Posted: 9/21/2014 11:30:28 PM EDT
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Generally speaking, life insurance does not cover suicide or death resultant from criminal acts.
Does life insurance still pay out if the decedent expired as a result of their actions causing a traffic collision? |
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Quoted: Yes, just because an accident is your fault, that would not void your coverage as long as it really is an accident. The insurer would likely look into the accident to consider whether it was suicide staged to look like an accident. |
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Generally speaking, life insurance does not cover suicide or death resultant from criminal acts. Does life insurance still pay out if the decedent expired as a result of their actions causing a traffic collision? Don't quote me, but normally it is 2 year waiting period for a payout if you off yourself. Read your policy it's all in there. Every policy is different. Op, it sounds like you should talk to someone. |
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Generally speaking, life insurance does not cover suicide or death resultant from criminal acts. Does life insurance still pay out if the decedent expired as a result of their actions causing a traffic collision? My life insurance has 2-years from the start where it won't pay out for offing yourself. Since I've had my policy longer than 2 years, even in a suicide my wife would take the payout. I made my agent spell out exactly what circumstances they would or would not pay because of. Withholding medical information and suicide within 2 years are the only reasons they would not. ETA: My gut says they would pay out - but if you hurt anyone else in that accident they or their family would sue the beneficiary anyway. |
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Well that's disheartening since my agent is in the middle of talking me into a big ole policy. I lost a cousin in a single car accident years ago, I know his mother went through hell with the insurance agent. The very weekend he passed away, she was fielding calls from insurance agents and having to raid his medicine cabinet to list off every thing he was on (prescribed, legit medication). |
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. |
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Well that's disheartening since my agent is in the middle of talking me into a big ole policy. I lost a cousin in a single car accident years ago, I know his mother went through hell with the insurance agent. The very weekend he passed away, she was fielding calls from insurance agents and having to raid his medicine cabinet to list off every thing he was on (prescribed, legit medication). Quoted:
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Well that's disheartening since my agent is in the middle of talking me into a big ole policy. I lost a cousin in a single car accident years ago, I know his mother went through hell with the insurance agent. The very weekend he passed away, she was fielding calls from insurance agents and having to raid his medicine cabinet to list off every thing he was on (prescribed, legit medication). Not saying it's not true, but I have a very hard time believing that. I have worked with claims and families and have never done/seen such a thing. |
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Well that's disheartening since my agent is in the middle of talking me into a big ole policy. I lost a cousin in a single car accident years ago, I know his mother went through hell with the insurance agent. The very weekend he passed away, she was fielding calls from insurance agents and having to raid his medicine cabinet to list off every thing he was on (prescribed, legit medication). Quoted:
Quoted:
When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Well that's disheartening since my agent is in the middle of talking me into a big ole policy. I lost a cousin in a single car accident years ago, I know his mother went through hell with the insurance agent. The very weekend he passed away, she was fielding calls from insurance agents and having to raid his medicine cabinet to list off every thing he was on (prescribed, legit medication). There are some insurance companies who don't like to pay out and are assholes, there are some who pay out because it is their end of the deal if someone dies. After it is all said and done, they have to honor their contract. So for them not to pay due to a reason that isn't listed, that would be a 1st for me. Please tell me he isn't trying to put you into a whole life policy? |
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Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. Quoted:
Quoted:
When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. I was wondering about that, because I know the whole life policy is an insurance salesman's favorite product and unless your premiums lapse, it is going to pay out upon death. |
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I was wondering about that, because I know the whole life policy is an insurance salesman's favorite product and unless your premiums lapse, it is going to pay out upon death. Quoted:
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Quoted:
When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. I was wondering about that, because I know the whole life policy is an insurance salesman's favorite product and unless your premiums lapse, it is going to pay out upon death. Different advisors/planners have different favorite products. The nice thing about whole life is guaranteed premiums for guaranteed death benefit. Some, like myself, prefer universal life because it is more flexible, and can higher rates of return with internal cash value. I personally have term and a universal that I over fund. Some of my clients have mixes term, universal, and whole. It al depends on what you want to accomplish and can afford. |
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There are some insurance companies who don't like to pay out and are assholes, there are some who pay out because it is their end of the deal if someone dies. After it is all said and done, they have to honor their contract. Please tell me he isn't trying to put you into a whole life policy? Quoted:
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Quoted:
