Life insurance yes/no?

[scottmandue]

Before I got married I was a free spirit, my only dependents were my cats so I never thought about life insurance.

My only real big investment is in my house, my only close living relative is my brother and he is relatively well off so I thought I should do up a will leaving my house to my best friend.

Then I got married...

My wife has a daughter in college and has carried a life insurance policy $30 a month for a $250K payout (that comes to an end in (2025).

If anything happens to me my wife inherits the house and my pension.

I still don't see the need for life insurance... especially now that we are both over 50 so the quotes we are getting have rather high monthly payments.

What does the PPOT group think of life insurance fro middle agers?

[vash]

i'm no expert.

but i would if i had kids/wife..i think i would get enough to pay off the house and burn me. plus leave some travel money so my family can sprinkle my ashes in Thailand..on the beach.

other than that. no thanks.

[Vipergrün]

I started a thread on a very similar topic a couple of weeks ago. The general consensus was "no", put the $$ somewhere else. I already have a policy, which like yours, will expire in 10-12 years. At that time I'll own my house, no dependent (I hope) children, spouse works and has a pension.

[Chocaholic]

If kids are college age and you have savings/pension, etc., no need (my opinion). As long as means exist for those you support to maintain themselves, spend your money elsewhere. The insurance companies are like Vegas. They don't lose. Eff 'em!

[Oh Haha]

My wife and I both have policies which will be enough to pay off the house plus some should one of us go. I've had family members die without it and paying for even the funeral becomes a burden on the living.

Our kids are still young so our situation is different than others here. Our thinking may change once they get out on their own.

Even during the hard times we kept the payments current.

[pwd72s]

Term insurance if you have an income to protect...never buy "whole life" insurance.

[dan88911]

Like you my wife gets my pension and the assets. Dropped the the term life once I realized she will be fine without it. Plus I don't like insurance companies I think they are crooks.
They say life insurance is to take care of those (wife, children etc.) dependent on your income should you die unexpectedly.
Depending on some other estate planning issues. If you a large estate I have heard it be can use address tax issues.
You may want to talk with a financial planner or do a little research.

[fintstone]

No reason to be worth more to my wife or kids dead than if alive. It is wise to keep just enough insurance or assets that they can maintain their current lifestyle...but prefer you alive.

[MBAtarga]

So long as your spouse will have enough funds to continue mortgage and other living expenses I see no need for much insurance.

[aigel]

I posted in Brad's thread. Not necessary unless your demise will create financial hardship for your heirs. I am sure you will be missed, but doesn't sound like anyone will lose their roof over their head or go hungry! I'd skip.

Mine runs out and I will not renew. Even wondering if it is worth continuing to pay in a few years. I could have a good time with the annual premium!

G

[masraum]

I have some through work which is quite cheap.

[fintstone]

With the longer life spans and medical advances, I am wondering if investing in a long-term care plan might be more appropriate to prevent bankrupting one's family or growing old in a poor situation.

[aigel]

Long term care? Cal .357!

J/K - I am interested in hearing how the long term care plans work. Maybe that's another thread. Do they have some insurance type structure? How does that make sense over self financing it with your assets?

G

[72doug2,2S]

You need more when you're young and have little ones, you need less as you get older.

The only consideration is would your death be a burden to your family and is that how you want to be remembered?

[GWN7]

Term life only. Thru my group life policy from work I think it costs me $2.45 a month for $250,000. That's enough money to cremate me and buy my heirs a couple new vehicles. Any more I'd be worried about suddenly falling down some stairs. Why work hard to make someone else rich? Let them earn their own.

[1990C4S]

Originally Posted by pwd72s

Term insurance if you have an income to protect...never buy "whole life" insurance.

There are lots of instances where whole life is a good deal, pay the premiums from a holding company and the payout is tax free, depends on your tax code.

[VincentVega]

Check around on pricing, health, age, zip code.. all factor in. I like the idea of leaving her with enough so $$ isnt a concern. YMMV.

[David]

I had a term policy separate from my work life insurance when I was young with a young child. Once my son was nearing 18, I was reaching the age of getting a big rate increase, and my savings was more substantial, I dropped the separate policy.

The policy at work is so cheap, I'd be stupid not to have it.

[MBAtarga]

We've got 2 immediate family members that will likely require long term care (one elderly, the other fully disabled.) The wife and I are the "designated" responsible parties, so we've got enough insurance on each other to cover those expected costs in case either/both of us aren't around.

[ckelly78z]

You need enough life insurance to pay off the house, and any other bills that are outstanding to make sure your wife will be able to keep everything. It also needs to pay for your funeral/creamation/services, so there is no incurred expense that the famioly is then trying to figure out how to pay for.

You better make sure that your pension will extend to her upon your death, it's likely you can elect for a full survivorship (she would get the full amount of your pension even after your death), but at a reduced rate compared to just you collecting for your lifespan.

I would hate the thought of my wife having to live frugily because of my assumptions.