Life Insurance question

[Done-it-again]

If you don’t have long term care insurance, I’d consider that first. Statistically, you are 6 times more likely to become seriously disabled than you are to die. Plus, at 42, it’s still relatively cheap and good for life if you pay the premiums. I’m assuming you have disability insurance already.

Hate to admit it. But I don’t have any insurance besides my medical.

 

[Havasu blue label]

Life ins and blue cross and the flight ins medical and enjoy the family kids grow up fast

 

[rrrr]

That's a good point about helicopter and air ambulance insurance. Our membership with DFW based CareFlite is $150 every four years.

A HEMS ride can cost upwards of $20K. It's cheap insurance.

 

[JD D05]

That's a good point about helicopter and air ambulance insurance. Our membership with DFW based CareFlite is $150 every four years.

A HEMS ride can cost upwards of $20K. It's cheap insurance.

I have that for search and rescue.

 

[badgas]

Hate to admit it. But I don’t have any insurance besides my medical.

Get your term life, you should also have long term disability "LTD" is best purchased via an employer health plan if they offer it. Avoid short term disability. The LTD will pay 60% of your income if you become disabled.

Long Term Care insurance LTC is good to purchase at 60 years of age. The tables show that you are wasting money if you buy it before 60. After 60 the % rises that you might need long term care. Long term care insurance will protect your nest egg if you ever need to go into a nursing home.

Women outlive us boys so what happens without LTC is that we get sick and go into a nursing home we then crack and scramble the nest egg spending several hundred K then we die and leave momma with a mess and she needs to sell the house and move into a trailer in Palmdale.

With these three types if insurance in place you are playing defense John Wooden style and leaving a legacy for your wife and kids that says " I love you " and makes some of the toughest times in life less stressful becasue the money side of it has been eliminated.

I have situation currently in my family ( my FIL ) where I coached him to get LTC and he did not want to pay the premiums because he had money and the house was paid for. A stroke has now left him in a very bad spot where a skilled nursing home might be in order and my MIL will need to sell the famliy home to pay for it. His pension is not enough to cover everything but he makes too much for govt nursing home and to be honest who wants that ?

The take away is ....have your proper insurance folks.

 

[btaco35]

Laddered term as @ArizonaKevin mentioned, coupled with a fiduciary based FA is sound advice.

WL, GUL, IUL, etc is garbage that insurance salesman are conditioned to sell. Compare commissions on a guaranteed policy vs. a term policy. Follow the $$

Edit: also take the time to understand surrender charges and guaranteed returns (vs potential or hypothetical) on guaranteed insurance policies before you burn those Benjamin’s

 

[JD D05]

Get your term life, you should also have long term disability "LTD" is best purchased via an employer health plan if they offer it. Avoid short term disability. The LTD will pay 60% of your income if you become disabled.

Long Term Care insurance LTC is good to purchase at 60 years of age. The tables show that you are wasting money if you buy it before 60. After 60 the % rises that you might need long term care. Long term care insurance will protect your nest egg if you ever need to go into a nursing home.

Women outlive us boys so what happens without LTC is that we get sick and go into a nursing home we then crack and scramble the nest egg spending several hundred K then we die and leave momma with a mess and she needs to sell the house and move into a trailer in Palmdale.

With these three types if insurance in place you are playing defense John Wooden style and leaving a legacy for your wife and kids that says " I love you " and makes some of the toughest times in life less stressful becasue the money side of it has been eliminated.

I have situation currently in my family ( my FIL ) where I coached him to get LTC and he did not want to pay the premiums because he had money and the house was paid for. A stroke has now left him in a very bad spot where a skilled nursing home might be in order and my MIL will need to sell the famliy home to pay for it. His pension is not enough to cover everything but he makes too much for govt nursing home and to be honest who wants that ?

The take away is ....have your proper insurance folks.

Funny you talk about leaving a legacy but don't believe and think any form of permanent insurance is bad. A few other pieces of bad info sprinkled in some good.

 

[JD D05]

Laddered term as @ArizonaKevin mentioned, coupled with a fiduciary based FA is sound advice.

WL, GUL, IUL, etc is garbage that insurance salesman are conditioned to sell. Compare commissions on a guaranteed policy vs. a term policy. Follow the $$

Edit: also take the time to understand surrender charges and guaranteed returns (vs potential or hypothetical) on guaranteed insurance policies before you burn those Benjamin’s

There is nothing wrong taking a term only approach if that fits your needs and wants. Permanent insurance can also check boxes for people that have the need for all kinds of reasons. That's why millions of policies are sold every year and some times it isn't more commission. I have lots of clients that have to re up term insurance multiple times and usually at a much higher age and rate class due to age and health when a GUL at a young age would have been paid up with an actually ROI not just renting.

 

[badgas]

Funny you talk about leaving a legacy but don't believe and think any form of permanent insurance is bad. A few other pieces of bad info sprinkled in some good.

By Leaving a legacy I meant

1) Having a solid investment nest egg left for my wife and kids 401K , IRA's , Rental real estate etc.

2) A nice term life payout that is 10x the household income.

3) A paid off home.

4) A long term care policy that if bad things happen the first 3 don't implode.

This is just how I live my life and how I coach people on setting up their life.

We are not going to agree on this because you sell the stuff and that's fine. I don't judge you I just judge the product like Ford vs Chevy, Coors vs Bud etc. Based on your Avatar Bud has the upper hand : )

I'm sure we both agree on FJB and we agree that really cold beer is better than room temp ?

We agree that God is better than the Devil ? We agree that biological males are males and biological females are females ?

We agree that bacon is better than tofu ?

We just don't agree on life Insurance.

