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re: Permanent Life Insurance
Posted on 5/19/13 at 10:04 pm to dwr353
Posted on 5/19/13 at 10:04 pm to dwr353
I wouldn't necessarily say that low death benefit of whole life was protecting his family well, other than covering funeral costs and the cost of briefly adjusting to life without him.
By comparison, my term life policy has a death benefit of $1,200,000 and costs $75/month.
By comparison, my term life policy has a death benefit of $1,200,000 and costs $75/month.
1
Posted on 5/19/13 at 10:15 pm to Bayou Tiger
I was not suggesting that this is all the coverage he needs. This can only be done after careful consideration of his situation. I only was commenting on this policy. For most people, the best decision is a combination of permanent life ins and term. If all you can afford is term, good, buy plenty. Just make sure it is convertible if you want some permanent later, and that you buy from a mutual company(pays dividends). I commend you for loving your family and taking steps to provide for them.
Posted on 5/19/13 at 10:30 pm to dwr353
I am a female and the when I bought the policy I was single and just put my mother as the beneficiary. Changed it to my two kids after I married and had kids, who are now grown and are still the beneficiaries. It will just be extra spending money for them.
Posted on 5/19/13 at 10:46 pm to TigerAlum1982
Tiger, I would add that you are paying 18 for 36000 at age 55(as I recall). If you wanted to purchase 36000 at your current age, you would pay considerably more(if you medically qualify). You did well, keep your policy. By the way, your daughters will get the proceeds income tax free(unless your estate is subject to estate taxes).
Posted on 5/20/13 at 12:07 am to dwr353
You must sell life insurance. Am I correct in that assumption?
Posted on 5/20/13 at 1:58 am to TigerAlum1982
nm
This post was edited on 5/20/13 at 3:51 am
Posted on 5/20/13 at 5:04 am to dwr353
quote:And this is the statement from life insurance salesmen that always offends me.
If all you can afford is term, good, buy plenty.
Sure, I could "afford" to pay $600/month permanent/whole premiums instead of $75/month term premiums for the same $1,200,000 policy value. But I didn't get to this point in life by making dumb decisions like that.
Some otherwise intelligent people get tricked into these scenarios and end up with ridiculous premiums and/or inadequate death benefit for their families. It's a shame.
This post was edited on 5/20/13 at 5:12 am
Posted on 5/20/13 at 6:44 am to Bayou Tiger
I am a multiline agent and life ins is one line I sell. It is by no means my sole income stream. I hesitated to comment because I have noticed in the past that this board is full of experts in everything. They see things from only their point of view. I was commenting on one specific policy(from a company I do not represent). Buy what you want, I did not intend to offend you. I thought I complimented your planning.
Posted on 5/20/13 at 10:20 am to Bayou Tiger
I don't understand why you keep arguing as if the two options are mutually exclusive.
Posted on 5/20/13 at 11:20 am to dwr353
Normally I wouldn't say anything at all except for the comment "if all you can afford is term" as if purchasing term alone is for poor people or people of means who just don't get it.
There may be some good reasons to get permanent and its ilk, but the reasoning should revolve around the specific benefits for that individual, and not just that they "can afford it". This is the kind of thing that gives life insurance brokers a bad name.
You probably didn't mean to come across that way, but it just struck a nerve early on a Monday morning. My apologies if I misjudged your intent.
There may be some good reasons to get permanent and its ilk, but the reasoning should revolve around the specific benefits for that individual, and not just that they "can afford it". This is the kind of thing that gives life insurance brokers a bad name.
You probably didn't mean to come across that way, but it just struck a nerve early on a Monday morning. My apologies if I misjudged your intent.
This post was edited on 5/20/13 at 11:46 am
Posted on 5/20/13 at 11:57 am to Bayou Tiger
Well, to be fair, a lot of it does involve whether or not you can afford it. Not that people who don't own it, can't afford it, but that in many cases, that is the reason. They need death benefit and will convert in the future.
I don't think he meant any insult by that. I have plenty of clients who could only spend $50/month when I first met them. Thy couldn afford permanet/I wouldn't recommend them doing it at that time.
I don't think he meant any insult by that. I have plenty of clients who could only spend $50/month when I first met them. Thy couldn afford permanet/I wouldn't recommend them doing it at that time.
Posted on 5/20/13 at 12:18 pm to Bayou Tiger
Bayou, No problem. No insult was intended. I think a client should first establish the need then choose what product best serves him. If you want term, buy term. They all serve a purpose. I still think a consumer should buy a product if he wants term that is convertible to permanent if he so desires. I would never suggest that life insurance be the only item in a person's investment portfolio. It is part and parcel of a good, well-rounded plan. Its primary purpose should always be to provide for the survivors in the event of untimely death.