When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Well that's disheartening since my agent is in the middle of talking me into a big ole policy. I lost a cousin in a single car accident years ago, I know his mother went through hell with the insurance agent. The very weekend he passed away, she was fielding calls from insurance agents and having to raid his medicine cabinet to list off every thing he was on (prescribed, legit medication). There are some insurance companies who don't like to pay out and are assholes, there are some who pay out because it is their end of the deal if someone dies. After it is all said and done, they have to honor their contract. Please tell me he isn't trying to put you into a whole life policy? Naw, I currently have a yearly renewal, so they're talking me into locking down a 20yr term policy in the next few years before I hit the next shitty age number. Considering I could lock in the payment AND I'm in a better weight class since I started the policy, it makes sense. But I'm still taking my time researching it a bit more. ETA: The way they're explaining it - I could double my life insurance, lock it in for 20 years, and the price would increase by $3/mo if I check out health wise. |
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Different advisors/planners have different favorite products. The nice thing about whole life is guaranteed premiums for guaranteed death benefit. Some, like myself, prefer universal life because it is more flexible, and can higher rates of return with internal cash value. I personally have term and a universal that I over fund. Some of my clients have mixes term, universal, and whole. It al depends on what you want to accomplish and can afford. Quoted:
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Quoted:
When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. I was wondering about that, because I know the whole life policy is an insurance salesman's favorite product and unless your premiums lapse, it is going to pay out upon death. Different advisors/planners have different favorite products. The nice thing about whole life is guaranteed premiums for guaranteed death benefit. Some, like myself, prefer universal life because it is more flexible, and can higher rates of return with internal cash value. I personally have term and a universal that I over fund. Some of my clients have mixes term, universal, and whole. It al depends on what you want to accomplish and can afford. Unless you are using a whole/universal life for a LIRP or you are using life insurance to fund your estate tax bill because you are UHNW, or you are using it because you can't get traditional Long term care, you are going to really try hard to convince me whole/universal life is worth it. I am not saying it's a good tool, but normally it is sold for the wrong reasons. |
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Unless you are using a whole/universal life for a LIRP or you are using life insurance to fund your estate tax bill because you are UHNW, or you are using it because you can't get traditional Long term care, you are going to really try hard to convince me whole/universal life is worth it. I am not saying it's a good tool, but normally it is sold for the wrong reasons. Quoted:
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. I was wondering about that, because I know the whole life policy is an insurance salesman's favorite product and unless your premiums lapse, it is going to pay out upon death. Different advisors/planners have different favorite products. The nice thing about whole life is guaranteed premiums for guaranteed death benefit. Some, like myself, prefer universal life because it is more flexible, and can higher rates of return with internal cash value. I personally have term and a universal that I over fund. Some of my clients have mixes term, universal, and whole. It al depends on what you want to accomplish and can afford. Unless you are using a whole/universal life for a LIRP or you are using life insurance to fund your estate tax bill because you are UHNW, or you are using it because you can't get traditional Long term care, you are going to really try hard to convince me whole/universal life is worth it. I am not saying it's a good tool, but normally it is sold for the wrong reasons. There is a big reason to have those types of policies without those scenarios, and it has to do with the cash value. The first is that you can withdrawal cash value in a very tax efficient way. When you make withdrawals, the basis comes out first, meaning the tax free portion comes out first. That is a big deal and the main reason I recommend people use those products. The second is that cash value in life insurance does not count against FASFA when you have children going into college. The third is that in TX, annuities and life insurance is "creditor/predator" protected. IM me if you would like more details. Life insurance can be an amazing tool, but it is demonized for a few main reasons. First, it has been sold in the wrong way. Do not buy LI from someone who just sells insurance. Find someone who deals in comprehensive planning and offered virtually anything/everything. Second, it is not as sexy as say stocks/bonds. Finally, they can be complex instruments compared to other financial products. I might do an "ask a financial advisor anything thread" sometime and dispel some misnomers about the industry/products. |
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There is a big reason to have those types of policies without those scenarios, and it has to do with the cash value. The first is that you can withdrawal cash value in a very tax efficient way. When you make withdrawals, the basis comes out first, meaning the tax free portion comes out first. That is a big deal and the main reason I recommend people use those products. The second is that cash value in life insurance does not count against FASFA when you have children going into college. The third is that in TX, annuities and life insurance is "creditor/predator" protected. IM me if you would like more details. Life insurance can be an amazing tool, but it is demonized for a few main reasons. First, it has been sold in the wrong way. Do not buy LI from someone who just sells insurance. Find someone who deals in comprehensive planning and offered virtually anything/everything. Second, it is not as sexy as say stocks/bonds. Finally, they can be complex instruments compared to other financial products. I might do an "ask a financial advisor anything thread" sometime and dispel some misnomers about the industry/products. I understand all of those high points, but I am sure you have seen how much the internal return rates have been sucking, I guess unless you go with a variable. 
