Life Insurance

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UNI1ISU2

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Make sure you read the terms on the insurance too. Not all life insurance is the same. Some exclude a lot of causes of death so if you die from one of those it does not pay out. Most don’t cover suicide for the first 5 years and some even exclude cancer and heart attacks.
 
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BCClone

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Not exactly sure.
Make sure you read the terms on the insurance too. Not all life insurance is the same. Some exclude a lot of causes of death so if you die from one of those it does not pay out. Most don’t cover suicide for the first 5 years and some even exclude cancer and heart attacks.

How about getting knocked of by rocko and Bruno when they come to collect gambling debts? You checked that out?
 
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matclone

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One potential advantage to life insurance is that it passes directly to the beneficiary(s) without having to go through the estate. In other words, if you die with 300k in savings (or other assets), there may be some delay before your heirs get that money. On the other hand, a life insurance benefit should be paid without delay.
 
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BCClone

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Not exactly sure.
One potential advantage to life insurance is that it passes directly to the beneficiary(s) without having to go through the estate. In other words, if you die with 300k in savings (or other assets), there may be some delay before your heirs get that money. On the other hand, a life insurance benefit should be paid without delay.

Over 11MM exemption now. At that amount, I would be happy to just get a cut.
 

matclone

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My mom has been paying on her life insurance for years. 250k policy. She is 72. Last week she got a letter saying her payment was going up 1000%.
Premiums will always go up as we age--and they will escalate.
 

UNI1ISU2

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Premiums will always go up as we age--and they will escalate.
Her policy was probably a policy that was good till age 72. Now the premium she got is to get a whole new policy at 72. Which rates at 72 are going to be high
 

matclone

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Her policy was probably a policy that was good till age 72. Now the premium she got is to get a whole new policy at 72. Which rates at 72 are going to be high
The cost of life insurance (or any kind, actually) is a little like going to a casino. You may win, but in the long run, the house always wins. The incidence of death in a group at a certain age is fairly predictable, and insurance cos. hedge their bets in setting premiums. So, a 70 year old may be in perfect health, but will not find an inexpensive life policy.
 

RedBlooded

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What is your thought process on needing life insurance in retirement? I would think you wouldnt need it since you are not replacing income.
Depends, you may not need it if you have your final expenses taken care of, but its all about your preferences. Do you need your funeral covered by a life policy, or do you want to leave a legacy behind to your beneficiaries?

People act like life insurance is a scam. The problem is, everyone dies at some point and if you bought the policy it will pay.
 
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SDCyclonesFamily

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Wasn’t fancy, it was the charges for my mom a couple weeks ago. Services, casket and vault were all basic level (mom hated spending money so we went that way). It included the organist, sound system, pastor, meal for 75, floral, paper (some of the papers charge 300 bucks now). Plot was bought durning dads passing. All the honorariums were pushing a grand and flowers were another 500-700.
Agree - just wrote the check for my dad's funeral from June. It was just under $14k and we didn't do anything fancy. He died unexpectedly at 66 and didn't have any life insurance or retirement funds. Luckily his house was close to being paid off, but small town real estate took us 4 months to sell. I really wish he would have told me he was going to discontinue his life insurance policy. It was only an extra $100/year and I would have gladly paid it to not have to deal with wondering how we were going to come up with the funeral costs.
 

DreamyCy

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Agree - just wrote the check for my dad's funeral from June. It was just under $14k and we didn't do anything fancy. He died unexpectedly at 66 and didn't have any life insurance or retirement funds. Luckily his house was close to being paid off, but small town real estate took us 4 months to sell. I really wish he would have told me he was going to discontinue his life insurance policy. It was only an extra $100/year and I would have gladly paid it to not have to deal with wondering how we were going to come up with the funeral costs.

Your dad didn’t have 14k to his name?
 

kingcy

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Why do you want to leave money for the next guy your GF dates or marries? I got a 20 year term so my wife could pay our mortgage off and have college money for the kids, if something were to happen.

My wife has a policy from when she was young. For almost 40 years it has been paid into for a small payout and the buyout sucks. So what do you do?

There is a reason the insurance brokers push these policies so hard, the money they make on these policies is good and in some cases they get paid on for years and years.
 

SDCyclonesFamily

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Your dad didn’t have 14k to his name?
Not immediately accessible. He had equity in his house but the average time on the market in his small town is pushing one year. Former dairy farmer and basically was living on social security (contested divorce late in life will wreck your financial health). My brothers and I had to front the costs of everything until we could close on the house.
 
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CycloneNorth

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Quick question for all the CF life insurance experts. I’m 30, wife is 29, and we have a newborn. Well on our way to a good retirement. What would you recommend for life insurance?
 

CloneGuy8

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Quick question for all the CF life insurance experts. I’m 30, wife is 29, and we have a newborn. Well on our way to a good retirement. What would you recommend for life insurance?
Only get term life insurance. Rule of thumb is to get 10x your annual salary as coverage. If you go to https://www.zanderins.com/ they will shop around for you, and you can see which company will give you the best rate (there are other sites like zander, but can't remember their names)
 
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BCClone

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Not exactly sure.
Quick question for all the CF life insurance experts. I’m 30, wife is 29, and we have a newborn. Well on our way to a good retirement. What would you recommend for life insurance?

grab a million each 20 year policy and you should be about set for as long as you will need LI.
 
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DeereClone

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grab a million each 20 year policy and you should be about set for as long as you will need LI.

Agree with this, except I went to 30 years because I wanted to make sure it was in place until all my kids went through college, and 20 years wasn’t going to do that for me.
 
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CoachHines3

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Ya at ur age no need for permanent life ins yet. Look at a term plan you can convert to perm ins in 20/25 years without having to go through underwriting again.