ot. how much is enough life insurance…

[Coronita]

[quote=ucodegen][quote=flu]
You can always cancel the term life insurance if you no longer need it.
[/quote]
This is what the insurance companies rely on. Sum up the payments with an estimated alternate return and it is no where near what the coverage is(except when the coverage goes over the age boundary of about 73.).

Insurance should only handle liabilities that could not be covered on a death (mortgage would be a good one since the wife would now have to handle raising kids on one income instead of a shared income), but it does not substitute for an IRA, savings or anything like that. Remember, it only pays out on your death.. and in the mean time, you are paying until you get tired of it.[/quote]

The 20 year term life insurance I bought when I was in my early 30ies was a $500k policy for $700/year roughly (it was probably higher than I could have paid, but at the time I wasn’t exactly the fittest person…that’s even before I was diagnosed 2 years later with really screwed up health issues that today would make me uninsurable.

In the grand scheme of things, over the course of 20 years,
I’ll be paying $14,000 for peace of mind, in case something does happen. For most people, you’ll make it past the 20 years term and the insurance policy will expire without a payout. For some of you less fortunate people (inclusive), you might have a brush with death. So yes, in most cases, the insurance company will win and collect your premium without haven’t to pay you out. In any case, I think this is one of the things you don’t want to win and maximize your positive returns on 🙂

If your mortgage is paid off, if your retirement funds/savings/investment funds/ real estate investments/etc are all doing well, you might not need life insurance. For me, it’s the question of whether I want to save the remainder $7000ish in premiums and drop my $500k insurance that hopefully won’t be needed.

[njtosd]

Start also by realizing that $ wont make them “ok without you.” I think sometimes people over insure in the hopes that family members won’t be so sad when they pass away. Grief is the price you pay for having good people in your life. I would have enough to pay off housing and school expenses, assuming your wife would still be able to work.

[scaredyclassic]

probably the insurance wouldnt make things seem good. they would just seem similar, financially.

things might seem bad without me financially though.

kind of like it doesnt feel like we are doing great with the money we make. but if we werent making money, we’d be like, shoot, we are broke.

[scaredyclassic]

just got my exam. bp 93/72. heart rate 59. i think im gonna pass. curious about the cholesterol results as i havent had any meat this year, just fish…

krav maga lowers bp.

[bearishgurl]

[quote=scaredyclassic]just got my exam. bp 93/72. heart rate 59. i think im gonna pass. curious about the cholesterol results as i havent had any meat this year, just fish…

krav maga lowers bp.[/quote]

scaredy, with those kind of stats (and assuming your labwork comes back okay), try to get a level term policy for 20 years (or, in the alternative, coverage until age 70) for $500K to $1M, at whatever premium you feel comfortable with.

NOW is the window of opportunity for you to obtain coverage “while the getting is good.”

After you secure it, you will be freer to retire when you want to without worrying about losing your (guaranteed as long as you are still working) 1 – 3x pay supplemental life policy.

It doesn’t/won’t get better than this. Congrats! You are among the very fortunate (small) minority among your “brethren” and I know you “earned it” … the HARD way!

[bearishgurl]

Back when I turned 50, I obtained a level term policy for 20 years for $250K. I pay only $47 month for it and the premium can never be raised.

I wasn’t in quite as good of shape as scaredy at the time …. but close. My underwriter was John Hancock and they had their nurse submit to them front, side and rear pics of me, as well as taking my height and weight and conducting a battery of labs and other tests on me.

I am in better shape now but have since gotten the bad news (on my medical record) that I possess a gene for an inherited cancer (which I long suspected). Knowledge of this would scare the bej@sus out of any life insurance carrier.

So I am SOL if I want any more coverage. Fortunately, I have only 3/4 of one kid left to assist through college and a small mortgage left on my home (which I could have paid off as early as 2012, but choose not to).

None of us can pick our parents. But we can all do the very best we can with the body we are given.

[an]

[quote=flu]The 20 year term life insurance I bought when I was in my early 30ies was a $500k policy for $700/year roughly (it was probably higher than I could have paid, but at the time I wasn’t exactly the fittest person…that’s even before I was diagnosed 2 years later with really screwed up health issues that today would make me uninsurable.

In the grand scheme of things, over the course of 20 years,
I’ll be paying $14,000 for peace of mind, in case something does happen. For most people, you’ll make it past the 20 years term and the insurance policy will expire without a payout. For some of you less fortunate people (inclusive), you might have a brush with death. So yes, in most cases, the insurance company will win and collect your premium without haven’t to pay you out. In any case, I think this is one of the things you don’t want to win and maximize your positive returns on 🙂

If your mortgage is paid off, if your retirement funds/savings/investment funds/ real estate investments/etc are all doing well, you might not need life insurance. For me, it’s the question of whether I want to save the remainder $7000ish in premiums and drop my $500k insurance that hopefully won’t be needed.[/quote]I totally agree with this. I view life insurance along with many other insurance as a price for a peace of mind. Some people are more willing to roll the dice than other. There’s no right or wrong, just what give you that peace of mind.

I got a $1M 30 year term in my late 20s and it costs me $1k/year. So, I figure, for $30k, I have a $1M piece of mind if something happen to me. I don’t want to win the ROI game on this one. I want to make sure my wife has enough to maintain our current life style with me gone. At $1k/year, that’s ~$3/day. That’s not too crazy. I’m sure most people can find way to save $3/day.

