No, she's 8 lol.
School me on life insurance..
- Thread starter jmsa540
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No, she's 8 lol.
And if you pass now?
You need life insurance.
But it’s cheap, about $30 a month for $500k. As you saw $57 a month for $1,000,000.
AAA Life; wife and I covered for $1m a piece. Less than $110 / month combined for both of us.
Well, if I pass now, her Mom, my ex, would take care of her, and she works, too.
EDIT: I suppose the next question will be what if she passes. I'm quite certain my ex is too dumb, and cheap to have taken out life insurance. So yeah, I suppose I do need it.
This is what i want..i want to get it on myself and my inmediate members of my family. I want each policy to last for the rest of their lives. I dont want anything that expires in 10 or 20 years. Id like it to build cash value.
What are my options?
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What are my options?
Sent from my SM-G892A using the svtperformance.com mobile app
Whole life or cash value is awful.
You make 3-4% on your money.
It cost way more because both the insurance and broker will make more money.
When you die the cash value you built up does not go to your beneficiaries. They will only get the policy payout.
Instead:
Invest the money you save from buying term.
Earn 10-12% return.
By the time 20-30 years is up you’ll have $500k, that you can use however you like, or more based on compounded interest investment at 10-12%.
See...i have no idea what im talking about...what does usaa have??
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OP this is the equivelent of asking svtp how much they can bench press. Youre not going to get a lot of real accurate honest answers.
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Lemme share something that may help you. Don't just plan this first term life policy. Plan your next one too. Let me give you an example.
A) Let's say you're 35 and you are shopping term policies. You buy a 20 year term. Well you are going to be 55 when it expires. You will probably want another term policy at the point. Well at 55 the rates are higher. 55 + 20 more years gets you to 75. It's not uncommon to die before 75 hence the increased rate.
B) So at 35 let's buy a 10 year term instead. That will get you to 45 years old. At that point you buy a 20 year term policy and it will get you to 65. Most people live to at least 65 and the rates are much less than the scenario above.
In A above, even if you did a 20 year and then a 10 year to get you to 65 its going to cost more than example B.
There are many ways to do this and there is not one catch all answer. You have to factor in your home equity now vs later, other assets and etc, who are you're trying to protect if you die and how much money they will need. I'm just trying to get you to plan more than one step. It's all a game of what ifs and the insurance companies are just playing it by the statistics.
I have a Farmers policy. I found it interesting that suicide is not covered for the first 2 years. However after that it is 100% covered without question.
A) Let's say you're 35 and you are shopping term policies. You buy a 20 year term. Well you are going to be 55 when it expires. You will probably want another term policy at the point. Well at 55 the rates are higher. 55 + 20 more years gets you to 75. It's not uncommon to die before 75 hence the increased rate.
B) So at 35 let's buy a 10 year term instead. That will get you to 45 years old. At that point you buy a 20 year term policy and it will get you to 65. Most people live to at least 65 and the rates are much less than the scenario above.
In A above, even if you did a 20 year and then a 10 year to get you to 65 its going to cost more than example B.
There are many ways to do this and there is not one catch all answer. You have to factor in your home equity now vs later, other assets and etc, who are you're trying to protect if you die and how much money they will need. I'm just trying to get you to plan more than one step. It's all a game of what ifs and the insurance companies are just playing it by the statistics.
I have a Farmers policy. I found it interesting that suicide is not covered for the first 2 years. However after that it is 100% covered without question.
With the above, buying 20 to 30 yr term should take you to retirement. In that scenerio you would not need life insurance as your benificaries will simply live off your retirement savings.
I have work provided life insurance but it is only 50k. I don't need it since I have no dependents. It will go to my parents if I predecease them.
Glad to, it is a little lengthy and hard to condense. My father had a term policy with them for years. He had two heart attacks and ended up in the hospital. I'm the power of attorney for him that was set up years ago. My Astranged sister shows up with his policies and gets him to unknowing sign them over. Liberty Mutual sends letter acknowledgeing transfer of beneficiary, and paid out 50 percent of value. I call them, they say provide power of attorney papers, letter form doctor that he was incapable of understanding signing, and provide a certified letter that I certified I was the POA. I provided all they asked to reinstate the policy. They denied my request. I insisted for a copy of paper my pop signed, they sent it. What a joke. Obviously he was not in any state to sign anything, along with it not being filled out correctly. I'm currently in touch with SEC VA, insurance commission. I can't wait to take papers to court if I have to.
You may end up with a pay out. Good job getting the insurance commission involved
You can borrow off whole life insurance, but not term.
Let's say that I take on a mortgage, and pay the whole thing with by borrowing off my whole life insurance. Depending on the interest rate, you likely save a chunk of change since mortgage interest is ridiculous.
Let's say that I take on a mortgage, and pay the whole thing with by borrowing off my whole life insurance. Depending on the interest rate, you likely save a chunk of change since mortgage interest is ridiculous.
Let’s take an example:
$1 mill whole ~ 300 month.
$240 more a month, $200 goes to cash saving with less than 2% interest? $40 goes to fees. In 20 years that equals $60,000
If you want to borrow you need to pay interest.
When you die, the money saved does Not go to your family.
$1 mill term ~ $60 month.
$240 can be invested at 10% interest or more. 20 years would be about $180,000.
If you need to extra money you cash out investments and put it back since it’s still your money.
If you die your family gets the policy pay plus your investments.
Which one looks better to you?
If you have young kids, you may need more coverage even longer.
It's meant to replace your income should you pass away. When your kids are grown and your house is paid for, obviously, you don't need that much.
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