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Started By
Message
re: Term Life insurance expires in 5 years for myself and my spouse
Posted on 12/22/18 at 9:35 am to buckeye_vol
Posted on 12/22/18 at 9:35 am to buckeye_vol
It's not exploitative and your corporate math is not only wrong, its irresponsible. It's impossible to remove emotion from humans planning their money. Just because you does nit mean everyone can.
Why does the 44 year old couple only invest in CDs and fixed annuities when history shows they're better off in the market? Why does the 68 year old widow leave my office and liquidate her husband's company stock to pay off a 0% car loan instead of using the dividends I just redirected into her checking account to pay the note as we agreed?
When a business owner or financial decision maker spouse dies, its never just about the best possible math. A good advisor will understand the client's needs and values, not just the most cost effective way to do something.
Is it wrong of me to add in layers of liquidity, ltc coverage, future income, tax planning for RMDs and such at little to no cost just because the client isn't currently in need of it? People really appreciate a contingency plan thought up years prior.
And how much more do you think an advisor makes on a cheap 10 year term policy? Most of the time, the math of my business operation would show I lose money writing a term policy. So should I not do it because Apple shareholders might not earn as much if Apple adopting the same practice?
Why does the 44 year old couple only invest in CDs and fixed annuities when history shows they're better off in the market? Why does the 68 year old widow leave my office and liquidate her husband's company stock to pay off a 0% car loan instead of using the dividends I just redirected into her checking account to pay the note as we agreed?
When a business owner or financial decision maker spouse dies, its never just about the best possible math. A good advisor will understand the client's needs and values, not just the most cost effective way to do something.
Is it wrong of me to add in layers of liquidity, ltc coverage, future income, tax planning for RMDs and such at little to no cost just because the client isn't currently in need of it? People really appreciate a contingency plan thought up years prior.
And how much more do you think an advisor makes on a cheap 10 year term policy? Most of the time, the math of my business operation would show I lose money writing a term policy. So should I not do it because Apple shareholders might not earn as much if Apple adopting the same practice?
2
Posted on 12/23/18 at 9:57 am to wasteland
quote:
Most of the time, the math of my business operation would show I lose money writing a term policy
Lol... So insurance companies sell term life insurance at a loss to get their customers into other products.
Not buying that.
Posted on 12/23/18 at 10:05 am to UltimaParadox
I'm not an insurance company. I'm referring to the time and resources myself and staff put into compared to the revenue the term policy produces.
Insurance companies love selling term. Less than 2% of term policies pay a death claim.
Insurance companies love selling term. Less than 2% of term policies pay a death claim.
Posted on 12/23/18 at 10:10 am to wasteland
Then why even bother writing term policies?
The insurance company that you sell requires it?
The insurance company that you sell requires it?
Posted on 12/23/18 at 4:37 pm to tiger91
I took out a 20 yr policy 7 years ago and just got a new one to replace it for only a few $ more, and let the initial one cancel. We decided to have a third child and wanted the policy to at least be in place around to see him through college. Not sure if that helps but it’s the logic we used.
This post was edited on 12/23/18 at 4:38 pm
Posted on 12/23/18 at 4:50 pm to wasteland
This thread has got to be so confusing for the OP. Back and forth, all over the place.
This post was edited on 12/23/18 at 4:52 pm
Posted on 12/23/18 at 6:30 pm to wasteland
quote:
Insurance companies love selling term. Less than 2% of term policies pay a death claim.
Maybe the other 98% outlived their need for insurance, what about the high percentage of holders of permanent insurance that let their policies lapse early in the life of the policy?
"For those with permanent policies, which may have a cash value long before the death of the insured, some 25% of policyholders stop making premium payments within the first three years of owning the policies; within 10 years, 40% have let the policies lapse."
This post was edited on 12/23/18 at 6:43 pm
Posted on 12/23/18 at 10:14 pm to meeple
After we had child number three is when we redid our policies the first time. Thought get them through high school. Now our focus is changing.
Just thinking we’ll redo for another 20 which gets us to 69. But we’ll keep checking on rewriting vs cost.
Just thinking we’ll redo for another 20 which gets us to 69. But we’ll keep checking on rewriting vs cost.
Posted on 12/23/18 at 10:17 pm to lynxcat
Lynx yes but I knew I should likely rewrite our policy for another twenty — or rather a new policy. And I’ve never worried about the farm as with three kids, home and a job well I left it to him and it’s a weird business to understand anyway.
But I know (and have known) I need to have more of a clue than I do — I have a small clue but need more. I do know where everything is loan/money wise and I do know who to call if I ever had to handle it and needed help.
Now, if I should die he’s screwed house finances wise. Lol. Need to fix that as well.
But I know (and have known) I need to have more of a clue than I do — I have a small clue but need more. I do know where everything is loan/money wise and I do know who to call if I ever had to handle it and needed help.
Now, if I should die he’s screwed house finances wise. Lol. Need to fix that as well.
Posted on 12/24/18 at 6:56 am to tiger91
quote:
Just thinking we’ll redo for another 20 which gets us to 69. But we’ll keep checking on rewriting vs cost.
But why? Rewriting instead of getting a longer term policy now is more expensive.
Again, get a term policy and set the expiration as to the time you no longer need it. Plan properly on no longer needing it, as in pay off your debt, learn each other’s side of the finances, etc. Then when the term policy s expired you are ready.
Life insurance is not a perfect parachute. A death is still going to be a life changing event. What pisses me off is these insurance salesman that use scare tactics and treat their product as life saving. It’s not, it’s still going to be likely harder without the husband than with. Well unless you get a $10 mil term I guess. But just be reasonable and plan.
Posted on 12/24/18 at 7:14 am to tiger91
quote:
Just thinking we’ll redo for another 20 which gets us to 69. But we’ll keep checking on rewriting vs cost.
I also think you can usually cancel your term policy without penalty at any time, so if your circumstances change or you want out, you should be able to do so.
Posted on 12/24/18 at 10:14 am to baldona
I think I understood ours can’t be extended as that option was gone years ago. To get a new policy is $650 or so pet year —- we lay $365 now on a policy written 15 years ago. I didn’t think it was that bad considering we’re 15 years older.
I guess I’m just using incorrect terms to explain.
I guess I’m just using incorrect terms to explain.
Posted on 12/26/18 at 6:49 am to tiger91
quote:
I think I understood ours can’t be extended as that option was gone years ago. To get a new policy is $650 or so pet year —- we lay $365 now on a policy written 15 years ago. I didn’t think it was that bad considering we’re 15 years older.
First off I think it’s great you are being responsible and covering yourself with term insurance. But what I was trying to explain is that if you have to get a new term policy you aren’t doing a good enough job with the rest of your finances. Certainly things change but give yourself a little wiggle room, it sounds like things are mostly the same for you.
What you need to do is analyze your finances, your goal is to not NEED life insurance because you are financially independent. Figure out how many more years you need term insurance now, get a plan in place to become financially independent and out of debt, and then lock in the term policy to have that accomplished sooner than later.
It sounds too much like you are spinning your wheels financially and kicking the bucket in the big picture to me.
Posted on 12/27/18 at 8:48 am to buckeye_vol
quote:
This just seems like a bunch of nonsense from a financial perspective and relies on an exploitation of the emotional impact of the death.
For 1 I'm not an insurance salesman.
For 2 the $1M I used was short term operating debt due in full within a couple months from crop sales of a crop still in the field, not long term debt. So no I didn't use long term debt to be scary and exploitative.
3 that is quite a stretch to compare a small farm business to the 10 biggest stocks in the Dow.
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