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Life Insurance

Discussion in 'Stocks, Investments & Finances' started by GODZILLA, May 7, 2021.

  1. May 7, 2021 at 7:48 PM
    #1
    GODZILLA

    GODZILLA [OP] Hail to the King, Baby.

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    Greetings, Gurus.

    First off, Mods, if this is in the wrong place I would appreciate a heads up and a move. It seems to fit with personal finances in my mind, so here we are.

    To the point; I am really looking at getting life insurance coverage beyond what my employer provides. I have no experience with this kind of thing, and I would appreciate some guidance. It's all convoluted and confusing; even more than the wheel and tire options for our Tundras! :eek2:

    I'm not sure what to expect for cost beyond the basic "get a quote" things I've seen on a couple of sites, but I also realize those are tools to try and sell the insurance. I'm skeptical about what they show, as there is a huge variation in "estimates" provided by different companies.

    Do any of you have info based on experience? Do we have any people who work in insurance that can give unbiased guidance?

    Basics on me: I'm 36 (for now), male, no diagnosed or suspected health conditions, fat, have never smoked, have never drank.
    1. Can any of you recommend a company that is fair to work with, and helpful?
    2. What's considered a good price? I have no idea on this and it seems to vary wildly.
    3. What information do I need from any intended beneficiaries? SSN? Addresses?
    4. Any companies I should avoid?
    5. General advice? If I were your kid and you were trying to teach me, what would you convey?

    My head is kinda spinning. :boom:
     
    jeremyd, Kimosabe and MTRock like this.
  2. May 7, 2021 at 8:12 PM
    #2
    GaTundra79

    GaTundra79 New Member

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    Term life insurance is cheap and simple. Google "shop term life plans" and you'll find websites where you can compare prices from multiple companies - you'll just put in your info, and they'll usually send someone to your house to get your vitals and some bloodwork.
     
  3. May 7, 2021 at 8:14 PM
    #3
    RainMan_PNW

    RainMan_PNW SSEM #82 RGBA #4 “That Guy” Vendor

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    It may not be the “right” option, but this is what my wife and I have done:

    We set up retirement planning through a local Edward Jones rep. The one we have now is the son of the one we started with. He’s my age, he handles the financial planning for my wife’s entire extended family, and we’ve gotten to be friends over the years as well. In other words, we trust his advice and help.

    We meet with him once a year to review our planning, look at what we’ve got coming up, juggle some things to stuff more money into Roth IRAs, review how my 401(k) is set up (its through my employer; he has access to the basic information, but is not legally allowed to provide “advice”).

    Part of the bigger stack of things we look at are life insurance policies, tax funding, estate planning, and pretty much everything else associated with making sure we’re ready for the unexpected and the expected. We also do a monthly draw into the Roth that they manage, and the money we had been putting into that since ‘99 is what paid for us to remodel our kitchen last year.

    Obviously he’s got some affiliation with the products he recommends to us, but he also has just good layman’s information on what the different options are, what the costs are, and the benefits and detriments for different types of insurance are. He’s also helped us find a good lawyer for our wills, and an accountant to help with our taxes (since things got a little strange with the payments we took out of Roth this year).

    We set the first policy up when I was 22, and it was a locked in rate for 20 years. As I got close to 40, we went to a different company for same benefits but a better price than the first offered for my age range and another 20-year lock on the new rate (you want to renew before your current one expires I guess). As I near retirement, we’ll be looking at new options…but also should have all of our debt gone and be sitting where my retirement fund is bigger than any life insurance policy I would want to pay for.

    We’ve been realistic about the amount - enough to pay off 100% of our debt, cover funeral expenses (cremate me and scatter me in the mountains - no need for a head stone either), and to set my wife up with enough to live off of for a year or two while she gets back on her feet. No need for million dollar coverage or anything like that.

    All that said, I’d have to look up what we actually pay per month…
     
    Skolberg, 1lowlife and CCLJ03 like this.
  4. May 7, 2021 at 8:19 PM
    #4
    MTRock

    MTRock 1889

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    North Western Mutual.... By Term Life and invest the rest.
     
