Posted: 1/28/2015 6:15:15 PM EDT
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Closing on my first house in about 2 months and I'm thinking it's time to get serious about my financial future in a few areas.
The only thing I really know is term>whole life. So how to calculate how much coverage I really need? I'm thinking that if I got hit by a bus my wife should be able to wipe the debt slate clean and put me in the ground. Add up all debts and final expenses and pick the closest coverage number? Also, where does one begin shopping for insurance? Looks like there are is no shortage of companies selling it, so how do you pick one? |
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Just going through an update on mine. Our life situation has changed in the last few years since I put the original policies in place and both my wife and I need much more than we currently have, so I'm updating both of us. Best quotes we've gotten were from Ohio National. Next below that was Liberty Mutual who has our current auto and homeowners policies, but it was totally night and day. I'm getting 2x the coverage for nearly same price. State Farm has our current term policies and their quotes sucked.
10x yearly salary is a good starting point. If you have kids or, like our situation, special needs in the family, you should go up from there. We went through an independent agent who is a family friend and he helped us get the best rates as well as with advice from knowing our personal situation. |
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Where can I get this 10% return you speak of? Quoted:
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10x yearly salary so your family can get 10% year on it and it's like you never left. Where can I get this 10% return you speak of? Many funds average 8-9% over several years. Doesn't mean it's going to happen this year. 
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Quoted: 10x yearly salary so your family can get 10% year on it and it's like you never left. Double that. No one is getting 10% year in and year out while drawing down. Well maybe somebody is but its not the 99.5%. 20x and expect to get 5% while drawing out. Its possible to find fixed annutites or you can do simple income ladders to get there. Anything else is just risk, which is what your kids and so do not need. My wife and I both do 20x term along with a much smaller fixed policy and of course all the usual suspect investments.
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Term life is cheaper and makes more sense in many cases. My wife has a whole life policy that we don't even need. One thing can be said about the whole life, it has NOT lost money. We don't even pay monthly dues anymore. Just a chunk sitting there for retirement. You need to be disciplined about whole life. You gotta send it and forget it. If you borrow on it for kids college, RV, bigger house, etc., then it is probably not the right thing to do. I have just enough term life to pay for a good party and cover the wife until she hooks up with another husband. I know she will. (I have zero liabilities)
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Double that. No one is getting 10% year in and year out while drawing down. Well maybe somebody is but its not the 99.5%. 20x and expect to get 5% while drawing out. Its possible to find fixed annutites or you can do simple income ladders to get there. Anything else is just risk, which is what your kids and so do not need. My wife and I both do 20x term along with a much smaller fixed policy and of course all the usual suspect investments. Quoted:
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10x yearly salary so your family can get 10% year on it and it's like you never left. Double that. No one is getting 10% year in and year out while drawing down. Well maybe somebody is but its not the 99.5%. 20x and expect to get 5% while drawing out. Its possible to find fixed annutites or you can do simple income ladders to get there. Anything else is just risk, which is what your kids and so do not need. My wife and I both do 20x term along with a much smaller fixed policy and of course all the usual suspect investments. That is a lot of life insurance. |
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Term seems like the clear winner to me. Am I missing something? Quoted:
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Permanent insurance vs term insurance, what the conundrum. Term seems like the clear winner to me. Am I missing something? I Not saying that, I'm just saying that's one of the big decisions when buying insurance |
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I calculated a living "wage" that my wife could live on and support the kids until she was able to go back to work. Add that value to the mortgage. Done.
