Opinions requested on life insurance

[Raybyrnes]

HLS
There are other consideration that would need to be considered with any strategy. Family history, life expectancy etc. I think you make a good point about the comparison and cost of coverage which I would have went into but there is only so much I wanted to type.

I may argue that term life insurance costs have actually gone down and as life expectancy going up actuarial tables should adjust to lower costs. This can be debated. Many with term policies who ahve had the policies for over 1 years shoud be checking out costs and rates as they ahve gone down substantially.

I break down the purchasing of life insurance into increments as far too often people address it once and then try and forget about it whereas I0 believe it should be reviewed every 4 or 5 years minimum. You can be both overinsured and underinsured and my method can give you some flexibility to be on target.

I have nothing against other argument for permenant whole life policies. There are some decent strategies that can be used there aswell but if you are looking to send as little as possible on premium I have given someone something to consider.

[CA renter]

[quote=HLS]$1 Million 20 year term. Preferred MALE in CA
starting at
age 25 $425 a year
age 30 $438 a year
age 35 $450 a year
age 40 $645 a year

At age 25 committing to paying $8,500 over 20 years
for $1 million in coverage doesn’t sound crazy.
The odds are you will waste the money but provide security to your family “just in case”

If one had to choose, I’d say that protecting your family is more important than HBO or alcohol or other frivolous expenses.
There might even be a way to have your employer pay your premium with pre-tax dollars. Less than $40 a month.

$100K policy is $110 a year.
$500K policy is $250 a year.
Lower coverage seems like a poor choice unless that’s all you can really afford.[/quote]

Good advice.

Personally, I’d insure the husband/FTE at $1MM and the wife at $500K — term life, 20 year policies. If you want to add anything to that, it’s just gravy, but that would be my minimum in your situation. Just MHO.

Also, there is another way to get around the issue flu mentioned through trusts. Check with an attorney regarding QTIP trusts:

http://www.finweb.com/retirement/qtip-trusts.html

We have a trust where the assets are split at the time of death and the assets of the deceased go into a separate trust with the living spouse as executor and the children as beneficiaries.

Just something to consider.

[CA renter]

[quote=HLS]$1 Million 20 year term. Preferred MALE in CA
starting at
age 25 $425 a year
age 30 $438 a year
age 35 $450 a year
age 40 $645 a year

At age 25 committing to paying $8,500 over 20 years
for $1 million in coverage doesn’t sound crazy.
The odds are you will waste the money but provide security to your family “just in case”

If one had to choose, I’d say that protecting your family is more important than HBO or alcohol or other frivolous expenses.
There might even be a way to have your employer pay your premium with pre-tax dollars. Less than $40 a month.

$100K policy is $110 a year.
$500K policy is $250 a year.
Lower coverage seems like a poor choice unless that’s all you can really afford.[/quote]

Good advice.

Personally, I’d insure the husband/FTE at $1MM and the wife at $500K — term life, 20 year policies. If you want to add anything to that, it’s just gravy, but that would be my minimum in your situation. Just MHO.

Also, there is another way to get around the issue flu mentioned through trusts. Check with an attorney regarding QTIP trusts:

http://www.finweb.com/retirement/qtip-trusts.html

We have a trust where the assets are split at the time of death and the assets of the deceased go into a separate trust with the living spouse as executor and the children as beneficiaries.

Just something to consider.

[CA renter]

[quote=HLS]$1 Million 20 year term. Preferred MALE in CA
starting at
age 25 $425 a year
age 30 $438 a year
age 35 $450 a year
age 40 $645 a year

At age 25 committing to paying $8,500 over 20 years
for $1 million in coverage doesn’t sound crazy.
The odds are you will waste the money but provide security to your family “just in case”

If one had to choose, I’d say that protecting your family is more important than HBO or alcohol or other frivolous expenses.
There might even be a way to have your employer pay your premium with pre-tax dollars. Less than $40 a month.

$100K policy is $110 a year.
$500K policy is $250 a year.
Lower coverage seems like a poor choice unless that’s all you can really afford.[/quote]

Good advice.

Personally, I’d insure the husband/FTE at $1MM and the wife at $500K — term life, 20 year policies. If you want to add anything to that, it’s just gravy, but that would be my minimum in your situation. Just MHO.

Also, there is another way to get around the issue flu mentioned through trusts. Check with an attorney regarding QTIP trusts:

http://www.finweb.com/retirement/qtip-trusts.html

We have a trust where the assets are split at the time of death and the assets of the deceased go into a separate trust with the living spouse as executor and the children as beneficiaries.

Just something to consider.

