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Life insurance.

Old 06-03-2021, 04:59 AM
  #11  
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Term life is cheap. Just get at least a couple hundred thousand dollars' worth so your family is stabilized for at least a number of years.
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Old 07-17-2021, 05:54 PM
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Originally Posted by feltf4 View Post
Want to hear thoughts on life insurance.

Currently donít have any. Married. kid. Low 30ís. I know there are plenty of arguments for getting it vs not. Iím leaning toward NOT getting a policy. We currently have plenty of financial cushion. Live simply. If I take a long dirt nap, I believe my family be able to get on with out a $1-2 million policy.
Okay, then do you have $1-2 M in cash and equity in other interests? If not, then please consider a whole life policy, as you will build equity in it. Term life is like buying car insurance, or sending money through Western Union-once it's gone, it's gone!
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Old 07-17-2021, 05:56 PM
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Originally Posted by feltf4 View Post
Want to hear thoughts on life insurance.

Currently donít have any. Married. kid. Low 30ís. I know there are plenty of arguments for getting it vs not. Iím leaning toward NOT getting a policy. We currently have plenty of financial cushion. Live simply. If I take a long dirt nap, I believe my family be able to get on with out a $1-2 million policy.
Okay, then do you have $1-2 M in cash and equity in other interests? If not, then please consider a whole life policy, as you will build equity in it. Term life is like buying car insurance, or sending money through Western Union-once it's gone, it's gone!
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Old 06-17-2022, 05:11 AM
  #14  
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Originally Posted by silviastar View Post
Can you tell me why is it so expensive?
Well because death is a sure thing. Nobodyís gonna live forever. Term life is a bet that insurance companies make that you wonít die before the end of the policy. While life doesnít end unless you stop paying for it. So, no matter when you die youíre family will get paid. And unlike term life it also has a savings component that builds cash value in after tax dollars that grows tax free and can be borrowed from tax free. And you donít even have to pay the loans back if you donít want. The pan will just come off your death benefit. Pacific life even offers a whole life plan that after ten years of premiums you can just borrow against the death benefit to pay your premiums and build your cash value faster. It even as an option for market based plans with a risk index. Lots of people use whole/universal life policies vs. a Roth IRA because they have no income limits and if set up correctly no funding limits. Whole life is not quite the devil Dave Ramsey makes it out to be if itís set up correctly and you commit to it.
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Old 06-17-2022, 05:24 AM
  #15  
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Originally Posted by Myfingershurt View Post
Lots of people use whole/universal life policies vs. a Roth IRA because they have no income limits and if set up correctly no funding limits.
Yes, this is called "The Infinite Banking Concept" but in my mind at least the jury is still out on in the idea.
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Old 06-17-2022, 07:28 AM
  #16  
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Originally Posted by SonicFlyer View Post
Yes, this is called "The Infinite Banking Concept" but in my mind at least the jury is still out on in the idea.
Whole life is what my father had. He took out his first policy in 1947, that was three quarters of a century ago. There is plenty of data, pros and con, so it now should be your learning and making a decision. The jury is not still out. The data is there.
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Old 06-22-2022, 01:10 AM
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I don't have any insurance; I had term insurance until after I got divorced and my childrens' college expenses were covered. That is the best way to go as a saver like you and your wife.

Get a term policy. Whole life is much more expensive and life insurance is not needed once your kids graduate college because your family bills will be small. You and your wife are savers; the money you guys set aside will be more than enough to take care of her.
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Old 06-22-2022, 02:12 PM
  #18  
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Agree that term is best when you're young.

Whole life might have value for specific situations but you should have other retirement vehicles so why would the spouse even need it then? Even most pensions have a survivor option. IMO best to use pure investment vehicles for investment, not something which is also trying to be insurance.

One consideration for pilots... if your spouse passes away, in order to keep your job you're going to need to hire full-time live-in childcare for when you're on the road. Even for high-school kids with a driver's license, you really want an adult in the house. Unless you have really accommodating relatives living nearby. That's probably $75K/year, on top of any income lost from the spouse's job so you probably need a policy on the spouse, even if she doesn't work.
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Old 06-25-2022, 11:34 AM
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Get a term policy and when that expires and you don't, look into the hybrid life and long term care policies.
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