ETA: Be honest. Do you think your wife would eventually move on and find someone else at some point? Then you don't need to be setting up a lavish savings account for her next man's boat/condo/camper. This is money to get her through a tough time, not the rest of her life. |
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I Not saying that, I'm just saying that's one of the big decisions when buying insurance Quoted:
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Permanent insurance vs term insurance, what the conundrum. Term seems like the clear winner to me. Am I missing something? I Not saying that, I'm just saying that's one of the big decisions when buying insurance Term insurance is the cheapest way to buy life insurance. Pick your face amount and years of coverage, pay your premiums and if you die within the the coverage period your beneficiaries get paid. That's it. At the end of the coverage period there is nothing coming back to you. Many contracts have a conversion option that allows you to convert your term policy to a permanent contract without going through underwriting. The premium is based on your attained age (at the time of conversion) and your rate class from the original issuance. Term insurance makes sense in many cases, it also has its drawbacks. Ultimately it's hard to argue with low cost if you're trying to meet a simple death benefit need only. Permanent insurance is more expensive than term, however there are potential advantages such as being able to add a long term care rider or return of premium rider, you can use the cash value as supplemental retirement income...these contracts are typically utilized in more advanced planning scenarios such as estate planning or deferred comp programs. Example: Premium Financing. Say a guy needs $50,000,000.00 worth of coverage - fuck that premium. Like $300k year if he's healthy. He can borrow the premium to have a paid up contract and use the cash value to invest in an S&P Index fund, assume 6% annual return, 15 years later he's sitting on several million +/- cash value, borrows enough from the policy to pay off the loan, say $1.5mm, now he's got maybe $3mm cash value that he can take loans against, never pay back (cough, tax free money, cough), face amount is reduced by outstanding loan balance. He croaks and family gets whatever death benefit is leftover. This is an extreme example and probably not the best as I omitted a number of detail factors but the fact is that permanent insurance has its place. But that doesn't mean it's the best for you. My advice is run for life from an agent that is ONLY talking about permanent coverage. A good agent is more of an adviser and confidant and will show you everything from every A rated carrier approved to do business in your state. In other words: term = cheap coverage for death benefit only. Permanent = more expensive but with additional features and benefits. IE do you want the contractors package Ford F-150 or the Raptor? Me personally: I have term insurance (about 75% of the face amount I have in force) and permanent insurance. There's an element of speculation involved in the sense that if you're thinking you just want coverage until the house is paid off or kids are out of the house - very few are happy to let it go when the day comes and want to keep something in force. But maybe they now have cancer or heart disease and are no longer insurable, it's then a coulda woulda shoulda scenario. For my purposes I make use of my permanent policy as way to stash non-qualified money and earn 5.5% and as a sort of insurance for my insurance. Debt load today + 10x gross income is a good starting point for figuring your coverage amount. Usually you'll buy more than that to account for inflation and the 6 month vacation to Hawaii your widow will need after you commit suicide with 4 rounds to the back of the head lol. Disclaimer: I'm an investment adviser who took over my dad's life insurance agency last year after he died. |
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Term seems like the clear winner to me. Am I missing something? Quoted:
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Permanent insurance vs term insurance, what the conundrum. Term seems like the clear winner to me. Am I missing something? Depends on your goals. I have both. The only reason I have term is because I'm young and have locked in insurance value in the possible chance that my health severely declines. I prefer cash value because it is a hell of a tool for financing things. Gives a decently nice return as well. |
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I calculated a living "wage" that my wife could live on and support the kids until she was able to go back to work. Add that value to the mortgage. Done. ETA: Be honest. Do you think your wife would eventually move on and find someone else at some point? Then you don't need to be setting up a lavish savings account for her next man's boat/condo/camper. This is money to get her through a tough time, not the rest of her life. I imagine she would. What I am thinking is adding up the mortgage, final expenses, car notes, credit card balances and coming up with a number. For the sake of argument, let's call it $300,000. Then I buy a $300,000 term policy. So if I get hit by a bus or whatever 2 days after we close on the house, the wife can be debt free with a roof over her head and concentrate on raising the kids with her modest income. |
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I calculated a living "wage" that my wife could live on and support the kids until she was able to go back to work. Add that value to the mortgage. Done. ETA: Be honest. Do you think your wife would eventually move on and find someone else at some point? Then you don't need to be setting up a lavish savings account for her next man's boat/condo/camper. This is money to get her through a tough time, not the rest of her life. There are ways to fix that from happening |
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Term insurance is the cheapest way to buy life insurance. Pick your face amount and years of coverage, pay your premiums and if you die within the the coverage period your beneficiaries get paid. That's it. At the end of the coverage period there is nothing coming back to you. Many contracts have a conversion option that allows you to convert your term policy to a permanent contract without going through underwriting. The premium is based on your attained age (at the time of conversion) and your rate class from the original issuance. Term insurance makes sense in many cases, it also has its drawbacks. Ultimately it's hard to argue with low cost if you're trying to meet a simple death benefit need only. Permanent insurance is more expensive than term, however there are potential advantages such as being able to add a long term care rider or return of premium rider, you can use the cash value as supplemental retirement income...these contracts are typically utilized in more advanced planning scenarios such as estate planning or deferred comp programs. Example: Premium Financing. Say a guy needs $50,000,000.00 worth of coverage - fuck that premium. Like $300k year if he's healthy. He can borrow the premium to have a paid up contract and use the cash value to invest in an S&P Index fund, assume 6% annual return, 15 years later he's sitting on several million +/- cash value, borrows enough from the policy to pay off the loan, say $1.5mm, now he's got maybe $3mm cash value that he can take loans against, never pay back (cough, tax free money, cough), face amount is reduced by outstanding loan balance. He croaks and family gets whatever death benefit is leftover. This is an extreme example and probably not the best as I omitted a number of detail factors but the fact is that permanent insurance has its place. But that doesn't mean it's the best for you. My advice is run for life from an agent that is ONLY talking about permanent coverage. A good agent is more of an adviser and confidant and will show you everything from every A rated carrier approved to do business in your state. In other words: term = cheap coverage for death benefit only. Permanent = more expensive but with additional features and benefits. IE do you want the contractors package Ford F-150 or the Raptor? Me personally: I have term insurance (about 75% of the face amount I have in force) and permanent insurance. There's an element of speculation involved in the sense that if you're thinking you just want coverage until the house is paid off or kids are out of the house - very few are happy to let it go when the day comes and want to keep something in force. But maybe they now have cancer or heart disease and are no longer insurable, it's then a coulda woulda shoulda scenario. For my purposes I make use of my permanent policy as way to stash non-qualified money and earn 5.5% and as a sort of insurance for my insurance. Debt load today + 10x gross income is a good starting point for figuring your coverage amount. Usually you'll buy more than that to account for inflation and the 6 month vacation to Hawaii your widow will need after you commit suicide with 4 rounds to the back of the head lol. Disclaimer: I'm an investment adviser who took over my dad's life insurance agency last year after he died. Quoted:
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Permanent insurance vs term insurance, what the conundrum. Term seems like the clear winner to me. Am I missing something? I Not saying that, I'm just saying that's one of the big decisions when buying insurance Term insurance is the cheapest way to buy life insurance. Pick your face amount and years of coverage, pay your premiums and if you die within the the coverage period your beneficiaries get paid. That's it. At the end of the coverage period there is nothing coming back to you. Many contracts have a conversion option that allows you to convert your term policy to a permanent contract without going through underwriting. The premium is based on your attained age (at the time of conversion) and your rate class from the original issuance. Term insurance makes sense in many cases, it also has its drawbacks. Ultimately it's hard to argue with low cost if you're trying to meet a simple death benefit need only. Permanent insurance is more expensive than term, however there are potential advantages such as being able to add a long term care rider or return of premium rider, you can use the cash value as supplemental retirement income...these contracts are typically utilized in more advanced planning scenarios such as estate planning or deferred comp programs. Example: Premium Financing. Say a guy needs $50,000,000.00 worth of coverage - fuck that premium. Like $300k year if he's healthy. He can borrow the premium to have a paid up contract and use the cash value to invest in an S&P Index fund, assume 6% annual return, 15 years later he's sitting on several million +/- cash value, borrows enough from the policy to pay off the loan, say $1.5mm, now he's got maybe $3mm cash value that he can take loans against, never pay back (cough, tax free money, cough), face amount is reduced by outstanding loan balance. He croaks