Life Insurance?

VaSteve · 12-31-2005, 10:54 AM

Anyone here have life insurance beyond what the company gives you ( salary x ##)?

Term, whole life, etc. What do you have?

Regarding term... there are policies that fix your payment for life, never to be raised. Worth it?

gassy · 12-31-2005, 11:09 AM

I have two term policies--one for my 2 kids that I have from an ex, and another for my current wife and child. The latter is enough to pay off the house and a bit more.

Dantilla · 12-31-2005, 04:32 PM

I'm self-employed and have term life insurance. Only way to go.

nostatic · nostatic's Garage

I have 3 term policies that together add up to what is owed on the house (hmm, have to refigure that with the divorce). The idea was that if I died, my family would be in good shape. I got it early enough with TIAA/CREF that premiums are pretty cheap.

pwd72s · 12-31-2005, 06:06 PM

"whole life" is a sucker's game...

HardDrive · 12-31-2005, 07:57 PM

Wife and I have $1 million each in term. We want to cover the house and incidentals if something happens (IE...one of use gets killed.)

New York Life.

Whole Life is for suckers.

Vipergrün · 12-31-2005, 08:37 PM

Yep, I have term life in addition to the 6X salary my employer provides. Who ever knows how long employment will last these days.

campbellcj · 12-31-2005, 09:32 PM

Employers still provide life insurance? (We don't, and last time we did it was a pathetic amount that just might cover a wood box and a long term parking spot). We took care of this earlier this year and are 'adequately' covered w/ high quality term policies.

I have not dealt with disability coverage yet, though. What do you guys think about that issue? The insurance peddlers push it hard, of course, but what is the real story? Frankly we are in a position where if either of us were disabled and unable to work for a long period, we'd be pretty effin' hosed...

VaSteve · 01-01-2006, 02:57 PM

Quote:

Originally posted by pwd72s
"whole life" is a sucker's game...

Paul, please tell me more.... I don't think googling this combination of words will get me much from the Insurance Companies.

A financial advisor mentioned it and it seems like a lazy way out for them, plus a nice kick back from the Ins Co.

Flatbutt1 · 01-01-2006, 03:25 PM

my understanding that dollar for dollar, term works out cheaper for the same amount of coverage. But I bought whole life policies for each of my kids at birth. They cost next to nothing and were paid in full quickly. Now they're just sitting there gaining a little in value each year. To do again I'd prolly go Term.

jorian · 04:44 PM

I used to peddle the stuff in another life. Get a quote for whole life then buy term and invest the difference. Term for those under 50 is very cheap.

Disability insurance is arguably more important than life insurance. If you are totally disabled - ie: you can't do the substantial duties of your job - and you don't have coverage your family is worse off than if you had died. The state and your employer will not adequately cover you.

When you buy a policy choose the longest waiting period you think you can afford. This is the time gap that between when you become disabled and your insurer makes its' first payment to you. The longer this waiting period is the cheaper your monthly prmiums are. During this waiting period you are in essence "self-insured" or living off your savings. Also make sure your policy covers you for YOUR OWN OCCUPATION. If you are unable to do the job you are trained for but are able to flip burgers some policies will insist you do so. Ask someone you trust who they used and buy from them. Most people don't realize it, but their biggest asset is their ability to earn a living. Every one on this board won't think twice about insuring their P-car but I'll bet most are under-insured when it comes to disability insurance.

Dixie · Dixie's Garage

Buy term. And as stated, Disability is more important than life. If you're dead, you stop having expenses. If you're disabled, your expenses have just started...