Life Insurance. Are You Covered?

[jonp]

My DIL just passed away and my Son In Law was counting on the life insurance policy to help pay medical expenses. Last year his company changed hands and he didn't pay attention. Turns out he did not fill out the proper paperwork to re-insure her under his policy so he is left without a wife and lots of medical bills.

How are you covered and have you checked it lately? Time tends to go by quickly and you don't want to find out the hard way that you missed something.

[BLTsandwedge]

Being a finance guy, this is a HUGE issue to me. Insurance is easy to ignore 'cause it isn't visible. Lack of it will bite your guts out. I've a brother who inherited my father's Civil War carbine collection (roughly $22K). He doesn't have the collection scheduled! I'd have kicked his head but he's not in very good health. Life insurance: an absolute must. Gun collection: absolute must. It ain't that expensive.

[dragon813gt]

I'm well covered so my wife and son won't have to worry about money if I should pass. I have a policy on the wife as well. Her's will pay off the house and provide a college education for my son if he so wishes. I'm the sole earner so having less coverage on her is fine.

What I do need to get in order is my wills. Both a living and normal one. Last thing I want is the state taking everything because this isn't in order.

[osteodoc08]

I'm well covered with 2 policies. One for my kids with my ex and one for my current wife and kids. Insurance is very improtant to me because if I were to die right now, I'd leave them with nothing but insurmountable debt, especially the student loans.

[BLTsandwedge]

I'm well covered so my wife and son won't have to worry about money if I should pass. I have a policy on the wife as well. Her's will pay off the house and provide a college education for my son if he so wishes. I'm the sole earner so having less coverage on her is fine.

What I do need to get in order is my wills. Both a living and normal one. Last thing I want is the state taking everything because this isn't in order.

Good stuff! Rock on...........

[BLTsandwedge]

I'm well covered with 2 policies. One for my kids with my ex and one for my current wife and kids. Insurance is very improtant to me because if I were to die right now, I'd leave them with nothing but insurmountable debt, especially the student loans.

.....as is this.......

[JonB_in_Glencoe]

I guess I am in the Minority here. I tend to see Life Insurance as a scam...and why don't they call it what it really is, Death Insurance.

[sparky45]

OK; let's call it Death Insurance, now what?

[SciFiJim]

I guess I am in the Minority here. I tend to see Life Insurance as a scam...and why don't they call it what it really is, Death Insurance.

Life insurance isn't for you, it for for those in your life that you wish to continue to protect and provide for after your death.

I am well covered so that my wife won't have any financial worries if something were to happen to me.

[Sweetpea]

I try to make sure that I am worth slightly less dead, than alive.

Just in case SWMBO gets any ideas...:guntootsmiley:

[dragon813gt]

Life insurance isn't for you, it for for those in your life that you wish to continue to protect and provide for after your death.

It is for you as well. Assuming you have the coverage. If I'm diagnosed w/ a terminal illness I can cash out half of my policy to live the last of my days in comfort. This allows you to pay off any remaining debts and get all the financials in order so your significant other doesn't have to worry about it. Gives you money for medical coverage as well. I hope to never use this coverage but it's comforting to know that it's there.

[dtknowles]

Life insurance is not needed by everyone nor is long term care insurance. Young families need life insurance, retired couples not so much. My soon to be spouse will get survivor rights to my pension and SS along with inheriting my considerable wealth including the paid off house we live in. Why would she need life insurance on me.

Tim

[osteodoc08]

If I was debt free and had a large amount of wealth, I could consider whole life insurance vs none at all.

[kfarm]

Cashed all mine in, a couple years ago. Bought a nice new Kubota 70 HP to garden with. Let the old woman worry about he own money. But really with every thing paid for evev our funerals and with savings and cash in the bank I'm OK.

[Handloader109]

If you have kids and or a wife that depends on your income and you don't have insurance enough to replace your income, you are not taking care of them properly. Term insurance is cheap. Don't go with whole or universal, insurance is not a savings account you will be wasting your money there. But get covered. And if your spouse has large portion of your total income, she should be covered too. Mine isn't and health now prevents her from adding.

