Request for the crowd

[USMCBunny]

Folks – I dont post often but I am hoping there is someone in the group that is very smart on the investing aspects of life insurance, or just on life insurance in general and is willing to donate some of that experience in my direction. Any takers?

[lendingbubblecontinues]

I know life insurance and investments pretty well (10+ years of study/experience)…what is your question/concern?

[USMCBunny]

Lendingbubbleco…

Some background – I am military here at Miramar, about 3 weeks from my third trip to the sandbox. Just found out my wife and I finally hit the jackpot and she is pregnant.

I am mid 30’s, wife is same, our combined income is around 200K annual. I have to plan for the contingency that she may decide not to work so I consider my future income to be less than 1/2 of what it is now. About 200K in savings and mid-term investments (gold funds / tax free bond funds). Another combined 100K in Roth IRA’s for both of us. Renting a house, with no intent to buy for a couple years. My current insurance is SGLI (250K coverage) and a stupid 50K WRLOC universal life investment program that is an absolute dog. (If I had just buried the 100 bucks a month in the backyard over the last 8 years it would be worth twice as much). I will be able to retire in 5 years (regular military pension) follow on career TBD. Wife is vested for a small pension (small change right now).

So it’s obvious I need more insurance to protect my new family. My questions.

1) Should I be looking at Term / whole / universal? I admit the failed WRLOC investment has turned me off a bit to Insurance as an investment vehicle. Am I missing something – our should I be buying Term and investing for retirement elsewhere?
2) I fly jets, in combat – apparently my “risk level” is sort of high. Though I do most of my stuff thru USAA, our IRA’s are thru METLIFE, and I am considering life insurance thru them. They want to attach a $5.00 per 1,000,000 annual fee to whatever program I purchase. Thats 5K a year just to get in the door. Is this normal? Can I do better?
I know asking for investment “advice” is sort of frowned upon here – but I would like to hear your thoughts on this scenario. Anybody else would like to pitch in – I have thick skin.

Thanks

Flywestcoast

[USMCBunny]

Sorry – the METLIFE rider is $5.00 per 1,000.00 unit

Flywestcoast

[Anonymous]

Hopefully you are still here –

I don’t sell insurance, just a “average joe” that did lot’s of research. Questions that come to mind are how much and for how long to get insurance for. Term is the cheapest, level term over a long period is a good deal (very small comission for the broker). Whole life & Universal pays high comission first couple of years (high surrender charges)to the broker, poor investment to grow money tax defer (comes out at the end regular short term gains, not capital gains) plus % is rather low. Yes you get to “borrow” your own money, but loans from other places also is tax free.
***Really good for someone max out on retirement plans, makes too much money and in AMT / high tax bracket land.

Permannet Ins. is possable also but more $$$$.

Search the web and / or find a broker that has access to many different insurance co. to compare policies, take the time to REALLY understand them AND the true commsions buying. Since you fly defneding the free world check polcies for war & non war related deaths. See what other flyers get. Make sure you ARE COVERED flying.

Hold this helps –

ML

[equalizer]

I can pass name of insurance broker I know , but I think armed services won’t be covered for best rates. Most of the objective financial advisor (bobbrinker.com, consumerreports, vanguard, etc) will tell you to stick to term, unless there are huge tax considerations.
Your best bet is to use USAA, they have excellent service and rates and will likely cover all. You can give Simon a call and he’ll give you the scoop.

Simon Maierhofer, Founder
http://www.lifequotecenter.com
888-294-4900

[Author]

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