That would be a very informative thread, but compliance would have a stroke with you doing that. 
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I understand all of those high points, but I am sure you have seen how much the internal return rates have been sucking, I guess unless you go with a variable.
That would be a very informative thread, but compliance would have a stroke with you doing that. Quoted:
Quoted:
There is a big reason to have those types of policies without those scenarios, and it has to do with the cash value. The first is that you can withdrawal cash value in a very tax efficient way. When you make withdrawals, the basis comes out first, meaning the tax free portion comes out first. That is a big deal and the main reason I recommend people use those products. The second is that cash value in life insurance does not count against FASFA when you have children going into college. The third is that in TX, annuities and life insurance is "creditor/predator" protected. IM me if you would like more details. Life insurance can be an amazing tool, but it is demonized for a few main reasons. First, it has been sold in the wrong way. Do not buy LI from someone who just sells insurance. Find someone who deals in comprehensive planning and offered virtually anything/everything. Second, it is not as sexy as say stocks/bonds. Finally, they can be complex instruments compared to other financial products. I might do an "ask a financial advisor anything thread" sometime and dispel some misnomers about the industry/products. I understand all of those high points, but I am sure you have seen how much the internal return rates have been sucking, I guess unless you go with a variable.
That would be a very informative thread, but compliance would have a stroke with you doing that. I would just have to be mindful not to give advice. Internal rates can be decent in UL, and of course variable UL has been good. It depends on what level of risk you compare it to. A UL versus the S&P 500 will not look good, but compared to most CDs can look very good. It's all abut risk tolerance and time horizon. |
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I would just have to be mindful not to give advice. Internal rates can be decent in UL, and of course variable UL has been good. It depends on what level of risk you compare it to. A UL versus the S&P 500 will not look good, but compared to most CDs can look very good. Quoted:
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There is a big reason to have those types of policies without those scenarios, and it has to do with the cash value. The first is that you can withdrawal cash value in a very tax efficient way. When you make withdrawals, the basis comes out first, meaning the tax free portion comes out first. That is a big deal and the main reason I recommend people use those products. The second is that cash value in life insurance does not count against FASFA when you have children going into college. The third is that in TX, annuities and life insurance is "creditor/predator" protected. IM me if you would like more details. Life insurance can be an amazing tool, but it is demonized for a few main reasons. First, it has been sold in the wrong way. Do not buy LI from someone who just sells insurance. Find someone who deals in comprehensive planning and offered virtually anything/everything. Second, it is not as sexy as say stocks/bonds. Finally, they can be complex instruments compared to other financial products. I might do an "ask a financial advisor anything thread" sometime and dispel some misnomers about the industry/products. I understand all of those high points, but I am sure you have seen how much the internal return rates have been sucking, I guess unless you go with a variable.