  5. May 7, 2021 at 8:19 PM
    #5
    PNW_Husky

    PNW_Husky New Member

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    FWIW, I was in a similar situation a few years ago when we decided to have kids. We wanted the security that my wife could cover the mortgage and the kids education if something were to happen to me. I ended up getting a 30year life term policy, 1.5M coverage for 1k/yr. I was 33 at the time that we bought the policy.

    My wife got the same policy, but she is 5 years younger than me. Hers costs about $700/yr.
     
  6. May 7, 2021 at 8:24 PM
    #6
    CCLJ03

    CCLJ03 Tundra forever

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    As an Edward Jones advisor, this post makes me happy as a clam. I’m happy for you and your family that your advisor is able to be helpful in so many ways.
     
  7. May 7, 2021 at 8:38 PM
    #7
    RainMan_PNW

    RainMan_PNW SSEM #82 RGBA #4 “That Guy” Vendor

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    So, Term life is what I’ve got too.

    For $500k, I pay $32/month starting in 2018 when I was 42 yrs old. Healthy, haven’t smoked since 1997, mild drinker (3-4 drinks per week), and carrying about 20lbs more than I should for my height/build.

    My wife’s policy we started in 2002 - not sure if it was a 30-year or we just renewed it because her benefit amount is lower. $150k benefits is $15/month - she’s 6-1/2 yrs older than me, small, fit, and super healthy.
     
    1lowlife, MTRock and GODZILLA[OP] like this.
  8. May 7, 2021 at 8:45 PM
    #8
    shackleford rusty

    shackleford rusty New Member

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    TEXAS!
    i will share the best advice i received when we purchased life insurance for ME.

    1. choose TERM life

    2. there's a fine balance between taking care of her / loved ones after you're expired... vs. motivating her / loved ones to "expedite" the process...

    3. goal is to have her / loved ones take care of final expenses and continue SIMILAR lifestyle

    4. don't allow her / loved ones get FILTHY rich off your ass once you're under the dirt... again with the "motivating"...
     
  9. May 7, 2021 at 8:46 PM
    #9
    RainMan_PNW

    RainMan_PNW SSEM #82 RGBA #4 “That Guy” Vendor

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    :thumbsup:
    Yeah. Except he keeps telling us to spend money!

    I actually have to thank him for helping us juggle things to make it sensible to buy my new truck.
     
    GODZILLA[OP] likes this.
  10. May 7, 2021 at 8:50 PM
    #10
    GODZILLA

    GODZILLA [OP] Hail to the King, Baby.

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    Motivation to expedite the process is the least of my concerns. This is part of why I asked what I did about what info I need to name a beneficiary. I don't have a "her", and if possible I would name my beneficiary without their knowledge. I'd aim for improving her standard of living and covering the education expenses of her children.

    Even if I have to get personal info from her to do it, I am not concerned with motivating her to off me. She's not dumb enough to think she'd get away with it, for one, and for two, it wouldn't bother me in the slightest if she did.
     
    15whtrd, NWPirate and RainMan_PNW like this.
  11. May 7, 2021 at 8:57 PM
    #11
    Pmac

    Pmac New Member

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    34 years in the business, retired now. Happy to visit with you via PM or phone.

    I’ll give you two things to think about. Then if you like, with 8-10 questions and a few follow ups, I can help you get pretty close to a personalized answer to your query.

    First, if you love or are loved, you may have a need for life insurance. Even if neither applies, you just might want some anyway and that’s just fine.

    Second, if you do have a need or want for life insurance look to permanent life insurance for permanent needs and temporary life insurance for temporary needs. You may decide you need more than you can afford or could afford more than you need, either is fine and workable.

    I’d ignore anyone that says you need to do this or that. I’d listen to those that educate you, make you think, ask about your needs & desires and let you craft a plan or lack there of. Be very wary of blanket advice like buy term and invest the difference, x10 for a permanent need. If you understand all the issues, it can be a fine strategy, most don’t. The only thing that really matters is you understand the risks, are comfortable with what you choose to cover, and most importantly what you choose not to cover.

    My two cents.
     
