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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: Do you have Life Insurance?
Posted by afternoondelight828
That doesn't concern you?
I always thought that was a supplement to what you already have.
Let me ask you what KIND of life insurance policy do you have for $20 a week. That's $1040 a year. For what exactly?
Because I certainly can NOT supplement with any real security for that amount of premium. At least not sustainably.
ETA:
"LIFE INSURANCE" is a term and a definition of a type of specific coverage. However it is only one piece of a large picture any family's long term financial future. Not every family or situation needs a life insurance policy. Some may have other resources or some may need smaller type policies. Some can not get such a policy due to previous health issues. To say you need life insurance is becoming outdated in the society of 401K, IRAs and Roth Plans. Long Term Healthcare, Disability, Cancer Programs, Home Health riders and other such coverages are more in our future. But that's my humble opinion.
Message edited 12/31/2015 2:27:22 PM.
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Posted 12/31/15 2:10 PM  |
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Re: Do you have Life Insurance?
Posted by Xelindrya
Posted by afternoondelight828
That doesn't concern you?
I always thought that was a supplement to what you already have.
Let me ask you what KIND of life insurance policy do you have for $20 a week. That's $1040 a year. For what exactly?
Because I certainly can NOT supplement with any real security for that amount of premium. At least not sustainably.
Term Insurance for 20 years. Not a lot but $350,000. My dh also has $50,000 through the military that is for his entire life. It goes up every 5 years but it is now only $125/year.
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| Posted 12/31/15 2:14 PM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Do you have Life Insurance?
Figured.. I am not a fan of Term Life.
It's cheap going in but in the long run can be a money pit for the family. The fixed period or 'term' is the only period in which it pays and if you renew it can go up in premiums each time (hopefully without a physical exam) then at a certain cut off (say 70) they just STOP period. If you die outside of the term (be it non renewed or outside 70) then your beneficiaries get NOTHING AT ALL! So what exactly are you paying for? Doesn't THAT concern YOU?!
Plus you get no cash value to it. Versus Whole life you can borrow against (my father borrowed on his to move to Texas only to die two months later). Term Life money is their money.. not yours. period.
Even if you can pick up the policy again at 70 the premium levels will be fitting of a person at the age of 70 buying insurance.. which is to say it's going to be extremely expensive.
It makes sense to cover you for the time of a mortgage or while your children are young enough and you want a net to pay out so they can go to college, both of those I'm getting through my work coverage for a true fraction of what I'd pay for term policy. It's a gamble I choose.
Whole life is MUCH more expensive but you just keep paying the premiums period and as long as you pay your beneficiaries get paid.. PERIOD. no matter when you die.
Given we are all expected to live a LOT longer than our parents, I'd say 70 is an easy number for us to expect to blow past (as I look at my spry 75yr old aunt).
Again.. just my $0.02
and since it won't take a lot of digging to realize I do insurance, let me clarify .. I don't do LIFE insurance. I ain't that crazy. But I have been concerned enough to look into as you see.. several times. Most recently when my Dad died. I dealt with his Life insurance and the VA.
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| Posted 12/31/15 2:26 PM |
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Re: Do you have Life Insurance?
Posted by Xelindrya
Figured.. I am not a fan of Term Life.
It's cheap going in but in the long run can be a money pit for the family. The fixed period or 'term' is the only period in which it pays and if you renew it can go up in premiums each time (hopefully without a physical exam) then at a certain cut off (say 70) they just STOP period. If you die outside of the term (be it non renewed or outside 70) then your beneficiaries get NOTHING AT ALL! So what exactly are you paying for? Doesn't THAT concern YOU?!
Plus you get no cash value to it. Versus Whole life you can borrow against (my father borrowed on his to move to Texas only to die two months later). Term Life money is their money.. not yours. period.
Even if you can pick up the policy again at 70 the premium levels will be fitting of a person at the age of 70 buying insurance.. which is to say it's going to be extremely expensive.
It makes sense to cover you for the time of a mortgage or while your children are young enough and you want a net to pay out so they can go to college, both of those I'm getting through my work coverage for a true fraction of what I'd pay for term policy. It's a gamble I choose.
