like a business buy sell agreement or a family farm life partnership. It's always worth talking to an advisor; the first meeting is free and if a "needs analysis" can't show some legitimate need, buy yourself a nice lunch and keep your money elsewhere.

I have a kind of silly perverse enjoyment giving general advice like this, because in my last career I earned my CFP, which is not easy to get, and if I had said more than my name without twenty three pages of disclaimers, I would be lined up and shot. I was constantly getting gently reprimanded by my boss not to be so specific and certainly not to put too much in print. My response was always "but it's true, plain and simple". True is ok but only when accompanied by enough disclaimers nothing seems to be believable. When I retired, I turned my CFP designation back in, because having it carried huge potential liability. As my accountant brother told me, having that designation made me a "Most Trusted Advisor" and that comes with a huge bullseye on one's back. Now I'm a happy retired guy that is just trying to give generic helpful advice. As they say,
just my two cents now. Your results may vary...

btw, try to pay annually if you can. Unless you have automatic monthly premium withdrawals, the fees for paying other than annually are usually a poor deal.

hope this helps a few folk. I think I need to shut up here and let others give their experiences.
 

Tractor & Equipment Auctions

2005 FORD F350 XLT SUPER DUTY SERVICE TRUCK (A51406)
2005 FORD F350 XLT...
INGERSOLL RAND INDUSTRIAL AIR COMPRESSOR (A54757)
INGERSOLL RAND...
UNUSED LANDHONOR SD-22-72W NO TILL SEED DRILL (A54757)
UNUSED LANDHONOR...
2023 Club Car Carryall 700 Utility Cart (A51691)
2023 Club Car...
2019 CATERPILLAR 303.5E2 CR EXCAVATOR (A52705)
2019 CATERPILLAR...
2019 Allmand Night-Lite V-Series 7kW S/A Towable Light Tower (A52377)
2019 Allmand...
 
Top