and family gets whatever death benefit is leftover. This is an extreme example and probably not the best as I omitted a number of detail factors but the fact is that permanent insurance has its place. But that doesn't mean it's the best for you. My advice is run for life from an agent that is ONLY talking about permanent coverage. A good agent is more of an adviser and confidant and will show you everything from every A rated carrier approved to do business in your state. In other words: term = cheap coverage for death benefit only. Permanent = more expensive but with additional features and benefits. IE do you want the contractors package Ford F-150 or the Raptor? Me personally: I have term insurance (about 75% of the face amount I have in force) and permanent insurance. There's an element of speculation involved in the sense that if you're thinking you just want coverage until the house is paid off or kids are out of the house - very few are happy to let it go when the day comes and want to keep something in force. But maybe they now have cancer or heart disease and are no longer insurable, it's then a coulda woulda shoulda scenario. For my purposes I make use of my permanent policy as way to stash non-qualified money and earn 5.5% and as a sort of insurance for my insurance. Debt load today + 10x gross income is a good starting point for figuring your coverage amount. Usually you'll buy more than that to account for inflation and the 6 month vacation to Hawaii your widow will need after you commit suicide with 4 rounds to the back of the head lol. Disclaimer: I'm an investment adviser who took over my dad's life insurance agency last year after he died. I knew you were an advisor when you mentioned a LIRP 50mil death bene eh? 
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There are ways to fix that from happening Quoted:
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I calculated a living "wage" that my wife could live on and support the kids until she was able to go back to work. Add that value to the mortgage. Done. ETA: Be honest. Do you think your wife would eventually move on and find someone else at some point? Then you don't need to be setting up a lavish savings account for her next man's boat/condo/camper. This is money to get her through a tough time, not the rest of her life. There are ways to fix that from happening Control from the grave trust. You can stipulate anything you want. Particularly that your wife can't use policy proceeds to enrich someone else if that's your choice. |
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Control from the grave trust. You can stipulate anything you want. Particularly that your wife can't use policy proceeds to enrich someone else if that's your choice. Quoted:
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I calculated a living "wage" that my wife could live on and support the kids until she was able to go back to work. Add that value to the mortgage. Done. ETA: Be honest. Do you think your wife would eventually move on and find someone else at some point? Then you don't need to be setting up a lavish savings account for her next man's boat/condo/camper. This is money to get her through a tough time, not the rest of her life. There are ways to fix that from happening Control from the grave trust. You can stipulate anything you want. Particularly that your wife can't use policy proceeds to enrich someone else if that's your choice. An ILIT also Spendthrift provisions on death benefit pay out also |
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I knew you were an advisor when you mentioned a LIRP 50mil death bene eh? Quoted:
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Permanent insurance vs term insurance, what the conundrum. Term seems like the clear winner to me. Am I missing something? I Not saying that, I'm just saying that's one of the big decisions when buying insurance Term insurance is the cheapest way to buy life insurance. Pick your face amount and years of coverage, pay your premiums and if you die within the the coverage period your beneficiaries get paid. That's it. At the end of the coverage period there is nothing coming back to you. Many contracts have a conversion option that allows you to convert your term policy to a permanent contract without going through underwriting. The premium is based on your attained age (at the time of conversion) and your rate class from the original issuance. Term insurance makes sense in many cases, it also has its drawbacks. Ultimately it's hard to argue with low cost if you're trying to meet a simple death benefit need only. Permanent insurance is more expensive than term, however there are potential advantages such as being able to add a long term care rider or return of premium rider, you can use the cash value as supplemental retirement income...these contracts are typically utilized in more advanced planning scenarios such as estate planning or deferred comp programs. Example: Premium Financing. Say a guy needs $50,000,000.00 worth of coverage - fuck that premium. Like $300k year if he's healthy. He can borrow the premium to have a paid up contract and use the cash value to invest in an S&P Index fund, assume 6% annual return, 15 years later he's sitting on several million +/- cash value, borrows enough from the policy to pay off the loan, say $1.5mm, now he's got maybe $3mm cash value that he can take loans against, never pay back (cough, tax free money, cough), face amount is reduced by outstanding loan balance. He croaks and family gets whatever death benefit is leftover. This is an extreme