That would be a very informative thread, but compliance would have a stroke with you doing that. I would just have to be mindful not to give advice. Internal rates can be decent in UL, and of course variable UL has been good. It depends on what level of risk you compare it to. A UL versus the S&P 500 will not look good, but compared to most CDs can look very good. lol, to this day, I still can't comprehend why a long term investor would have bought one in the last 5 years. |
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There is a big reason to have those types of policies without those scenarios, and it has to do with the cash value. The first is that you can withdrawal cash value in a very tax efficient way. When you make withdrawals, the basis comes out first, meaning the tax free portion comes out first. That is a big deal and the main reason I recommend people use those products. The second is that cash value in life insurance does not count against FASFA when you have children going into college. The third is that in TX, annuities and life insurance is "creditor/predator" protected. IM me if you would like more details. Life insurance can be an amazing tool, but it is demonized for a few main reasons. First, it has been sold in the wrong way. Do not buy LI from someone who just sells insurance. Find someone who deals in comprehensive planning and offered virtually anything/everything. Second, it is not as sexy as say stocks/bonds. Finally, they can be complex instruments compared to other financial products. I might do an "ask a financial advisor anything thread" sometime and dispel some misnomers about the industry/products. This. A whole life policy does make sense in certain instances. I have a sister who is a surgeon and it makes very good sense for her to have a whole life policy due to the asset protection it affords her. If she was in a lower income bracket and was not in such a high risk occupation, it would make less sense for her. |
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This. A whole life policy does make sense in certain instances. I have a sister who is a surgeon and it makes very good sense for her to have a whole life policy due to the asset protection it affords her. If she was in a lower income bracket and was not in such a high risk occupation, it would make less sense for her. Quoted:
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There is a big reason to have those types of policies without those scenarios, and it has to do with the cash value. The first is that you can withdrawal cash value in a very tax efficient way. When you make withdrawals, the basis comes out first, meaning the tax free portion comes out first. That is a big deal and the main reason I recommend people use those products. The second is that cash value in life insurance does not count against FASFA when you have children going into college. The third is that in TX, annuities and life insurance is "creditor/predator" protected. IM me if you would like more details. Life insurance can be an amazing tool, but it is demonized for a few main reasons. First, it has been sold in the wrong way. Do not buy LI from someone who just sells insurance. Find someone who deals in comprehensive planning and offered virtually anything/everything. Second, it is not as sexy as say stocks/bonds. Finally, they can be complex instruments compared to other financial products. I might do an "ask a financial advisor anything thread" sometime and dispel some misnomers about the industry/products. This. A whole life policy does make sense in certain instances. I have a sister who is a surgeon and it makes very good sense for her to have a whole life policy due to the asset protection it affords her. If she was in a lower income bracket and was not in such a high risk occupation, it would make less sense for her. I hope she is maxing out her SEP/SIMPLE/401K also. |
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lol, to this day, I still can't comprehend why a long term investor would have bought one in the last 5 years. Quoted:
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There is a big reason to have those types of policies without those scenarios, and it has to do with the cash value. The first is that you can withdrawal cash value in a very tax efficient way. When you make withdrawals, the basis comes out first, meaning the tax free portion comes out first. That is a big deal and the main reason I recommend people use those products. The second is that cash value in life insurance does not count against FASFA when you have children going into college. The third is that in TX, annuities and life insurance is "creditor/predator" protected. IM me if you would like more details. Life insurance can be an amazing tool, but it is demonized for a few main reasons. First, it has been sold in the wrong way. Do not buy LI from someone who just sells insurance. Find someone who deals in comprehensive planning and offered virtually anything/everything. Second, it is not as sexy as say stocks/bonds. Finally, they can be complex instruments compared to other financial products. I might do an "ask a financial advisor anything thread" sometime and dispel some misnomers about the industry/products. I understand all of those high points, but I am sure you have seen how much the internal return rates have been sucking, I guess unless you go with a variable.
That would be a very informative thread, but compliance would have a stroke with you doing that. I would just have to be mindful not to give advice. Internal rates can be decent in UL, and of course variable UL has been good. It depends on what level of risk you compare it to. A UL versus the S&P 500 will not look good, but compared to most CDs can look very good. lol, to this day, I still can't comprehend why a long term investor would have bought one in the last 5 years. Risk tolerance and liquidity. If you are a conservative investor, or have a portion of your money you want in a no risk/volatility bucket, where do you go? And I agree, the answer isn't a CD. 
