AVOID Northwestern. I did say use a FP who isn't tied to one company. There are many options who's number one goal is to not maximize life ins sales.
Life Insurance
- Thread starter AgronAlum
- Start date
Yup, I understood you. Just someone who’s tired of NW calling him.
If anyone needs a financial planner in Ames, just send me a PM. I am happy to make recommendations.
PM sent.
If anyone else has a recommendation, I'd be happy to hear. It was something on my list to research on 2021.
Get term to provide for basic needs if something happens to you so your spouse and kids are provided for their needs. It is cheap. You can get term on "second to die" - it pays only when the second spouse passes and is cheaper. Good estate planning.
Whole life is a savings plan you lose your ass for the first 5-8 years that will have a death benefit. You will pay on it for the rest of your life unless you don't need it any more. You can "RPU" it and stop paying premiums and it will grow tax deferred at around 3-4%. Or you can cancel and take the cash value as a return if principal. I had both when I was a guarantor on significant debt (8 figures) for my business.
I let my term expire and go away and rpu'ed my whole life policy. No more payments and my cash value now exceeds what I paid in.....not a great investment, minimal downside and can grow tax deferred.
Whole life is a savings plan you lose your ass for the first 5-8 years that will have a death benefit. You will pay on it for the rest of your life unless you don't need it any more. You can "RPU" it and stop paying premiums and it will grow tax deferred at around 3-4%. Or you can cancel and take the cash value as a return if principal. I had both when I was a guarantor on significant debt (8 figures) for my business.
I let my term expire and go away and rpu'ed my whole life policy. No more payments and my cash value now exceeds what I paid in.....not a great investment, minimal downside and can grow tax deferred.
I can't decipher the sarcastic responses from the legit ones in this thread.
Anyone saying do this or do that doesnt have enough info from the original poster to really say what the best approach is.
Financially secure, kids grown, wife is attractive and would find a rich husband after me so why the f would I have life insurance?
I honestly had no idea there were this many options. I assumed you paid a premium and my wife would cash a check if I croaked which is term life from what I’ve gathered in this thread. I bought into my old companies life policy after college and that was enough.
I’m just looking out for my wife if something happened to me. She doesn’t work and we’re about to have a third kid. I’m definitely more interested in having that money available to her if something happened to me in the short term.
You are just fine without life insurance. A perfect example of someone that probably needed term earlier in life, and now you are set. You are a prime example against the need for whole life life insurance.
Obviously it’s up to you to crunch the numbers and determine how much you need, but from your OP $200-300K seems low for a non-working spouse and 3 kids. JMO.
So she can have a boy toy when your gone, Sugar Mommaing isn't cheap.
That’s like a 3-4 million dollar policy not including cost of living increases. Do people use this as a rule for selecting life insurance? Seems excessive.
My wife doesn’t work outside the home and we have a young family. I have a term policy that is about my annual income x 10. I figure if something happens to me, my wife can invest that lump sum at roughly 8% and maintain our current lifestyle with just barely dipping into the principal.
Regardless of your thoughts on Dave Ramsey as a whole, his stance on life insurance is spot on for your situation. Google his name and life insurance and follow the advice he gives.
I agree with you, seems like over kill to me, but check with someone that knows way more than me about it.
Seems reasonable. Does anyone know what to expect for a premium on something like a million dollar policy? I assume it varies wildly from policy holder to policy holder but maybe I’m wrong.
The only thing I’ve really seen with numbers on it are the flyers our credit union is constantly sending out.
Last edited:
