Opinions requested on life insurance

[HLS]

Most important factor is your age/health today.
$1M term may not be enough with inflation.
A 20 year term isn’t that expensive in your 20’s or 30’s. At least cover the kids through college and pay off a mortgage.(declining balance)

If you have are able to create a part time schedule C business, you may be able to deduct the cost of life insurance as a business expense.
(**Consult your tax advisor)

Also, do not discount the value of your wife’s contribution. If something happened to her and you had to hire help to replace her to take care of kids etc while you were making a living, it wouldn’t be cheap. Consider a $500K policy on her.
If you are young, it is cheap insurance.

Even in mid 40’s and decent health, $1M 20 yr term
is around $1500 a year, level premium. When you are younger it’s much cheaper.

Pay your premiums annually rather than monthly or quarterly and you will usually save a bit on the premium.
Find an agent that you like, the pricing is controlled by the insurance company, but the agent gets a nice commission, I think it may be equal to the annual premium, with possible residuals.

Stick with a major well rated company and hope that they are around longer than you are. 😉

Don’t forget that you pay for most insurance policies hoping that you will never need them.
With a term policy, this one is no exception!

The amount you need boils down to how nice you want to be to her next husband, and if you know the joke, don’t worry about your golf clubs as he wont be using them because he is left handed.

[Raybyrnes]

The average life insurance policy will lapse after 4 years. I would consider evaluating the possibility of laddering a string of term policies. By this I mean get a 250 K policy (or whatever amount you choose) for 10 years and a 250 for 20 years. That gives you 500k of insurance over the next 10 years and at the end of 10 years look to take out 500 K at that point which would give you 750K for years 10 through 20 and 500 K for years 20 through 30. At the end of that time kids through school and mortgage may be paid off and you have less need for insurance. Make sure the policies are non-cancellable and guaranteed reknewable.

Because you are using the less expensive term policies you should have a greater amount to pack away and with changes to the IRA limits consider putting fully funding the IRA and converting to a Roth which you would need to do because of your income bracket.

If life happens and something happens that requires you drop a policy you still may be able to have some insurance in place using this method.

[Raybyrnes]

The average life insurance policy will lapse after 4 years. I would consider evaluating the possibility of laddering a string of term policies. By this I mean get a 250 K policy (or whatever amount you choose) for 10 years and a 250 for 20 years. That gives you 500k of insurance over the next 10 years and at the end of 10 years look to take out 500 K at that point which would give you 750K for years 10 through 20 and 500 K for years 20 through 30. At the end of that time kids through school and mortgage may be paid off and you have less need for insurance. Make sure the policies are non-cancellable and guaranteed reknewable.

Because you are using the less expensive term policies you should have a greater amount to pack away and with changes to the IRA limits consider putting fully funding the IRA and converting to a Roth which you would need to do because of your income bracket.

If life happens and something happens that requires you drop a policy you still may be able to have some insurance in place using this method.

[Raybyrnes]

The average life insurance policy will lapse after 4 years. I would consider evaluating the possibility of laddering a string of term policies. By this I mean get a 250 K policy (or whatever amount you choose) for 10 years and a 250 for 20 years. That gives you 500k of insurance over the next 10 years and at the end of 10 years look to take out 500 K at that point which would give you 750K for years 10 through 20 and 500 K for years 20 through 30. At the end of that time kids through school and mortgage may be paid off and you have less need for insurance. Make sure the policies are non-cancellable and guaranteed reknewable.

Because you are using the less expensive term policies you should have a greater amount to pack away and with changes to the IRA limits consider putting fully funding the IRA and converting to a Roth which you would need to do because of your income bracket.

If life happens and something happens that requires you drop a policy you still may be able to have some insurance in place using this method.