example and probably not the best as I omitted a number of detail factors but the fact is that permanent insurance has its place. But that doesn't mean it's the best for you. My advice is run for life from an agent that is ONLY talking about permanent coverage. A good agent is more of an adviser and confidant and will show you everything from every A rated carrier approved to do business in your state. In other words: term = cheap coverage for death benefit only. Permanent = more expensive but with additional features and benefits. IE do you want the contractors package Ford F-150 or the Raptor? Me personally: I have term insurance (about 75% of the face amount I have in force) and permanent insurance. There's an element of speculation involved in the sense that if you're thinking you just want coverage until the house is paid off or kids are out of the house - very few are happy to let it go when the day comes and want to keep something in force. But maybe they now have cancer or heart disease and are no longer insurable, it's then a coulda woulda shoulda scenario. For my purposes I make use of my permanent policy as way to stash non-qualified money and earn 5.5% and as a sort of insurance for my insurance. Debt load today + 10x gross income is a good starting point for figuring your coverage amount. Usually you'll buy more than that to account for inflation and the 6 month vacation to Hawaii your widow will need after you commit suicide with 4 rounds to the back of the head lol. Disclaimer: I'm an investment adviser who took over my dad's life insurance agency last year after he died. I knew you were an advisor when you mentioned a LIRP 50mil death bene eh? They are few and far between, but they do exist. Think majority shareholder of family farm corp that grew to mega farm corp or someone who made bank and owns a ton of real estate. Wealthy on paper but usually somewhat illiquid and their estate plan can get messy. I know about 10 years ago my dad worked on a deal for Deutschebank that was loaning a guy $200 million to build fucking blimps. He had to coordinate with about 10 different carriers to place that monster as no single company could handle the action and didn't want to pay the re-insurance premium. Wish I was operating on that level...someday, someday... |
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An ILIT also Spendthrift provisions on death benefit pay out also Quoted:
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I calculated a living "wage" that my wife could live on and support the kids until she was able to go back to work. Add that value to the mortgage. Done. ETA: Be honest. Do you think your wife would eventually move on and find someone else at some point? Then you don't need to be setting up a lavish savings account for her next man's boat/condo/camper. This is money to get her through a tough time, not the rest of her life. There are ways to fix that from happening Control from the grave trust. You can stipulate anything you want. Particularly that your wife can't use policy proceeds to enrich someone else if that's your choice. An ILIT also Spendthrift provisions on death benefit pay out also True an ILIT will accomplish this, it's better suited for eliminating incidents of ownership and keeping the max exemption from federal estate taxes available IMHO |
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They are few and far between, but they do exist. Think majority shareholder of family farm corp that grew to mega farm corp or someone who made bank and owns a ton of real estate. Wealthy on paper but usually somewhat illiquid and their estate plan can get messy. I know about 10 years ago my dad worked on a deal for Deutschebank that was loaning a guy $200 million to build fucking blimps. He had to coordinate with about 10 different carriers to place that monster as no single company could handle the action and didn't want to pay the re-insurance premium. Quoted:
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Permanent insurance vs term insurance, what the conundrum. Term seems like the clear winner to me. Am I missing something?[/] I Not saying that, I'm just saying that's one of the big decisions when buying insurance Term insurance is the cheapest way to buy life insurance. Pick your face amount and years of coverage, pay your premiums and if you die within the the coverage period your beneficiaries get paid. That's it. At the end of the coverage period there is nothing coming back to you. Many contracts have a conversion option that allows you to convert your term policy to a permanent contract without going through underwriting. The premium is based on your attained age (at the time of conversion) and your rate class from the original issuance. Term insurance makes sense in many cases, it also has its drawbacks. Ultimately it's hard to argue with low cost if you're trying to meet a simple death benefit need only. Permanent insurance is more expensive than term, however there are potential advantages such as being able to add a long term care rider or return of premium rider, you can use the cash value as supplemental retirement income...these contracts are typically utilized in more advanced planning scenarios such as estate planning or deferred comp programs. Example: Premium Financing. Say a guy needs $50,000,000.00 worth of coverage - fuck that premium. Like $300k year if he's healthy. He can borrow the premium to have a paid up contract and use the cash value to invest in an S&P Index fund, assume 6% annual return, 15 years later he's sitting on several million +/- cash value, borrows