Posted on 5/20/13 at 12:54 pm to thermal9221
I have an truckload of term life that will run out when my kids are finishing their college education.
I also have a whole life policy for 100,000. It is not much but it will get me buried and I'll have it no matter my medical condition going forward.
I also have a whole life policy for 100,000. It is not much but it will get me buried and I'll have it no matter my medical condition going forward.
Posted on 5/20/13 at 9:24 pm to nelatf
This question comes up fairly frequently on the board and should be answered like this each and every time.
Sit down with a planner/advisor who is reputable, educated and most importantly represents YOU not just 1 company. One company and one style does not fit every box. Develop a plan that suits the needs for you and your family, review that plan often with updated results. Develop a complete financial strategy using all the tools that are available to you and that you can realistically afford to save while still enjoying the rewards of your earnings.
The people on this board that are pro permanent insurance and those opposed will not be there when you need it the most, only you your family and the trusted advisor you choose will.
FTR- I am pro permanent but fully recognize the beliefs of those who aren't. I have clients in almost every profession and of all ages, income brackets and education levels. Hardly any two situations are alike so develop a good working relationship with someone you trust.
Sit down with a planner/advisor who is reputable, educated and most importantly represents YOU not just 1 company. One company and one style does not fit every box. Develop a plan that suits the needs for you and your family, review that plan often with updated results. Develop a complete financial strategy using all the tools that are available to you and that you can realistically afford to save while still enjoying the rewards of your earnings.
The people on this board that are pro permanent insurance and those opposed will not be there when you need it the most, only you your family and the trusted advisor you choose will.
FTR- I am pro permanent but fully recognize the beliefs of those who aren't. I have clients in almost every profession and of all ages, income brackets and education levels. Hardly any two situations are alike so develop a good working relationship with someone you trust.
This post was edited on 5/20/13 at 9:27 pm
Posted on 5/20/13 at 9:47 pm to toots-N-scoots
Posted on 5/20/13 at 9:57 pm to toots-N-scoots
DP
This post was edited on 5/20/13 at 9:58 pm
Posted on 5/21/13 at 10:04 am to TigerAlum1982
quote:
TigerAlum1982
quote:
Permanent Life Insurance
quote:
I have no idea if this was a good deal or not.
quote:
At age 25, I bought a whole life policy from Northwestern Mutual. It is called 65 Life.
Too late now, but this goes for anyone.
NEVER buy something that you don't completely understand.
Posted on 5/21/13 at 8:54 pm to thermal9221
Whole life is a good supplement to term. Rather than piss off a bunch of people, I'll tell you what I do personally.
Term is good for life insurance needs that have a definitive timeline. Kids costs until college....mortgage...etc. Keep in mind that when term expires it has to be repurchased at your new age and physical condition.
Whole life is good to purchase and lock down insurability while you're healthy for a dollar amount that you will need forever....I.e. end of life expenses and/or death taxes.
If you're a high earner then find somebody you trust to help with your planning. Also, just because somebody sells a product, it doesn't mean they're trying to screw you.
I have term to cover the immediate expenses with kids, mortgage and upkeep if something happened tomorrow. I supplement this with some whole life as a CYA for end of life, loss of insurability or to help out with estate taxes if I'm wildly successful with retirement.
Good luck!
Term is good for life insurance needs that have a definitive timeline. Kids costs until college....mortgage...etc. Keep in mind that when term expires it has to be repurchased at your new age and physical condition.
Whole life is good to purchase and lock down insurability while you're healthy for a dollar amount that you will need forever....I.e. end of life expenses and/or death taxes.
If you're a high earner then find somebody you trust to help with your planning. Also, just because somebody sells a product, it doesn't mean they're trying to screw you.
I have term to cover the immediate expenses with kids, mortgage and upkeep if something happened tomorrow. I supplement this with some whole life as a CYA for end of life, loss of insurability or to help out with estate taxes if I'm wildly successful with retirement.
Good luck!
Posted on 5/22/13 at 10:38 am to thermal9221
quote:
Looking to buy a house have kids and get married in the next 5 years.
Que? Lots of assumptions about life huh?
Posted on 5/22/13 at 10:55 am to SquatchDawg
quote:
If you're a high earner then find somebody you trust to help with your planning. Also, just because somebody sells a product, it doesn't mean they're trying to screw you.
Find a fee only financal advisor.
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