Life Insurance

[Cyched]

How do you guys feel about life insurance policies for kids?

What people don't talk about with these is that when your child becomes an adult (far and away the most likely scenario), it gets a little complicated.

My parents took out a policy on me when I was a kid. Now I have to decide between continuing to make payments on something I don't want or need, or cancel the policy my parents so thoughtfully paid into for 20+ years.

Don't do that to your kids.

 

[Cyforce]

Indexed universal life policy is the way to go.

 

[Gunnerclone]

How do you guys feel about life insurance policies for kids?

We have some indexed whole life policy or something on our son. We’ve got insurance agents in the family so I just agree to whatever they say so they don’t bother me about it. I’ve looked at the statements and it seems like a rip off.

 

[Rabbuk]

We have some indexed whole life policy or something on our son. We’ve got insurance agents in the family so I just agree to whatever they say so they don’t bother me about it. I’ve looked at the statements and it seems like a rip off.

you are correct.

 

[Cyched]

We have some indexed whole life policy or something on our son. We’ve got insurance agents in the family so I just agree to whatever they say so they don’t bother me about it. I’ve looked at the statements and it seems like a rip off.

Don't do business with family or friends.

 

[Tailg8er]

What people don't talk about with these is that when your child becomes an adult (far and away the most likely scenario), it gets a little complicated.

My parents took out a policy on me when I was a kid. Now I have to decide between continuing to make payments on something I don't want or need, or cancel the policy my parents so thoughtfully paid into for 20+ years.

Don't do that to your kids.

We have some indexed whole life policy or something on our son. We’ve got insurance agents in the family so I just agree to whatever they say so they don’t bother me about it. I’ve looked at the statements and it seems like a rip off.

This is my situation. Brother in law who worked for an insurance agent talked my wife into these for the kids, now I have a $300/kid bill each year that my kids will have $2,000 to show for when they turn 18... great investment.

 

[tim_redd]

Life insurance is a great investment for the guy selling it to you.

 

[jsb]

Why not just get whatever is offered through your employer? Mine offers 2.5 times my salary for a couple bucks a month.

 

[DeereClone]

If your girlfriend financially depends on you today I’d probably get enough to cover the mortgage and a little extra. 15 year term would be pretty cheap I’d think.

Anything besides term is a scam and I would avoid at all costs in your situation.

 

[Gunnerclone]

So one of the other policies I have is like a 500k 30 year term policy but when it runs out I can get a new term without having to answer any medical questions or have the lady come and invade my home and give me a checkup and make me piss in a cup.

does that sound legit? This sounds like Las Vegas **** not something that is actually beneficial to me?

 

[mywayorcyway]

Most stuff was covered, the only things that seem to be missed are where you're at now isn't necessarily where you'll be in 10 years.

The basic life insurance provided through an employer is only good while you're working there (unless you've taken out an actual policy through them). If you change jobs, you may not have that option.

Some folks are saying no kids, no wife, no need for insurance. Maybe not now, but maybe you will when you're 50. The longer you wait, the more expensive/more difficult it will be to get life insurance.

Buy a 15 or 20 year term plan that would ensure things are taken care of. Don't wait until you're 50 to do it.

 

[Trice]

So one of the other policies I have is like a 500k 30 year term policy but when it runs out I can get a new term without having to answer any medical questions or have the lady come and invade my home and give me a checkup and make me piss in a cup.

does that sound legit? This sounds like Las Vegas **** not something that is actually beneficial to me?

Lots of unknowns here. What are you paying for this policy? Any idea about the cost of the "new" policy" that you're able to renew into? Is this a rider on a term policy you're paying extra for?

If you got a 30-year term policy, that probably carries you into your 50s, at least. What will your savings be at that time? You may not need insurance any longer at that point.

 

[Dopey]

No kids and just a GF?

Unless you want to end up on a Dateline episode, I’d roll the dice without.

 

[RedBlooded]

Sold Life for 5 years. There is no right or wrong, you just need to pick your strategy. Term policies rarely pay out because its a low chance you die during those years. My strategy was to have a term while I'm building my wealth and I have one 25k whole life to cover final expenses.

A guy I worked with only bought return of premium term policies and 10 pay life.

Employer plans are great, take them but don't design your plan around them, you generally don't get to keep those when you change jobs or retire.

The big thing is to have one in place before you medically don't qualify. Get cancer, have a heart attack or become diabetic and you are out of luck.

 

[SpokaneCY]

No kids, no wife... why again would you want life insurance?

You MIGHT want to secure a term policy at age 40 because you MIGHT get married, you MIGHT have other life obligations, and you MIGHT have health issues later in life that could make it prohibitively expensive.

But what everyone else has basically said - insurance is insurance and investments are investments. The 2 generally shouldn't cross paths.

 

[SpokaneCY]

So one of the other policies I have is like a 500k 30 year term policy but when it runs out I can get a new term without having to answer any medical questions or have the lady come and invade my home and give me a checkup and make me piss in a cup.

does that sound legit? This sounds like Las Vegas **** not something that is actually beneficial to me?

Is the lady cute?

 

[RedBlooded]

On the topic of life for kids, I have one on my kids. I have friends who have lost kids and if something happened to my kid I'm not going back to work. Also if my kids become medically uninsurable, I want them to be grandfathered in on a plan when they are adults. So its not an obligation, its a right to vote.

 

[Cyched]

On the topic of life for kids, I have one on my kids. I have friends who have lost kids and if something happened to my kid I'm not going back to work. Also if my kids become medically uninsurable, I want them to be grandfathered in on a plan when they are adults. So its not an obligation, its a right to vote.

How much insurability does a child policy actually guarantee though? Does buying a $10K policy on your child actually guarantee they’ll be able to purchase a $500K - $1M policy that they’d need as an adult?

 

[CycloneDaddy]

Sold Life for 5 years. There is no right or wrong, you just need to pick your strategy. Term policies rarely pay out because its a low chance you die during those years. My strategy was to have a term while I'm building my wealth and I have one 25k whole life to cover final expenses.

A guy I worked with only bought return of premium term policies and 10 pay life.

Employer plans are great, take them but don't design your plan around them, you generally don't get to keep those when you change jobs or retire.

The big thing is to have one in place before you medically don't qualify. Get cancer, have a heart attack or become diabetic and you are out of luck.

What is your thought process on needing life insurance in retirement? I would think you wouldnt need it since you are not replacing income.

 

[benjay]

Probably wouldn't do anything in your shoes, assuming you're not drowning in un-collateralized debt that is.