[waksupi]

I don't have it, I have no one for a beneficiary. Most of my estate will go to the Shriner's Hospitals.
My mom has life insurance, and is 89 next month. We kids are the recipients. It has been paid in full for many years, and she is a major stock holder in the company, but I have no idea of it's value.

[jonp]

It is also to help pay your expenses and bills racked up during extended time off taken to care for someone with an incurable disease.

I have no children so dont need a great deal. My sweetie and i have health insurance that covers bad stuff and wevare responsible enough to have put enough money aside in case one of us has to take care of the other for some time.

All situations are different. The point is to not think you are covered and on the right track, know you are covered and on the right track

[Goatwhiskers]

Life insurance: the company is betting that you're not gonna die, you're betting that you will. Either way, you lose. GW

[GabbyM]

I've had some experience with other peoples pre paid funerals. They went very smooth. For sure would be a little creepy picking out your own casket. But it relieves your children from the time and grief. Plus making decisions among several siblings.

I don’t think creditors can take away your pre paid funeral or burial plot when coming after medical bills either. But then I’m no lawyer. My mother in law had been in a nursing home and after a year was a ward of the state. Business and home were liquidated. Her funeral was all paid for waiting down at the funeral home. She had purchased some sort of annuity for about $2,500 about twelve years earlier. Then died in her mid sixties. $11,500 was fully funded and covered by this product. This was about 27 years ago. Her four daughters made one meeting with director that only took around half hour. Very smooth and professional. I turn sixty this summer. Probably should set one up for myself. My daughters live 1,600 miles away.

[MrWolf]

I picked up 20 yr term policies on both of us so if one died the other would be able to not work and stay with kids. Only about six or so years left on it. Term is the only insurance I would purchase as whole life, etc. you are paying someone else to invest your money.

[Love Life]

I'm heavily insured. If I kick the bucket, I don't want my wife or children to have want for anything and be put out due to finances or something.

I also have insurance on my wife and children. I have house insurance, valuable goods policy, and vehicle insurance as well.

It all only runs me $135.00 a month so it's not that big of a deal to be well covered for many contingencies.

[Love Life]

I don't have it, I have no one for a beneficiary. Most of my estate will go to the Shriner's Hospitals.


I volunteer as your beneficiary. Anything left to me after the Shriners are taken care of will be used for firearms and good times.

P.S. The Shriners are awesome. Truly great stuff.

[MT Gianni]

Being a finance guy, this is a HUGE issue to me. Insurance is easy to ignore 'cause it isn't visible. Lack of it will bite your guts out. I've a brother who inherited my father's Civil War carbine collection (roughly $22K). He doesn't have the collection scheduled! I'd have kicked his head but he's not in very good health. Life insurance: an absolute must. Gun collection: absolute must. It ain't that expensive.
My last two insurance companies would only let me purchase a rider on guns up to $10K, I am on my own above that. There is a personal property that kicks in for some of the guns before it hits the rider.
With all personal benefits you cannot trust that all will be well, you have to dot the i's and cross t's.

[BLTsandwedge]

It is also to help pay your expenses and bills racked up during extended time off taken to care for someone with an incurable disease.

I have no children so dont need a great deal. My sweetie and i have health insurance that covers bad stuff and wevare responsible enough to have put enough money aside in case one of us has to take care of the other for some time.

All situations are different. The point is to not think you are covered and on the right track, know you are covered and on the right track

This.

[Charley]

Wife spent 40 years in the insurance industry. There are advantages and disadvantages to everything, and everybody's situation and conditions are different. It's called analyzing and planning...

