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Life insurance.

Old 05-08-2021, 04:31 AM
  #1  
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Default Life insurance.

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.
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Old 05-08-2021, 05:01 AM
  #2  
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I would suggest you do get a Term Life policy.
15 or 20 year will put you at your destination Airline if not already there and capable to self fund any issues.
My wife can pay off the house and retire if she so chooses.
If I expire after the house is paid offÖwell she can still retire.
Itís called financial peace and its hard to put a number on that.
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Old 05-08-2021, 05:33 AM
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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.
You and your wife need to sit down and talk about what your life should look like with both of you alive versus one of you dead. How would one of you passing affect where you would live, your childís educational options, and a host of other things? Than figure out how much help each of you would require if you were suddenly a single parent to fulfill your parental responsibilities. You will find that you will need term life insurance policies on each of you. As a pilot, your best option may be through your company/union. Your spouseís options may vary. Finally, look at who would inherit responsibility for raising your child if both of you pass and how much financial help they might need. Itís a wickedly complex and emotional problem to solve. Unless you are truly financially well off, it is unlikely you already have those resources sitting in an account. Talk to a financial planner who doesnít sell products for a good plan of action and then shop around for the best products.
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Old 05-08-2021, 06:55 AM
  #4  
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Originally Posted by TiredSoul View Post
I would suggest you do get a Term Life policy.
15 or 20 year will put you at your destination Airline if not already there and capable to self fund any issues.
My wife can pay off the house and retire if she so chooses.
If I expire after the house is paid offÖwell she can still retire.
Itís called financial peace and its hard to put a number on that.
Understand that. I am at my final destination career stop if the turn around from covid stays going in the right direction.

our investments both retirement and brokerage are doing their thing, we contribute a healthy portion every month to our brokerage account (hopefully achieving a little more financial freedom before the next down turn). Part of me believes that continuing to hit those investments will be able to set up my wife and kid for a bright future (unless I take a nap today). Just my thoughts. I know life insurance is pretty cheap and can offer plenty of benefits and peace of mind. Thank you for your advice.
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Old 05-08-2021, 08:47 AM
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Sometimes life is simple
You either come back from your next trip or you donít.
You wife may be pregnant with twins and hasnít told you yet when you expire.
You may face a nasty divorce that erases your financial buffers.
Your neighbor might sue you for their kid getting hurt on your trampoline.
Its just crazy examples I know that.
The beauty of a Term Life Insurance is that nobody can touch it.
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Old 05-08-2021, 09:25 AM
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Term life premiums are cheap when you are young. They are for hedging bets. You are betting that you are going to die young and your spouse and kids are going to need it to continue their current lifestyle.

If you are fortunate you lose that bet.
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Old 05-08-2021, 10:39 AM
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Originally Posted by Excargodog View Post
Term life premiums are cheap when you are young. They are for hedging bets. You are betting that you are going to die young and your spouse and kids are going to need it to continue their current lifestyle.

If you are fortunate you lose that bet.
Term is to provide for younger kids. Once you grow older, if your spouse needs it (pay off the house, etc), it may be better to get a whole life policy.

Once you have enough (10 to 15 times your annual income needed for your family to be sustained), you probably do not need whole life.

As a professor of mine said, ďLife Insurance is Poor People Pooling their Poverty.Ē I was poor once, the first couple of decades out of college. Not anymore.
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Old 05-08-2021, 11:46 AM
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Originally Posted by TiredSoul View Post
Sometimes life is simple
You either come back from your next trip or you donít.
You wife may be pregnant with twins and hasnít told you yet when you expire.
You may face a nasty divorce that erases your financial buffers.
Your neighbor might sue you for their kid getting hurt on your trampoline.
Its just crazy examples I know that.
The beauty of a Term Life Insurance is that nobody can touch it.
these are all great things that I hadnít thought of before.
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Old 05-15-2021, 06:22 PM
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Default Life Insurance benefits before you die.

Some life insurance companies have now a product that you can protect yourself and your family without you actually having to die to get. It's associate with medical condition and accidents. Yes, you can collect without kicking the bucket.
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Old 05-17-2021, 07:36 PM
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frankly if you are in your 30's and a pilot (which means you can pass an FAA medical) then you should absolutely have a 20 year term policy since you are married and a parent.

Do you want your dependents to not have to worry about their financial future, or just "get by"?

Don't be a cheapskate.
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