Whole life is MUCH more expensive but you just keep paying the premiums period and as long as you pay your beneficiaries get paid.. PERIOD. no matter when you die.
Given we are all expected to live a LOT longer than our parents, I'd say 70 is an easy number for us to expect to blow past (as I look at my spry 75yr old aunt).
Again.. just my $0.02
and since it won't take a lot of digging to realize I do insurance, let me clarify .. I don't do LIFE insurance. I ain't that crazy. But I have been concerned enough to look into as you see.. several times. Most recently when my Dad died. I dealt with his Life insurance and the VA.
Yes, I know the difference and have chosen term because it IS a 20 year term while my kids are young. I won't be that old when I need to renew and know it will go up, just like my dh's military one goes up.
I get your point and how you feel and as long as you are responsible for yourself and don't leave major bills for others to take care of, it doesn't make a difference to me how you do it.
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| Posted 12/31/15 2:37 PM |
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alexb
LIF Adult
Member since 5/13 960 total posts
Name:
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Do you have Life Insurance?
My husband and i both have term policies... We also plan on transferring it to a trust this year for tax purposes.
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| Posted 12/31/15 3:18 PM |
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PitterPatter11
Baby Boy is Here!
Member since 5/11 7635 total posts
Name:
Momma <3
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Re: Do you have Life Insurance?
Posted by Xelindrya
Figured.. I am not a fan of Term Life.
It's cheap going in but in the long run can be a money pit for the family. The fixed period or 'term' is the only period in which it pays and if you renew it can go up in premiums each time (hopefully without a physical exam) then at a certain cut off (say 70) they just STOP period. If you die outside of the term (be it non renewed or outside 70) then your beneficiaries get NOTHING AT ALL! So what exactly are you paying for? Doesn't THAT concern YOU?!
Plus you get no cash value to it. Versus Whole life you can borrow against (my father borrowed on his to move to Texas only to die two months later). Term Life money is their money.. not yours. period.
Even if you can pick up the policy again at 70 the premium levels will be fitting of a person at the age of 70 buying insurance.. which is to say it's going to be extremely expensive.
It makes sense to cover you for the time of a mortgage or while your children are young enough and you want a net to pay out so they can go to college, both of those I'm getting through my work coverage for a true fraction of what I'd pay for term policy. It's a gamble I choose.
Whole life is MUCH more expensive but you just keep paying the premiums period and as long as you pay your beneficiaries get paid.. PERIOD. no matter when you die.
Given we are all expected to live a LOT longer than our parents, I'd say 70 is an easy number for us to expect to blow past (as I look at my spry 75yr old aunt).
Again.. just my $0.02
and since it won't take a lot of digging to realize I do insurance, let me clarify .. I don't do LIFE insurance. I ain't that crazy. But I have been concerned enough to look into as you see.. several times. Most recently when my Dad died. I dealt with his Life insurance and the VA.
After doing extensive research, my DH and I decided we could invest the same amount of money we'd be paying into whole life and the return would be greater.
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| Posted 12/31/15 4:31 PM |
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CrankyPants
I'm cranky
Member since 7/06 18178 total posts
Name:
Mama Cranky
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Re: Do you have Life Insurance?
Getting insurance through work is not generally enough. I say this only because your policy ends with your job; i.e. if you lose you job, quit, etc the policy ends.
It's so much cheaper to get insurance when you are young, I would say people should get policies when they are in their 20s/30s if possible and in your 40s or later if you don't get it sooner.
I'm not in insurance but I am in finance and it just makes so much sense.
For those where only 1 spouse works you still want insurance on the non working spouse to take
care of house/kids etc
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| Posted 12/31/15 4:57 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Do you have Life Insurance?
One of the worst things that happend was losing my life insurance when I lost my job. They offered me a discount to keep it but in the hustle and bustle I forgot to mail in the paperwork. Luckily we have additional policies for each of us but I was so mad to lose that it was costing me basically nothing to insure both DH and I. The other policy is enough to pay off the house and other bills if either of us pass. I wish it was more but to be honest $50 per month we pay now is a lot with me not working so I'm kind of glad that's all it is...