[MBTcustom]

Whole life is a scam. Term life is a great way to protect your loved ones. The older you get, and the more things you get paid off, and the more money you have set back, the less you need it.
Me? I bought a thick term life insurance policy when I was 24 years old. I also invested everything I could in mutual funds and I had a very savvy financial adviser who made my money work for me.
Since I got the LI policy locked in when I was young an healthy, my premiums are very low. Since I invested wisely, I was able to start my gunsmithing business (we'll see if that was a wise investment or not).
Anyway, the point is, once everything is paid off and you have a thick retirement fund, the need for life insurance drops to a mere $10,000 to get you set up to fertilize Bermuda (and I told Angie to ditch my lousy carcass the cheapest way she can and keep the difference).
That's another thing that's a really good idea that I have not done yet, that I really should: I living will. I've got Angie listed as the beneficiary to all my financial affairs, her name is on every title, including the business, but if I bite the big burrito and she's not listed specifically in a living will, I understand she could lose some of my assets to the state. Hmmmmm, I really need to look into that.
Point being, there are several key things you can do to insure your affairs are dealt with properly. One thing is for sure: When you kick the rusty bucket and croak off, if you have not made arrangements ahead of time for your assets and liabilities, the people you love the most will be stuck with the liabilities and the people you find the most disgusting and vile will find a way to legally rob you of your assets (that's family members of ill repute, and the government). Fact of life. Just bite the bullet and get things set in place. I promise you will not jinx yourself. In fact, fortune favors the well prepared, and by doing this, you're probably guaranteeing you'll never need it.

[Mtnfolk75]

We did some checking recently & found between my pension & Social Security, SWMBO will only lose $35.00 a month when I croak ...... :shock:

I have been sleeping with 1 eye open ...... :bigsmyl2:

Edit to add: I also still have a $50k Death Benefit from the county, SWMBO also has a $40k one.

[popper]

Agree with Goodsteel. Costs & probate stuff varies with states. I had whole life for a while when the kids were little, then changed to term - at the advice of the sales man. Dropped that when the kids got on their own. Also double indemnity is a joke (like funeral, cancer, etc policies) - don't pay for it. Us older folks have been able to collect for a while, you younger may not have the opportunity - good luck. Worst situation is when you and beneficiary pass at the same time. Then the (trustable) godparents and a trust will kick in and save them. A GOOD lawyer is cheap in the end. Keep you will up to date.
All investment is letting someone else play with your money...

[Charley]

Agree with the Whole Life issue, it generally is NOT a good (or even fair) investment, despite what someone in sales tries to tell you.

[fatnhappy]

I guarantee you will cash in the policy at some point. It's like a lottery and you have the winning numbers.

[alamogunr]

Dropped life insurance when sons graduated(w/doctorates) leaving only company provided life insurance. Did not replace that when I retired. When making choices on pension, which only she had, we chose the option that did not provide any benefit for survivor. If I die first, she can convert to my SS and end up with more than enough to support her. Our IRA accounts have prospered over the nearly 10 yrs we have been retired. Those accounts are professionally managed. I know! Few will think that is a good idea. I do. It gives me peace of mind that my passing will not leave her with decisions to make that she is not equipped for. Plus, although I thought that I would enjoy managing our investments, I find that I enjoy other things(casting, reloading, shooting) much more.

One thing I need and intend to address very soon is what is commonly referred to as a "living will". In TN it is called an "advance directive". That will take a lot of emotional pain out of my death. Also, I intend to leave directions for my funeral. Our sons will be aware of my preferences concerning final arrangements. I don't believe in expensive caskets. We already have burial plots purchased in the cemetary of a small country church nearby

[blackthorn]

I have had a very varied work life. The work I had in the wood industry provided for a pension plan (negotiated by my Union) that was/is fully funded by the Employer's "Council of Forrest Industry". When the plywood plant I was working in closed, I had the option of taking early pension (at 57) reduced by about 10%. I sat down and did the math with respect to how much I would get and what my options were. There were several, straight life, full survivor being the 2 choices in the end. Full survivor comes at a cost, of course, and it had several drawbacks the worst of which was that if Gale predeceased me (or we split up) there was no way to name another beneficiary. The cost in pension reduction was close to $200 per month. For $40 less per month I was able to buy term life policy that will pay Gale $100,000 on my passing, and if she dies before I do, I can transfer the benefit to the kids. The policy also accumulates dividends that could be drawn out without affecting the basic policy. From age 57 to age 65 I drew (and socked away a nice bit)! After the plant shut down I got a really good job that wound up giving me a good pension as well. When I retired in 2004, we were able to move here debt free, and some contract work for 2 years built my shop and paid for some other upgrades. Finally, we joined a memorial society and then set up our funeral arrangements. All is paid for so when the time comes, whoever is left just has to "call the guy" to take the remains to the furnace and done! Because we are a blended family, we got a good lawyer to draw up our will's and we will use the assistance of a CPA as executer so there will be little or no infighting!