[CA renter]

[quote=HLS]$1 Million 20 year term. Preferred MALE in CA
starting at
age 25 $425 a year
age 30 $438 a year
age 35 $450 a year
age 40 $645 a year

At age 25 committing to paying $8,500 over 20 years
for $1 million in coverage doesn’t sound crazy.
The odds are you will waste the money but provide security to your family “just in case”

If one had to choose, I’d say that protecting your family is more important than HBO or alcohol or other frivolous expenses.
There might even be a way to have your employer pay your premium with pre-tax dollars. Less than $40 a month.

$100K policy is $110 a year.
$500K policy is $250 a year.
Lower coverage seems like a poor choice unless that’s all you can really afford.[/quote]

Good advice.

Personally, I’d insure the husband/FTE at $1MM and the wife at $500K — term life, 20 year policies. If you want to add anything to that, it’s just gravy, but that would be my minimum in your situation. Just MHO.

Also, there is another way to get around the issue flu mentioned through trusts. Check with an attorney regarding QTIP trusts:

http://www.finweb.com/retirement/qtip-trusts.html

We have a trust where the assets are split at the time of death and the assets of the deceased go into a separate trust with the living spouse as executor and the children as beneficiaries.

Just something to consider.

[CA renter]

[quote=HLS]$1 Million 20 year term. Preferred MALE in CA
starting at
age 25 $425 a year
age 30 $438 a year
age 35 $450 a year
age 40 $645 a year

At age 25 committing to paying $8,500 over 20 years
for $1 million in coverage doesn’t sound crazy.
The odds are you will waste the money but provide security to your family “just in case”

If one had to choose, I’d say that protecting your family is more important than HBO or alcohol or other frivolous expenses.
There might even be a way to have your employer pay your premium with pre-tax dollars. Less than $40 a month.

$100K policy is $110 a year.
$500K policy is $250 a year.
Lower coverage seems like a poor choice unless that’s all you can really afford.[/quote]

Good advice.

Personally, I’d insure the husband/FTE at $1MM and the wife at $500K — term life, 20 year policies. If you want to add anything to that, it’s just gravy, but that would be my minimum in your situation. Just MHO.

Also, there is another way to get around the issue flu mentioned through trusts. Check with an attorney regarding QTIP trusts:

http://www.finweb.com/retirement/qtip-trusts.html

We have a trust where the assets are split at the time of death and the assets of the deceased go into a separate trust with the living spouse as executor and the children as beneficiaries.

Just something to consider.

[CA renter]

BTW, congratulations on the soon-to-be new addition! 🙂

[CA renter]

BTW, congratulations on the soon-to-be new addition! 🙂

[CA renter]

BTW, congratulations on the soon-to-be new addition! 🙂

[CA renter]

BTW, congratulations on the soon-to-be new addition! 🙂

[CA renter]

BTW, congratulations on the soon-to-be new addition! 🙂

[garysears]

Looks like I’m in the minority with my comfort being underinsured. I have tried to stay away from buying a policy that would mean my wife never would have to work again. Not because I dislike her. Maybe I really am too cheap and should consider more.

If I do get more I won’t tell her though since I don’t want to get knocked off. I can laugh about it but really, how well do I know her? Certainly for 2 million she wouldn’t have to worry about my stingy ways ever again. Even for 1 million she would probably be tempted.

[garysears]

Looks like I’m in the minority with my comfort being underinsured. I have tried to stay away from buying a policy that would mean my wife never would have to work again. Not because I dislike her. Maybe I really am too cheap and should consider more.

If I do get more I won’t tell her though since I don’t want to get knocked off. I can laugh about it but really, how well do I know her? Certainly for 2 million she wouldn’t have to worry about my stingy ways ever again. Even for 1 million she would probably be tempted.

[garysears]

Looks like I’m in the minority with my comfort being underinsured. I have tried to stay away from buying a policy that would mean my wife never would have to work again. Not because I dislike her. Maybe I really am too cheap and should consider more.

If I do get more I won’t tell her though since I don’t want to get knocked off. I can laugh about it but really, how well do I know her? Certainly for 2 million she wouldn’t have to worry about my stingy ways ever again. Even for 1 million she would probably be tempted.

[garysears]

Looks like I’m in the minority with my comfort being underinsured. I have tried to stay away from buying a policy that would mean my wife never would have to work again. Not because I dislike her. Maybe I really am too cheap and should consider more.

If I do get more I won’t tell her though since I don’t want to get knocked off. I can laugh about it but really, how well do I know her? Certainly for 2 million she wouldn’t have to worry about my stingy ways ever again. Even for 1 million she would probably be tempted.

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