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| Posted 12/31/15 5:42 PM |
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Katareen
5,000 Posts!
Member since 4/10 7180 total posts
Name:
Katherine
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Re: Do you have Life Insurance?
Posted by Xelindrya
Figured.. I am not a fan of Term Life.
It's cheap going in but in the long run can be a money pit for the family. The fixed period or 'term' is the only period in which it pays and if you renew it can go up in premiums each time (hopefully without a physical exam) then at a certain cut off (say 70) they just STOP period. If you die outside of the term (be it non renewed or outside 70) then your beneficiaries get NOTHING AT ALL! So what exactly are you paying for? Doesn't THAT concern YOU?!
Plus you get no cash value to it. Versus Whole life you can borrow against (my father borrowed on his to move to Texas only to die two months later). Term Life money is their money.. not yours. period.
Even if you can pick up the policy again at 70 the premium levels will be fitting of a person at the age of 70 buying insurance.. which is to say it's going to be extremely expensive.
It makes sense to cover you for the time of a mortgage or while your children are young enough and you want a net to pay out so they can go to college, both of those I'm getting through my work coverage for a true fraction of what I'd pay for term policy. It's a gamble I choose.
But that's just it... My beneficiaries won't need any money to support them financially after 30 years. My children will be grown adults and our house will be paid off. I assume we would have money in the bank at that point but if not the surviving spouse could always sell the house. Obviously if circumstances change during those 30 years we may have to rethink our policy but if everything continues as it has been we should be fine financially at age 60/65.
So what I'm paying for is the security that if I were to die during those 30 years, my family will absolutely be taken care of. I would rather gamble "throwing away" the $1.50 I pay every day for my policy then gamble that my family will not be taken care of if myself or God forbid both of us were to pass away before that.
I look at it the same way as medical insurance... In the long run I probably pay more money than I actually use, but there is no way I would turn down medical insurance for my family. Just in case.
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| Posted 1/1/16 8:43 AM |
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Paramount
Sweet!
Member since 7/12 4289 total posts
Name:
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Re: Do you have Life Insurance?
Those who can't afford it need it the most.
Those who can't afford renters insurance need it the most.
I have insurance through work. But not private. If I leave the job no LI. DH owns his company and will for the very forseable future and he is covered very well through that.
I keep talking to DH we have to fix this and have private insurance.
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| Posted 1/1/16 10:32 AM |
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Paramount
Sweet!
Member since 7/12 4289 total posts
Name:
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Do you have Life Insurance?
Adding my 2 cents. There is no real reason to ever have whole life. You can invest the money much better yourself then THEY can.
Plus the whole reason for life insurance is to
Make sure expenses are paid and you are not a burden if you die (funeral etc). When you have young kid, married, mortgage it makes sense to cover you during that period.
Now it would be nice if your family gets a payout if you are 85. But that just silly to spend money on life insurance when you are 85. By that point you don't NEED life insurance.
Whole
Life Is one of the biggest money sucks in financial
Planning.
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| Posted 1/1/16 10:37 AM |
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JennP
LIF Adult
Member since 10/06 3986 total posts
Name:
Jenn
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Re: Do you have Life Insurance?
Posted by Paramount
Adding my 2 cents. There is no real reason to ever have whole life. You can invest the money much better yourself then THEY can.
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This was always my understanding.
Conventional financial wisdom says "buy term and invest the difference yourself."
I did some numbers to confirm this many years ago so I don't remember details but what I calculated did agree with this.
It makes intuitive sense, though. No other kind of insurance serves as a savings account, why should life insurance? You buy insurance to protect yourself against catastrophe and to have peace of mind. That is what you are "getting" out of it. It makes no sense for the insurance companies to offer you anything more than that, which right off the bat would make me suspicious of any financial product they would sell that involves "savings."
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| Posted 1/1/16 10:55 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Do you have Life Insurance?
Yes, we purchased a term policy right before DS was born.
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| Posted 1/1/16 2:35 PM |
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