[Raybyrnes]

The average life insurance policy will lapse after 4 years. I would consider evaluating the possibility of laddering a string of term policies. By this I mean get a 250 K policy (or whatever amount you choose) for 10 years and a 250 for 20 years. That gives you 500k of insurance over the next 10 years and at the end of 10 years look to take out 500 K at that point which would give you 750K for years 10 through 20 and 500 K for years 20 through 30. At the end of that time kids through school and mortgage may be paid off and you have less need for insurance. Make sure the policies are non-cancellable and guaranteed reknewable.

Because you are using the less expensive term policies you should have a greater amount to pack away and with changes to the IRA limits consider putting fully funding the IRA and converting to a Roth which you would need to do because of your income bracket.

If life happens and something happens that requires you drop a policy you still may be able to have some insurance in place using this method.

[Raybyrnes]

The average life insurance policy will lapse after 4 years. I would consider evaluating the possibility of laddering a string of term policies. By this I mean get a 250 K policy (or whatever amount you choose) for 10 years and a 250 for 20 years. That gives you 500k of insurance over the next 10 years and at the end of 10 years look to take out 500 K at that point which would give you 750K for years 10 through 20 and 500 K for years 20 through 30. At the end of that time kids through school and mortgage may be paid off and you have less need for insurance. Make sure the policies are non-cancellable and guaranteed reknewable.

Because you are using the less expensive term policies you should have a greater amount to pack away and with changes to the IRA limits consider putting fully funding the IRA and converting to a Roth which you would need to do because of your income bracket.

If life happens and something happens that requires you drop a policy you still may be able to have some insurance in place using this method.

[HLS]

Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?

[HLS]

Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?

[HLS]

Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?

[HLS]

Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?

[HLS]

Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?

[Coronita]

[quote=HLS]Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?[/quote]

Alternatively, you can buy more than one policy, each being smaller amounts, versus 1 large policy. Total upfront premium costs for all policies would be more than a single larger policy, BUT then you can cancel one of your policies as your financial position changes. So for instance rather than buy 1 $1million, buy two $500k, and cancel one if you have built up $500k in reserves. Also insures yourself against an insurer if they go belly up (although unlikely)

[Coronita]

[quote=HLS]Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?[/quote]

Alternatively, you can buy more than one policy, each being smaller amounts, versus 1 large policy. Total upfront premium costs for all policies would be more than a single larger policy, BUT then you can cancel one of your policies as your financial position changes. So for instance rather than buy 1 $1million, buy two $500k, and cancel one if you have built up $500k in reserves. Also insures yourself against an insurer if they go belly up (although unlikely)

[Coronita]

[quote=HLS]Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?[/quote]

Alternatively, you can buy more than one policy, each being smaller amounts, versus 1 large policy. Total upfront premium costs for all policies would be more than a single larger policy, BUT then you can cancel one of your policies as your financial position changes. So for instance rather than buy 1 $1million, buy two $500k, and cancel one if you have built up $500k in reserves. Also insures yourself against an insurer if they go belly up (although unlikely)

[Coronita]

[quote=HLS]Hi Ray,, interesting strategy but I think that laddering life insurance is pretty risky in itself as you may not qualify for a policy 10 years down the road at all so it also depends on if you want to gamble with coverage, and it’s more expensive to buy the older you get.
Premiums are likely to rise in the future as well.
20 years of coverage starting today may not cost much more than 10 years of coverage starting in 10 years.

Perhaps it also depends on whether you plan on winning or losing the bet with the life insurance company.

If you win, the return on a policy is far better than money in a retirement account. If you lose the insurance company gets to keep your money but you are still around to talk about how much you wasted.

The only reason term policies lapse is because people stop paying the premiums.

Is the goal to allow the survivor to live a similar lifestyle or force them to scale down as suggested above ?[/quote]

Alternatively, you can buy more than one policy, each being smaller amounts, versus 1 large policy. Total upfront premium costs for all policies would be more than a single larger policy, BUT then you can cancel one of your policies as your financial position changes. So for instance rather than buy 1 $1million, buy two $500k, and cancel one if you have built up $500k in reserves. Also insures yourself against an insurer if they go belly up (although unlikely)

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