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This. A whole life policy does make sense in certain instances. I have a sister who is a surgeon and it makes very good sense for her to have a whole life policy due to the asset protection it affords her. If she was in a lower income bracket and was not in such a high risk occupation, it would make less sense for her. Quoted:
Quoted:
There is a big reason to have those types of policies without those scenarios, and it has to do with the cash value. The first is that you can withdrawal cash value in a very tax efficient way. When you make withdrawals, the basis comes out first, meaning the tax free portion comes out first. That is a big deal and the main reason I recommend people use those products. The second is that cash value in life insurance does not count against FASFA when you have children going into college. The third is that in TX, annuities and life insurance is "creditor/predator" protected. IM me if you would like more details. Life insurance can be an amazing tool, but it is demonized for a few main reasons. First, it has been sold in the wrong way. Do not buy LI from someone who just sells insurance. Find someone who deals in comprehensive planning and offered virtually anything/everything. Second, it is not as sexy as say stocks/bonds. Finally, they can be complex instruments compared to other financial products. I might do an "ask a financial advisor anything thread" sometime and dispel some misnomers about the industry/products. This. A whole life policy does make sense in certain instances. I have a sister who is a surgeon and it makes very good sense for her to have a whole life policy due to the asset protection it affords her. If she was in a lower income bracket and was not in such a high risk occupation, it would make less sense for her. Yep. |
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You seem ... familiar. Quoted:
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Generally speaking, life insurance does not cover suicide or death resultant from criminal acts. Does life insurance still pay out if the decedent expired as a result of their actions causing a traffic collision? You seem ... familiar. Oh shit! |
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Oh shit! Quoted:
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Generally speaking, life insurance does not cover suicide or death resultant from criminal acts. Does life insurance still pay out if the decedent expired as a result of their actions causing a traffic collision? You seem ... familiar. Oh shit! Norcal doesn't miss a thing. 
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Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. Quoted:
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. Term only pays 1-2%? I have a Fidelity term policy. Should I be concerned? |
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Term only pays 1-2%? I have a Fidelity term policy. Should I be concerned? Quoted:
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. Term only pays 1-2%? I have a Fidelity term policy. Should I be concerned? Only if you lied on the application and it's less than two years in force when you die. That statement does NOT mean 98% of all claims are denied--it only means of all the term policies issued, only 1-2% end up paying a claim. The other 98% are either dropped or expire before death occurs. 
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Quoted: You seem ... familiar. Quoted: Quoted: Generally speaking, life insurance does not cover suicide or death resultant from criminal acts. Does life insurance still pay out if the decedent expired as a result of their actions causing a traffic collision? You seem ... familiar. |
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Term only pays 1-2%? I have a Fidelity term policy. Should I be concerned? Quoted:
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. Term only pays 1-2%? I have a Fidelity term policy. Should I be concerned? No. What I mean is out of every 100 policies bought, only 1 person will die during the term, thus resulting in a claim. Most of the others either lapse due to non payment or outlive the term, which is a good thing. |
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Only if you lied on the application and it's less than two years in force when you die. That statement does NOT mean 98% of all claims are denied--it only means of all the term policies issued, only 1-2% end up paying a claim. The other 98% are either dropped or expire before death occurs. Quoted:
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. Term only pays 1-2%? I have a Fidelity term policy. Should I be concerned? Only if you lied on the application and it's less than two years in force when you die. That statement does NOT mean 98% of all claims are denied--it only means of all the term policies issued, only 1-2% end up paying a claim. The other 98% are either dropped or expire before death occurs. Shit, I couldn't have lied if I wanted to. They pulled med records, pharm records, etc. Almost as invasive as buying a gun. |
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No. What I mean is out of every 100 policies bought, only 1 person will die during the term, thus resulting in a claim. Most of the others either lapse due to non payment or outlive the term, which is a good thing. Quoted:
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When looking into this a bit ago. Statistically life insurance only pays out 1-2% of all claims according to our agent. Wrong. Term only pays out 1-2% of all policies, but most claims are paid out, with the rare exception of suicide or other situation. In my almost 7 years in financial services I have never seen one benefit not paid out. Term only pays 1-2%? I have a Fidelity term policy. Should I be concerned? No. What I mean is out of every 100 policies bought, only 1 person will die during the term, thus resulting in a claim. Most of the others either lapse due to non payment or outlive the term, which is a good thing. Gotcha, thanks. |
