Originally Posted by
Sputnik
Mike,
FWIW, my father in law is a pretty successful financial manager, he laid out what it would cost for me to buy anything inflation adjusted that would provide the same payout. It was a lot more than SBP. And didn't take into account the pilot part of the puzzle. I told you I'm a pretty conservative guy financially, to me this was the conservative move. Doesn't mean it was smart, but it a piece of what lets me sleep at night.
For the guys with term, it's been a while since I've looked so I appreciate the tips. I need to set more up, currently all I have is through AAMAA. When I looked in the past, everything had declining payouts based on age. I.e. they might cover me till 70 at a constant monthly rate, but the payout wasn't very much. I think they starting dropping when I hit my 50s.
Gr8vu, are you saying if you kick at 75 it'll pay out full $800k?
E6--for the record, it's 55% of your 50, but I take your point.
I am a big AAFMA fan and used them for years. I exchanged my 800k term that begins decreasing at age 50 and went with their 30 year term that is good until 75 for me--warning age 45 is your last chance to do this since term policies don't usually go past that age.
My wife's family all live into their 80s and 90s and I watched her grandmother try and live on a railroad pension for over 50 years that was not adjusted for inflation. She spent the last several in a rest home and had to be declared insolvent by the family to get social security to cover it. I have 7 kids so I don't want my wife to have to worry about a thing.
Do the math on how fast your premiums are paid back if the wife just gets a few years of payout.
I have always bought term and invested the rest and plan to be self insured. I also got a bonus when I found out my new job provide 560K free. But for my situation I rest easier knowing I have plan a and plan b covered at affordable costs to take care of the wife and kids.
As stated everyone has different factors.