[scaredyclassic]

best price i could find 52 to 72 level term life is 2100/year. for 1 million

i think im worth more than a million but that seems like a good number. the 2100 is slightly painful but i think it could help me relax. maybe i’ll change my directive to DNR. at one million, its fine if i die.

interestingly one of the questions was whetehr i go hot air ballooning. my wife wanted to do that. i told her no way, that thing is a death trap. she mocked me. now i have proof.

[scaredyclassic]

because i am absolutely opposed to any UG student debt for my kids, i feel like I need at least 300k just for that.

[scaredyclassic]

on the other hand, if i were underinsured, and died, it would incentivize my wife to work more

[FlyerInHi]

I don’t have life insurance because I have nobody to give the money to.

But if you buy life insurance early, say in your 20s, is it cheaper and is the term longer?

Also, if you don’t go hot air ballooning now, but go later and die of the balloon falling to the ground, does the insurance pay up?

[scaredyclassic]

[quote=FlyerInHi]I don’t have life insurance because I have nobody to give the money to.

But if you buy life insurance early, say in your 20s, is it cheaper and is the term longer?

Also, if you don’t go hot air ballooning now, but go later and die of the balloon falling to the ground, does the insurance pay up?[/quote]

the question was whetehr i plan to hot air balloon. so if i own a hot air balloon and dont disclose, or had a reservation, or that was something that could be show n to be my thing, i think theyd contest it. but now i think i can go. but i o not want to go.

you buy a term; 10, 20, 30 years. it’s cheaper when you’re young because your odds of living are better. once you hit 60 and up, the hyperbolic curve of rates ascends. that means with every passing year, your luck is running out.

unless you buy whole life; but thats more complex…we spent a few days on that in tax law class. i cannt remember much…theres an investment component and a term insurance component. and something…but theres a definite payout. i dont know…

[bearishgurl]

[quote=scaredyclassic]best price i could find 52 to 72 level term life is 2100/year. for 1 million . . .[/quote]

That’s very competitive, scaredy … a very good rate. I take it you are currently 52 years of age.

My carrier does not insure over the age of 70. As I posted, I have $250K in level-term coverage for 20 yrs at $47 month, taken out at age 50. $47 x 4 = $188 mo or $2256 year. I was eligible for the very best rate they offered at the time.

This is as good as it gets, scaredy. If you are offered this policy, it is issued by a reputable carrier and you are comfortable with a $175 mo premium, then my advice is to take it …. while the getting is good.

[bearishgurl]

[quote=FlyerInHi]I don’t have life insurance because I have nobody to give the money to.

But if you buy life insurance early, say in your 20s, is it cheaper and is the term longer?

Also, if you don’t go hot air ballooning now, but go later and die of the balloon falling to the ground, does the insurance pay up?[/quote]

FIH, I bought term life insurance from age 25 forward (to supplement the 3x pay coverage I had at work, which wasn’t much). When you’re younger, your term life premium typically goes up every five years on a level-term policy (ex: age 20, 25, 30, 35, 40, 45). At age 50, the term ends. If you want a 20-year level term policy (typically from age 50-70), you will need to submit to a physical exam (with the CARRIER’s chosen provider) and sign a release for your medical records, in order to get properly priced. Once all that is completed, you will be offered policy terms and premium levels …. or you will be declined. At age 50, I applied to and kept the same carrier I had since age 25, but you are free to make application with other carriers.

If you answer that you do NOT go hot-air ballooning (or skydiving) on your application for term coverage (your premium was priced for a non-ballooner/skydiver) and then you later die in a ballooning/skydiving accident, your carrier will not pay out. If you answered that you DID go ballooning/skydiving on your app for coverage, the premium offered you will reflect that preference OR your app will be declined (depending upon carrier).

If you don’t have any dependents who will be your heirs, then you probably shouldn’t bother with paying life insurance premiums. Whoever will settle your estate will not be personally liable for any debts you leave behind that your estate cannot pay, and, in any case, life insurance proceeds are generally not part of your estate.

Please consult an estate planning attorney on this issue as I am not giving “legal advice” here.

[Coronita]

[quote=scaredyclassic]best price i could find 52 to 72 level term life is 2100/year. for 1 million

i think im worth more than a million but that seems like a good number. the 2100 is slightly painful but i think it could help me relax. maybe i’ll change my directive to DNR. at one million, its fine if i die.

interestingly one of the questions was whetehr i go hot air ballooning. my wife wanted to do that. i told her no way, that thing is a death trap. she mocked me. now i have proof.[/quote]

You can both go hot air ballooning. You just shouldn’t go together and you shouldn’t go at the same time.

Also, you want to read the fine print about life insurance. Sometimes there are exclusions that state that no benefit will be paid the first 1-2 years you are insured for high risk activities. If you’re wondering why, it was explained to me by the insurance agent that avoid a payout for someone that is suicidal.

As far as life term rates, health being equal. Termed insurance, the monthly payment is cheaper when you are younger, but if you were to buy a policy that ends exactly at the same day (for example when you turn 70), I think you’ll probably end up paying roughly the same.

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