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This is what I learned talking to my insurance guy. I won't say Iv'e got it 100% correct so don't beat me up too bad, just correct me where I'm wrong. If you have a term policy now and have the option to convert it, take advantage of it. Term is what it says, you pay and if you don't die within the term, the ins. company keeps the money and you have nothing to show for it. That's the reason it's cheap. Term is good to have to cover large debt like a mortgage or business venture, basically large debts that you're family might be burdened with when you're young. A short term CYA measure. Once those assets are paid for then it's not as useful. Some term policies have the option to covert to a universal/whole/20 pay type of policy and you retain some of what you paid in. Remember, the older you get, the more the premiums increase, they aren't a fixed dollar amount. With whole life or universal life, you build cash value and even if you quit paying at some point, you'll have a portion of the face value of the policy that is paid up. You can also use the cash value to pay the premium if you're laid off. Problem comes in with whole life is that you typically pay until you're 95 or your whole life. You have to think about how you're going to be able to keep paying that premium when you hit 65. With universal life once you hit a certain age, 71 seems to be pretty typical, the cash value goes to shit. You can over fund the policy and pay it forward while you're at an income earning age. But again, after a certain age, you have the face value of the policy upon your death but no cash value. Universal life is kind of like a term policy that builds cash value. On the plus side the premiums are locked in so you pay the same thing as you age. For you really young guys, 20-30's, the policy to get is a 20 pay policy. 20 years/payments (the typical length of a term policy) and it's paid off. It retains cash value, most pay a dividend which you can take as a cash payment or roll back into the policy. If for some reason you can't pay the premiums, you can cash out or you can use the cash value to pay the premiums until you have income again. Or simply keep the policy as is without paying any more premiums and it will retain what ever the portion of the face value of paid up insurance you've paid to date. Figure if you're 30, you'd be paid off at 50 and not have to worry about it when you hit retirement. You can also pre-pay as well, just like a mortgage, and pay your policy off in advance. It's not cheap, but it's cheaper when you're young. Plus you have something to show for the money spent. All but term LI has typically has a provision allowing you to borrow against the policy. You have to pay back what you borrow with interest. As an investment vehicle, LI is a generally a poor choice. Principal got hosed a few years back for pitching Universal Life as an annuity. A class action suit cost them. If you're able to save money using a 401K, IRA etc. and you amass a decent retirement savings, no heirs, no debt, decent assets like a home & property, LI may not be that useful to you. If you have a family, lots of debt and little savings, LI can take care of your family, make sure they have a roof over their head, get your kids through college, take care of the bills while they grieve your loss and try to get their life back to normal etc.
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I think most people are underinsured.
I have a small ongoing (I forget if it's whole, universal or whatever) policy for $50 to bury me no matter my age. My employer has a $100 policy it maintains (and pays out to my family) in case I die. I have a term life policy that's about 10 times my annual income. I fly, scuba dive, and rock climb so probably a decent idea to have some insurance in place for my kids. |
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Whole life can provide substantial guaranteed tax-free cash flow out past year 30 or so (or earlier if constructed properly). There are strategies that can really make it attractive as a retirement plan. Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. |
| Typically term policies never pay out. Whole life policies designed to take care of final expenses are a different matter and are generally worth a whole lot less than those bargain prices on hundreds of thousands of dollars term policies. I have a 50k whole life policy that costs me 70 bucks a month, for the rest of my life. At least it builds a cash value, not that I will ever cash it in. I'll never see it, but I don't want my kids burdened. |
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Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. Quoted:
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Whole life can provide substantial guaranteed tax-free cash flow out past year 30 or so (or earlier if constructed properly). There are strategies that can really make it attractive as a retirement plan. Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. you would have to call an agent and get an illustration. you have a few choices how to do it, but if you think using LI as a investment is going to be the best retirement tool, do some more research. |
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You seem ... familiar. Quoted:
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Generally speaking, life insurance does not cover suicide or death resultant from criminal acts. Does life insurance still pay out if the decedent expired as a result of their actions causing a traffic collision? You seem ... familiar. Is there an insurance for that? 