enough from the policy to pay off the loan, say $1.5mm, now he's got maybe $3mm cash value that he can take loans against, never pay back (cough, tax free money, cough), face amount is reduced by outstanding loan balance. He croaks and family gets whatever death benefit is leftover. This is an extreme example and probably not the best as I omitted a number of detail factors but the fact is that permanent insurance has its place. But that doesn't mean it's the best for you. My advice is run for life from an agent that is ONLY talking about permanent coverage. A good agent is more of an adviser and confidant and will show you everything from every A rated carrier approved to do business in your state. In other words: term = cheap coverage for death benefit only. Permanent = more expensive but with additional features and benefits. IE do you want the contractors package Ford F-150 or the Raptor? Me personally: I have term insurance (about 75% of the face amount I have in force) and permanent insurance. There's an element of speculation involved in the sense that if you're thinking you just want coverage until the house is paid off or kids are out of the house - very few are happy to let it go when the day comes and want to keep something in force. But maybe they now have cancer or heart disease and are no longer insurable, it's then a coulda woulda shoulda scenario. For my purposes I make use of my permanent policy as way to stash non-qualified money and earn 5.5% and as a sort of insurance for my insurance. Debt load today + 10x gross income is a good starting point for figuring your coverage amount. Usually you'll buy more than that to account for inflation and the 6 month vacation to Hawaii your widow will need after you commit suicide with 4 rounds to the back of the head lol. Disclaimer: I'm an investment adviser who took over my dad's life insurance agency last year after he died. I knew you were an advisor when you mentioned a LIRP 50mil death bene eh? They are few and far between, but they do exist. Think majority shareholder of family farm corp that grew to mega farm corp or someone who made bank and owns a ton of real estate. Wealthy on paper but usually somewhat illiquid and their estate plan can get messy. I know about 10 years ago my dad worked on a deal for Deutschebank that was loaning a guy $200 million to build fucking blimps. He had to coordinate with about 10 different carriers to place that monster as no single company could handle the action and didn't want to pay the re-insurance premium. nice, yeah I don't see a single carrier underwriting all that in one policy. Talk about a hit to the reserves if they had to pay out. |
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True an ILIT will accomplish this, it's better suited for eliminating incidents of ownership and keeping the max exemption from federal estate taxes available IMHO Quoted:
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I calculated a living "wage" that my wife could live on and support the kids until she was able to go back to work. Add that value to the mortgage. Done. ETA: Be honest. Do you think your wife would eventually move on and find someone else at some point? Then you don't need to be setting up a lavish savings account for her next man's boat/condo/camper. This is money to get her through a tough time, not the rest of her life. There are ways to fix that from happening Control from the grave trust. You can stipulate anything you want. Particularly that your wife can't use policy proceeds to enrich someone else if that's your choice. An ILIT also Spendthrift provisions on death benefit pay out also True an ILIT will accomplish this, it's better suited for eliminating incidents of ownership and keeping the max exemption from federal estate taxes available IMHO True, imagine if the estate exemption stayed at 1mil, there would definitely have been an uptick in them. |
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An ILIT also Spendthrift provisions on death benefit pay out also True an ILIT will accomplish this, it's better suited for eliminating incidents of ownership and keeping the max exemption from federal estate taxes available IMHO True, imagine if the estate exemption stayed at 1mil, there would definitely have been an uptick in them. Your insurance nerd is quite strong. |
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For a small ins co, that may be more than their reserves Quoted:
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nice, yeah I don't see a single carrier underwriting all that in one policy. Talk about a hit to the reserves if they had to pay out. Oh they would have been creamed! Could you imagine? For a small ins co, that may be more than their reserves They buy re-insurance but yes, it was your major players only in that game. I know it did get placed and ended up being somewhat smaller face amount but it was split 5 ways with other agents who did a lot of leg work and, sadly, it's no longer even in force as that was one of the files I looked at first when I was getting up to speed on my dad's business. He still had a FAT commission and ate very well that year 
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An ILIT also Spendthrift provisions on death benefit pay out also True an ILIT will accomplish this, it's better suited for eliminating incidents of ownership and keeping the max exemption from federal estate taxes available IMHO True, imagine if the estate exemption stayed at 1mil, there would definitely have been an uptick in them. Your insurance nerd is quite strong. I know a little bit. 