  12. May 7, 2021 at 8:57 PM
    #12
    RainMan_PNW

    RainMan_PNW SSEM #82 RGBA #4 “That Guy” Vendor

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    Typically SSN is necessary on any true beneficiary forms I think. Seems like I have to put that on all my retirement stuff anyway
     
    GODZILLA[OP] likes this.
  13. May 7, 2021 at 9:06 PM
    #13
    eick

    eick New Member

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    Term life, look for enough to pay off mortgage and provide X amount of years of replacement income.

    at your age and health record you should be paying like 35-45 a month for 500k for a 30 year

    also you can set up a trust or contingent trust as a beneficiary, if you already have insurance for home and auto just reach out to your broker and ask for options
     
    1lowlife likes this.
  14. May 7, 2021 at 9:18 PM
    #14
    GODZILLA

    GODZILLA [OP] Hail to the King, Baby.

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    Yeah, that was kind of what I expected. So no surprise windfall upon my demise... Once I get the details planned and worked out I will just have to tell her what I'm doing and hope I don't get some kind of lecture and resistance about it.
     
  15. May 7, 2021 at 9:21 PM
    #15
    Outbound

    Outbound SSEM #2.5, Token AmeriCanadian

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    This reminds me, I need to review ours again. All I remember is that The Woman is worth a pile of money if our house burns down with her in it. She was quick to point out however, that the same is true with me...
     
  16. May 7, 2021 at 9:22 PM
    #16
    Green Thunder

    Green Thunder Smooth in the Cruise

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    So… you are not married or with a long term partner. Nor do you have kids. Right? If that’s true, I’d say you don’t need life insurance beyond what your employer offers.

    If you want to help with education, set up a 529 investment account for each kid. We started one for my kids when they were born and with some contributions from the grandparents they will have enough money to cover four years of college. The best part is you don’t have to die to help the kids!
     
    Skolberg likes this.
  17. May 7, 2021 at 9:30 PM
    #17
    GODZILLA

    GODZILLA [OP] Hail to the King, Baby.

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    Correct. Terminally single and sans offspring.

    The employer's plan will cover my debts, burial, and leave a small amount (<$10,000) to my younger brother. I understand I do not "need" more than this. Though, as stated, in addition to covering the kids' education I would like to improve things for her if I am not around to help anymore.
     
    Green Thunder[QUOTED] likes this.
  18. May 7, 2021 at 9:54 PM
    #18
    smokey0810

    smokey0810 New Member

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    Got our policies thru Allstate when my daughter was born. She just turned 12, and we revisited the policies and changed a couple things since we added two other kids since then. Might also want to consider talking with your home/auto insurance provider. I know I'm a little late to the conversation here. Dave Ramsey's website also has some good information on life insurance policies, and how to go about finding a provider that won't make you insurance poor. Good luck on your journey! https://www.ramseysolutions.com/insurance/term-life-insurance
     
    ColoradoTJ likes this.
  19. May 7, 2021 at 10:23 PM
    #19
    ColoradoTJ

    ColoradoTJ Certified tow LEO Staff Member

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    Good topic Adam.

    This is what we did/do:

    - First off, we had a good living will, power of attorney, medical power of attorney all set up. This really keeps the state out of your business.
    Depending on who owns the house, quick deed the other person. This helps the family not lose everything fighting in court. I was a pigheaded moron about this for many years. The house was purchased under my name only since I went with a VA mortgage. Had I passed, the house wouldn’t automatically just go to the wife. Our lawyer looked at me and said “Would you pay 20-30k dollars for this Living Will? That’s what your wife will have to pay to fight the state of CO from taking over the estate.” I quick deeded my wife to the house ASAP.

    - We both work for the same company, so our benefits are the same. 1.5 times annual base pay for accidental death benefit. Our company pays this portion. On top of this we can add an additional amount to 250k, which we do. We also select additional life insurance through a third party company for 250k each. This is like 8.00 a month. So we have 500k in paid life insurance and the company gives us between 145-185k for the 1.5x annual salary depending on who passes.

    Our PERA retirement also goes to whomever the spouse is that’s living. At this point it’s pretty significant since I’m 3 years from retirement and the wife is 6-8 years out depending on how long she wants to put up with BS.

    Then 401k, 457, and Roth IRAs come into play.

    For the kids, we did 529’s and really regret doing that. We should have just did other investments for college. The way things are set up, my kids will never be eligible for any financial aid or whatever due to our incomes. There’s ways around this....
     