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Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. Quoted:
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Whole life can provide substantial guaranteed tax-free cash flow out past year 30 or so (or earlier if constructed properly). There are strategies that can really make it attractive as a retirement plan. Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. That is the best book on the subject. Confessions of a CPA is a good one too. |
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you would have to call an agent and get an illustration. you have a few choices how to do it, but if you think using LI as a investment is going to be the best retirement tool, do some more research. Quoted:
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Whole life can provide substantial guaranteed tax-free cash flow out past year 30 or so (or earlier if constructed properly). There are strategies that can really make it attractive as a retirement plan. Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. you would have to call an agent and get an illustration. you have a few choices how to do it, but if you think using LI as a investment is going to be the best retirement tool, do some more research. |
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you would have to call an agent and get an illustration. you have a few choices how to do it, but if you think using LI as a investment is going to be the best retirement tool, do some more research. Quoted:
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Whole life can provide substantial guaranteed tax-free cash flow out past year 30 or so (or earlier if constructed properly). There are strategies that can really make it attractive as a retirement plan. Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. you would have to call an agent and get an illustration. you have a few choices how to do it, but if you think using LI as a investment is going to be the best retirement tool, do some more research. I have a fair understand of the vehicle (my day job is as a CFO) but I was looking for a book or source on the web that was unbiased and discusses candidly these things. |
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you would have to call an agent and get an illustration. you have a few choices how to do it, but if you think using LI as a investment is going to be the best retirement tool, do some more research. Quoted:
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Whole life can provide substantial guaranteed tax-free cash flow out past year 30 or so (or earlier if constructed properly). There are strategies that can really make it attractive as a retirement plan. Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. you would have to call an agent and get an illustration. you have a few choices how to do it, but if you think using LI as a investment is going to be the best retirement tool, do some more research. Some whole life policies are specifically built to be overfunded for purposes of retirement cash flow. Ohio National has an awesome 10pay product that does that. |
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Quoted: Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. Quoted: Quoted: Whole life can provide substantial guaranteed tax-free cash flow out past year 30 or so (or earlier if constructed properly). There are strategies that can really make it attractive as a retirement plan. Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. Ha! That guy's other book, "The Retirement Miracle" and the guy that "gave" it to me cost me about $6000 before I realized IUL wasn't for me . You'd be much better off reading The Boglehead's Guide to Investing. The fact of the matter is the vast majority of permanent life insurance policies are sold to people who would probably be much better off without them. After educating myself, I'm not even sure the guy who sold me the IUL and WL policies I bought completely understood them. If you're not maxing out your tax advantaged plans (401k, Roth IRA/backdoor Roth IRA, etc.) and aren't going to be subject to the estate tax when you die (the cutoff is about $11 million for married couples iirc), then there are probably much better things you can do with your money than permanent insurance. As a general rule, when it comes to retirement savings, simpler is usually better. With permanent life insurance especially, you need to know exactly what you're buying before you buy it. Some more reading on the subject (the site is directed toward physicians, but the vast majority of the advice applies to anyone. Obviously the author isn't a fan of permanent life insurance): Debunking the Myths of Whole Life Insurance Don't mix Insurance and Investing Rebutting the Arguments for Indexed Universal Life Insurance An Index Universal Life Insurance Illustration 5 Reasons Not to Buy IUL Insurance If you read those 5 articles and think an IUL or WL policy is a good thing for you, you just might be right. For anybody considering permanent life insurance, learn from my mistake. Do A LOT of research before you let somebody sell you one of these policies. |
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Some whole life policies are specifically built to be overfunded for purposes of retirement cash flow. Ohio National has an awesome 10pay product that does that. Quoted:
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Whole life can provide substantial guaranteed tax-free cash flow out past year 30 or so (or earlier if constructed properly). There are strategies that can really make it attractive as a retirement plan. Have any sources you could direct us to in order to learn about that? I've got a book by Patrick Kelly called "Tax Free Retirement" but I've not read it. you would have to call an agent and get an illustration. you have a few choices how to do it, but if you think using LI as a investment is going to be the best retirement tool, do some more research. Some whole life policies are specifically built to be overfunded for purposes of retirement cash flow. Ohio National has an awesome 10pay product that does that. It's called a LIRP (Life insurance retirement plan). You over fund then take out a loan off of the cash value. They do it like that to prevent it from becoming a modified endowment contract and that case the IRS tax code will rape you in taxes. |