Can someone give me Life Insurance Advice? - Page 2 - TigerDroppings.com

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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13471 posts

re: Can someone give me Life Insurance Advice?


quote:

The only reason to get insurance on a child is for funeral expenses if u cannot afford that out of pocket..




Could not be more inaccurate.






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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13471 posts

re: Can someone give me Life Insurance Advice?


quote:

Don't let anybody talk you into a whole life, universal life, or decreasing term policy.



I'll agree with the universal and decreasing term. But let's not get into that conversation here.

Do you have a term policy on your kids?






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adavis
LSU Fan
Member since Aug 2007
3389 posts

re: Can someone give me Life Insurance Advice?


Permanent policy on my kids-simply because I pay on it for 10 years and they own it for life. It increases to $5 per month when they turn 10. They can increase it 6 times during their lifetime without proving insurability, so I think it's totally worth it.





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wasteland
LSU Fan
ya mother
Member since Apr 2011
1934 posts

re: Can someone give me Life Insurance Advice?


quote:

The only reason to get insurance on a child is for funeral expenses if u cannot afford that out of pocket..




Could not be more inaccurate.




exactly. I know people that have filed bankruptcy after a child dies. When the unthinkable happens and a child passes away, you are not going back to work right away.






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Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
28927 posts
 Online 

re: Can someone give me Life Insurance Advice?


quote:

I'm 28 and my son is 2

No plans to have more kids, but it's always possible I suppose



You're right in the sweet spot for a 30-year term - I would shoot for about 10x your projected average salary over the next 30 years, and if that's $1 million and you can afford it, so be it.

I assume you have no group available where you work? Anyway, same rule goes for your wife, although you can go as low as about 8x her projected average for 30 year term - that gives you the most protection at the least cost (except group insurance.)






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wasteland
LSU Fan
ya mother
Member since Apr 2011
1934 posts

re: Can someone give me Life Insurance Advice?


plan your own insurance and throw group in on top as extra. I would never depend on group insurance for my life insurance planning





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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13471 posts

re: Can someone give me Life Insurance Advice?





I was about to say. Unfortunately I've seen people buy term 20 policies on their kid. I want to slap them.






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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13471 posts

re: Can someone give me Life Insurance Advice?


Agreed. Group very often is taxable too, o watch out for that.





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wasteland
LSU Fan
ya mother
Member since Apr 2011
1934 posts

re: Can someone give me Life Insurance Advice?


quote:

GoCrazyAuburn


you have sound advice. i'm in the industry and agree with most of what you say. there's a lot of misinformation out there regarding insurance planning.







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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13471 posts

re: Can someone give me Life Insurance Advice?


Thanks man. I am as well, so I know how you feel. Unfortunately much of the bad info out there spurred from bad agents/companies selling terrible stuff, but it is the nature of the beast. Hopefully the small bits of info I've shared on this bored have helped some people.





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Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
28927 posts
 Online 

re: Can someone give me Life Insurance Advice?


quote:

plan your own insurance and throw group in on top as extra. I would never depend on group insurance for my life insurance planning



Whatever - I have ~$1 million in group, for about $40 per month. But, I'm in a relatively unusual situation.






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wasteland
LSU Fan
ya mother
Member since Apr 2011
1934 posts

re: Can someone give me Life Insurance Advice?


quote:

Ace Midnight


To each his own.






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Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
28927 posts
 Online 

re: Can someone give me Life Insurance Advice?


quote:

To each his own.



To be fair, I do recommend everyone carry term insurance - I just happen to have access to 2 very good group insurance plans.






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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13471 posts

re: Can someone give me Life Insurance Advice?


Does your employer pay any of the premium for that term?





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AUtigerNOLA
Auburn Fan
New Orleans, LA
Member since Apr 2011
9603 posts

re: Can someone give me Life Insurance Advice?


I have 30 year term $1mil for soon to be wife, $500k for me, plus long term disability insurance all for $80 a month.





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Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
28927 posts
 Online 

re: Can someone give me Life Insurance Advice?


quote:

Does your employer pay any of the premium for that term?



Probably. My civilian job (Federal government) has an escalating rate for the group, but it's tiered by age category. SGLI for a military reservist is flat and always been well below term rates. Both are tied to jobs, but SGLI can roll into VGLI when I retire. I should have bought term about 8 to 10 years ago, but I was flat broke.

I should buy term now - like 10 (I'm 45), but I'm flat broke.



This post was edited on 2/19 at 10:15 pm


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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13471 posts

re: Can someone give me Life Insurance Advice?


Gotcha. Military and government stuff works a little different sometimes, but usually for group stuff, if TE employer pays any of TE premiums and tax deducts them, the death benefit over $50K iirc is taxable to the beneficiary (that number may have changed recently, but I believe it is still the same. )





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wasteland
LSU Fan
ya mother
Member since Apr 2011
1934 posts

re: Can someone give me Life Insurance Advice?


I'm currently dealing with a couple vgli clients that were shocked at the escalating premiums at age 55. Get some term man.





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6128 posts

re: Can someone give me Life Insurance Advice?


Just get 1m term on both of you for 30. Doing it under 30 should save you a good bit. We didn't have our first until 32, still only about 1500 through Hartford

You'll sleep better



This post was edited on 2/20 at 6:54 am


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Crimsonsaint24
Alabama Fan
Alabama
Member since Jul 2011
549 posts

re: Can someone give me Life Insurance Advice?


I have my life insurance policy through Alfa for 250,000 I pay 123 a quarter but I get almost all of it back when the policy runs out so its almost like a savings account





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