    1lowlife and GODZILLA[OP] like this.
  20. May 7, 2021 at 11:59 PM
    #20
    alb1k

    alb1k Always Coming From Take Me Down

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    Written like a salesman. Shop 20 year term life at your age.
     
  21. May 8, 2021 at 4:04 AM
    #21
    omgboost

    omgboost The Accountant

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    I am 34, have a mortgage, 2 elementary school age children. I have maxed out my 401k and Roth IRA each year. I put in monthly to my brokerage account. I have supplemental life insurance from my employer which gives 5x salary. I bought 20 year term life and a whole life policy.

    I debated against buying life insurance for a long time since you can get better returns on the market. However if you don't feel comfortable investing in the market, whole life insurance may be an option. I purchased my policies through New York Life.
     
  22. May 8, 2021 at 5:47 AM
    #22
    eick

    eick New Member

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    Gotta second and third having all your paperwork in order like wills etc.

    Go see an estate attorney, you can get the whole kit and caboodle done from A to Z.
     
  23. May 8, 2021 at 8:36 AM
    #23
    Pmac

    Pmac New Member

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    More like a consultant, which is what I was. You simply don’t know enough about his needs and wants to give that recommendation. Common error.
     
    ZappBrannigan, WBW and alb1k[QUOTED] like this.
  24. Jun 3, 2021 at 1:50 PM
    #24
    Chris_wde

    Chris_wde New Member

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    I've been a financial advisor for 20 years. You are asking the right questions and I would be happy to assist by addressing your specific needs. Send me a PM anytime.
     
  25. Jun 3, 2021 at 2:29 PM
    #25
    TexAggie

    TexAggie New Member

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    I stick with 10x your income in term life. Any decent mutual fund will provide on average a 10% annual return, this allows your beneficiary to invest the payout and continue receiving your income without touching the principal.
     
  26. Jun 3, 2021 at 2:31 PM
    #26
    Kimosabe

    Kimosabe Slacker

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    This is a great topic and you can go different ways depending on your situation. I agree with a post above, that being educated and making the decision based on your needs is the way to go. Plenty of people on here offering to help also. Take them up on it.
     
  27. Jun 3, 2021 at 3:10 PM
    #27
    MadMaxCanon

    MadMaxCanon New Member

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    Too many, but not enough....
    A case can be made either way about life insurance, amount, type, how long, etc. What very few intelligent people would argue with is setting up a family trust. I am 36, married with 2 small kids and considering having another and 2 houses. With a trust, you can rest easy that the government is not going to eat them alive after you die with taxes, red tape or taking parts of your estate as a fee for the legal battles they would face. It also ensures the government cannot tax your family on anything they get after you are gone. It can also be setup as a "living document" of sorts, so that it applies to what you currently have, and more importantly, what you WILL have at the time of your passing. Its not expensive to setup at all, relative to how much it will help your family.
     
  28. Jun 3, 2021 at 7:23 PM
    #28
    jeremyd

    jeremyd 2014 Crewmax SR5

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    I smoked for 20 years and drank like a fish when I was in the Navy. No wonder why I'm paying 180 bucks a month for 150K term life insurance! Someone help me out here! Lol
     
  29. Sep 21, 2021 at 12:28 PM
    #29
    Shamrock92

    Shamrock92 New Member

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    Good info in this thread - glad I read up a little.

    I just bought a 30 year term for 250k - 38 dollars a month (of anything happens - figured that will take care of the mortgage for Mrs) - then added a 100k whole life policy for 1600 a year.

    Kind of surprised I was able to secure decent prices given my health - but no questions asked - offered by employers plan as an add on - so I’m sure that is how I managed to get it.

    The thing about whole life though - the first 3-5 years - you are paying the “set up cost” - commission/policy acquisition cost and processing - so building absolutely no value. It takes 10 or so years until you really see any monetary value. Great if your in your 20s - but sucks if your in your 40s or worse.

    Term helps fill that gap - I got 20 more years until I can “retire” per the Government. So 20 year term in case something happens between now and then - and in 20 years when the law of averages catches up to me - I will have no mortgage and a monthly check available to my wife - so who really cares….no one is financially burdened if I’m not around.
     
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