[doc1876]

My ex is worth 75k to me. Only the good die young, so I got a feeling I won't collect.

[opos]

Met life and AARP both offer "death benefit" insurance...neither will take me as I'm too old....hooray, no more ads from AARP (been getting them since I was 50)...We have prepaid cremation service plans....no "services"...scatter the ashes at home when it's convenient. Kids are grown and worth more than we are..Grandkids can wait for their folks to die...we have property that is paid off so either of us that survives the other can get along...Have always thought life insurance was like going to Vegas...they hold all the chips...Everyone to their own ways...we have our own thoughts about "long term health care"...don't much plan on a nursing home stay but that's my plan and the gubberment can't have any say..hooray!

[Dhammer]

My advice if you can afford it, do it while your healthy. I let my policy from military expire. City I worked for carried $50,000.00 so figured that would more then cover it. Short version is I got injured on duty. I have two young kids and wife wanted to make sure , the kids would be taken care of if either one of us got hurt. I fall into the high risk bracket now, because I have to take pain meds. Several companies turned me down. Literally healthy other then chronic pain. Best we could do was $200,000 at a lot more then I would like to pay. Kicker is I had that from Uncle Sam at a third the price. She would have us set for life for less too theb what my policy costs with her policy. Just food for thought.

[TXGunNut]

I'm 55, single with no known offspring and assets grossly outweigh my liabilities so I have no need for life insurance. I do need to get a will drawn up, a few of my rifles will be donated to museums when I'm done shooting them.

[BLTsandwedge]

My last two insurance companies would only let me purchase a rider on guns up to $10K, I am on my own above that. There is a personal property that kicks in for some of the guns before it hits the rider.
With all personal benefits you cannot trust that all will be well, you have to dot the i's and cross t's.

Sorry for the delay in writing- I just had a major breakthrough in my 6 month-old business....can you imagine making decent money with just your own gray matter and a computer? Wow.

Anyway....insurance for guns. The NRA has heavily advertised on this subject. But I'm surprised that you can't buy more coverage...for any money? I'm fortunate- I've got USAA, the private sector folks that insure prior and current military members. They'll cover us for appraised value of our collection. And they're cheap. As possessions go, guns are cheap. We're not talking about a $150K collection of art, antiques or jewelry- guns normally just aren't in the same value category. I'd recommend shopping a bit- because if your current carrier tells you that you only have so much coverage and they won't do more, they're not willing to work with you and that's bad. It smacks of a company that is decidedly anti-gun....at least that's how I read it. Would they deny you a rider for $50K if your valuables were jewelry? I can't recommend any other carriers as I don't know- my wife writes large P&C for Nationwide and she doesn't know- doesn't write personal lines. Best advice is to shop until you find what you want, but really- no one can afford to be on your own above policy limits.

[BLTsandwedge]

my ex is worth 75k to me. Only the good die young, so i got a feeling i won't collect.

lol!!!!!

[BLTsandwedge]

I agree completely with the folks coming up against whole life.....except in circumstances where it may benefit the right individual. Really folks, there's no one finance person that is good with everything- just like doctors. Each of us has a very unique situation regarding money- there are many here who don't need much insurance. Some of us may be wealthy enough to self-insure for even health insurance. That's great. For the rest of us, the answer is to shop- just like you'd shop for a physician. We start with a general practitioner- the person who will give you a general outline as to what your financial needs are. Then, you can determine your financial requirements (to include insurance) based on your own history and based on your projected needs. The plan will fall in place based on all your requirements. Do you spend a few bucks? Yep. Does it get done right? Probably so.

Best regards.....