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Are there any companies that offer term life without going through a physical/blood test etc?? I'd check first to see if your employer has a group plan, usually those are guaranteed issue w/o underwriting and pretty cheap - but like anything they can have drawbacks such as caps on coverage or not portable. Then there's your TV ad age 55+ guaranteed issue policies but they are usually capped around $25k if I'm not mistaken. |
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They buy re-insurance but yes, it was your major players only in that game. I know it did get placed and ended up being somewhat smaller face amount but it was split 5 ways with other agents who did a lot of leg work and, sadly, it's no longer even in force as that was one of the files I looked at first when I was getting up to speed on my dad's business. He still had a FAT commission and ate very well that year
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nice, yeah I don't see a single carrier underwriting all that in one policy. Talk about a hit to the reserves if they had to pay out. Oh they would have been creamed! Could you imagine? For a small ins co, that may be more than their reserves They buy re-insurance but yes, it was your major players only in that game. I know it did get placed and ended up being somewhat smaller face amount but it was split 5 ways with other agents who did a lot of leg work and, sadly, it's no longer even in force as that was one of the files I looked at first when I was getting up to speed on my dad's business. He still had a FAT commission and ate very well that year
Nice I bet his check was huge if his commission was annualized. |
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Nice I bet his check was huge if his commission was annualized. It was premium finance case so think annualized target premium + excess + a piece of the loan! That single case paid him more than I've ever grossed in a single year. He had a good year that month
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Do what my Uncle said. His life Ins was payable to his wife if an only if she did not shack up with another man within one year after his death.
When asked how would he know if she did or not, he said because my will requires that my good eye has to be placed at the end of the bed so he could keep an eye on her. My former brother went a different direction. He said the hell with life Ins as his wife was attractive and would hook up with another guy quickly. He said why should the new guy that is tapping his widow freeload or benefit off of his death. |
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Gettingthere nailed it.
If you want a straight death benefit, term all the way. The premium dollars are smaller. It's not cheaper - it's throwing money at a policy that you won't get back. Your beneficiary may, but you're just pissing away your dollars at a life policy. Unless you take the dollars that you DON'T spend on life insurance and invest it, the idea of term and invest the rest is pointless. If you want to net nothing and spend nothing, purchase a return of premium policy. A higher premium, but less cost to you. The premium is returned to you if you don't die at the end of the policy, so you get a check cut to you for the cost of the insurance. After 30 years for a big policy, you could get a check big enough to pay off your mortgage depending on what you're looking at. If you want to get paid, buy yourself a whole life policy. They're an investment vehicle - a savings account on steroids so to speak, with a death benefit. For instance. At my attained age (when I purchased the policy) of 23, and my rating of super preferred, it's $300/mo. for 350k worth of whole life. If it grows as it should with illustrated values, by age 100, I'll have 980k sitting in the policy. I don't expect that, but worst case scenario, I'll have 350k and have paid around 270k into it. If I die, that is passed on as a death benefit tax free. If I want to stop paying it at 65, the dividends issued from the company should pay the entire yearly premium. Growth is tax deferred. I can borrow from it and pay myself the interest. It earns interest, accrues cash value, earns dividends, and provides a death benefit. The biggest thing everyone should know about life insurance; buy it early in life, the premiums are low as hell. You may not be able to get insurance later in life after an illness, which should be the biggest concern. |