 

[JD D05]

By Leaving a legacy I meant

1) Having a solid investment nest egg left for my wife and kids 401K , IRA's , Rental real estate etc.

2) A nice term life payout that is 10x the household income.

3) A paid off home.

4) A long term care policy that if bad things happen the first 3 don't implode.

This is just how I live my life and how I coach people on setting up their life.

We are not going to agree on this because you sell the stuff and that's fine. I don't judge you I just judge the product like Ford vs Chevy, Coors vs Bud etc. Based on your Avatar Bud has the upper hand : )

I'm sure we both agree on FJB and we agree that really cold beer is better than room temp ?

We agree that God is better than the Devil ? We agree that biological males are males and biological females are females ?

We agree that bacon is better than tofu ?

We just don't agree on life Insurance.

We don't disagree really. It comes down to a lot of factors and what a person needs or wants. But it is bit ignorant to put everyone in the same box as you for life insurance needs and just plug your ears and assume that for everyone.

So here is a scenario and this happens all the time. Let's say a 30 year old buys a 20 year term policy. At age 45 after the conversion period had expired gets cancer but still has some significant debt. The guy is most likely fucked or is going to pay a massive premium if he can get a policy at all over some GI policy for 25K. Some people usually with money see that potential and say ya I want a permanent solution.

Another scenario. My parents own our company when they die especially if early it will have financial impact on me. At age 55 I priced out a 100k term and permanent on both them. The price doubled from 50 a month to just over 100 a month for the GUL. I would much rather take the ROI on an extra 100 a month combined knowing no matter what changes or doesn't change past the 10 or 20 years a term policy expires I have the policy. Turns out my dad now at 63 would be tough to get insured.

 

[mesquito_creek]

Warren Buffett says never invest in a business you don't understand…. I am to dumb to understand whole life or universal life so I went with term when I was younger.

It expired a few years back and that was the end of it. My kids are adults and our investment portfolio made it obsolete.

 

[badgas]

Warren Buffett says never invest in a business you don't understand…. I am to dumb to understand whole life or universal life so I went with term when I was younger.

It expired a few years back and that was the end of it. My kids are adults and our investment portfolio made it obsolete.

This is the plan

 

[Havasu blue label]

So you think the 401 is going to keep up with California cost of living. Taxed taxed and taxed . Cash in the bank rentals and primary then play with your 401 and cash again and then cash and no bills

 

[Havasu blue label]

I have had a whole life policy since I was 18 today 56 and it’s 1 million my wife and 3 kids are beneficiaries

 

[Spudsbud]

TERM TERM TERM !
You die, she gets a check. Thats it. Nothimg else. Any investment bullshit is them trying to scam you.
Shop around.
TERM.
Ive had 500k for 29 years. Expires next.year. Wont be renewing. Cant.
Cost me ( + hers too) $650.00 a year. Each.

 

[JD D05]

I have had a whole life policy since I was 18 today 56 and it’s 1 million my wife and 3 kids are beneficiaries

Is that policy paid up?

 

[Havasu blue label]

No it cost me about 500 per year

 

[Deckin Around]

Not sure if this has been said:
Just like auto insurance, Shop them all then go to AAA. Some don't realize this is a non-profit company with good service and rates. If they did commercial policies and didn't change my RV tow policy, I'd like them even more. You will appreciate the rate savings. They were 1/2 my Farmers policy quote for the same life coverage 1 mil policy, I'm 41

 

[JD D05]

No it cost me about 500 per year

That's still awesome! 41$ a month for a policy that will pay out at some point.

 

[OldSchoolBoats]

Wife and I both have 30 year term policies with AAA. Got them at the same time, her age 27 and me age 28. We both have $500k and for both it is $76 / month.

 

[Havasu blue label]

It looks nice on paper

 

[Havasu blue label]

I won’t get to enjoy it kids and grandkids and the wife

 

[Mrs. Riley1]

We’re in the process of signing up for life insurance now. We went with a 20 year term through Zander. We are a little late to the game. We’re late 30s/ early 40s so 20 years puts us right at retirement.

I did 500k for myself. I’m a stay at home mom and I homeschool my son. If something were to happen to me, my husband would have to hire a nanny and put him in private school. There would probably be enough left over for a new boat as well Mine is $33 a month.

For my husband I did $1.5mil.
His requires an exam because he could stand to lose a couple pounds lol. We have to wait for that to determine how much his will be.

 

[steamin rice]

My wife and I both did 20yr term policies through one-a-day back in 2013 - The idea is to have something in place to help if needed while our kids were still young and dependent on us, and then our savings/investments would be sufficient to cover financial needs after the 20 year term is up. So far so good on the plan. I have 11 years left on the term life insurance, and financially should be able to retire in less than 10 years as long as the markets don't get too ugly.

 

[Done-it-again]

We’re in the process of signing up for life insurance now. We went with a 20 year term through Zander. We are a little late to the game. We’re late 30s/ early 40s so 20 years puts us right at retirement.

I did 500k for myself. I’m a stay at home mom and I homeschool my son. If something were to happen to me, my husband would have to hire a nanny and put him in private school. There would probably be enough left over for a new boat as well Mine is $33 a month.

For my husband I did $1.5mil.
His requires an exam because he could stand to lose a couple pounds lol. We have to wait for that to determine how much his will be.

Sounds like we are in the same boat......(pun)

 

[River918]

If you have a retirement that your spouse will continue to draw if you die, go term. I got 20-year, 1,000,000 term 13 years ago that will expire 5 years into retirement for $550.00 a year. Wife 20-year, $500.000 term is $250.00 a year. Went through e-quote.com… quick and painless