Life Insurance? Change my Mind. 2020!
Started by quickpic007
If you want your family to not have money should you die, that's your business.
Otherwise, choose a term life plan.
Otherwise, choose a term life plan.
Term. All others will line the pocket of whatever financial planner “friend” that slid into your DMs.
If kids, hell yes. If attempting to conceive, apply now. Between the medical exam and blood test, applying after conception might be too late.
Also, apply while you’re healthy before you gain weight, pick up a chronic condition, or some other hallmark of aging.
If no dependents, don’t bother...your savings should be sufficient to bury you.
Remember, don’t forget aging parents even if you are childless. If you were planning on helping take care of them, consider a policy that funds to a trust upon death with a corporate trustee to administer it. Don’t trust family, lol.
Basically, don’t under estimate your impact on other people. Insure appropriately.
If kids, hell yes. If attempting to conceive, apply now. Between the medical exam and blood test, applying after conception might be too late.
Also, apply while you’re healthy before you gain weight, pick up a chronic condition, or some other hallmark of aging.
If no dependents, don’t bother...your savings should be sufficient to bury you.
Remember, don’t forget aging parents even if you are childless. If you were planning on helping take care of them, consider a policy that funds to a trust upon death with a corporate trustee to administer it. Don’t trust family, lol.
Basically, don’t under estimate your impact on other people. Insure appropriately.
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It sounds like you don't have kids. Imagine you have a baby and a mortgage. If you die today, will your wife and child be able to keep their same lifestyle for the next 18+ years? If your bankroll can support that then you must have millions already.
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I think it’s selfish not to get a good term life policy if you have children counting on your income or care and you are insurable.
If you have saved enough that this isn’t an issue, you’re just self insured. That’s fine too.
If you have saved enough that this isn’t an issue, you’re just self insured. That’s fine too.
Single, with no plans for ever getting married or having children? You don't need it.
Kids (now or planned for the future)? You need it. Don't be the fool who forces their widow/widower to plead for financial help on gofundme after your untimely demise.
Get a good term plan - they are ridiculously cheap for the coverage you get. I'm regretting not purchasing a 30 year plan when I had the chance- I'm now closer to the end of my 20 year policy than the start of it, and will have to try to figure out how to bridge the gap between the end of the policy and my planned retirement (maybe not retirement, but no more of this line of work) three years later.
Kids (now or planned for the future)? You need it. Don't be the fool who forces their widow/widower to plead for financial help on gofundme after your untimely demise.
Get a good term plan - they are ridiculously cheap for the coverage you get. I'm regretting not purchasing a 30 year plan when I had the chance- I'm now closer to the end of my 20 year policy than the start of it, and will have to try to figure out how to bridge the gap between the end of the policy and my planned retirement (maybe not retirement, but no more of this line of work) three years later.
I always cringe when I see this. Someone on my neighborhood page set up a GoFundMe for $3000 when their furnace crapped out in the middle of winter. Really, they don't have $3000 emergency savings? Gofundme keeps a large percentage for profit don't they? You know these people have the latest iPhone and $300 earbuds too.
Best earbud money can buy under $100. Competes directly with $150-200 earbud for 1/4 of the price. Better than overpriced airpod pro.
Amazon product ASIN B07YBYN3P9
I have term through State Farm. Think I'm paying around $40 something a month for $800,000 (got the policy before I was ever a pharmacist). I plan on keeping it until I'm sure we are completely financially sound (don't want to screw my family over if I die). But I guess I'm worth more alive than dead at this point.
I just bought these and started using them last weekend, they are actually quite good for the price. Great battery, good comfort, decent sound and noise cancelation and the charging works quite well. Funny that you posted this.
As for insurance, I have my company plan plus a term life that provides enough to pay off all our debts plus some extra to keep the family on track. As I say, they will be comfortable, but not so much that "accidents" come into the picture.
term life at a 20 year fix ($1million) + SBP (Survival Benefit Plan). SBP is $89 a month for 30 years (capped out) and gives spouse and kids half my monthly pension for life (with inflation it may be somewhere between 2-3k). I chose the term life rate amount for mostly mortgage coverage and any emergency costs that I hope never happens. Who knows, maybe one day I'll owe the mafia $350k up front leading me to fake my own death and thus move overseas with my family and live with the in-laws in French Polynesia.
You never know.
You never know.
you will find varying opinions on this. I am 36 yo married with 2 kids and the only life insurance i have is 1.5x salary from employer (180k). That on top of the 1.1M net worth and the Social Security a widowed wife of two young kids would receive until they are age 18 is more than enuf in my (and my spouses) eyes.
Nice pick up. No earbud at $40 price point has EQ app. This one has it. Bass is tight, super balance sound.
They don't have active noise cancelling. Just passive, but it's still not bad if you turn up the volume slightly.
I got these for $50 and they're pretty good. Not an audiophile or anything so I can't tell the difference between these and expensive ones.
Amazon product ASIN B07SJR6HL3
Those Apple ones have a battery lifespan of 1-2 years. It costs almost as much to replace the batteries as it does to buy new earbuds. So Apple users will be spending $300 every 1-2 years on these things. Good for shareholders.
As for life insurance, we are mid 30s with one kid and got 30 year term, one million for about $70/month per person. That would pay for the mortgage, healthcare, and childcare in case one of us dies.
Y'all boujee. I'm a Mpow man.
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I hope those returns got disinfected.
I've got a $1M annual renewable term that I haven't canceled since I was a medical student for like $300/yr plus another $2M 20 year level. I paid a bit of a premium cause I bought it from my dad. . (oh well). I get 1 year salary from work too.
Life insurance allows my family to not make drastic changes if I die, (not push my wife to get married, jump into a career while mourning They would probably move but they wouldn't have to.) Lots cheaper than disability insurance. (you should have both).
Life insurance isn't a good investment vehicle, but I'm willing to pay an insurance company money that my wife and two kids aren't left in a huge lurch if I kick it.
PS: I got some helm earbuds b/c they were on sale. . they are ok, but not nearly as good as my Bose 35ii headphones I left on an airplane.
Life insurance allows my family to not make drastic changes if I die, (not push my wife to get married, jump into a career while mourning They would probably move but they wouldn't have to.) Lots cheaper than disability insurance. (you should have both).
Life insurance isn't a good investment vehicle, but I'm willing to pay an insurance company money that my wife and two kids aren't left in a huge lurch if I kick it.
PS: I got some helm earbuds b/c they were on sale. . they are ok, but not nearly as good as my Bose 35ii headphones I left on an airplane.
Bose can't touch Sony 1000XM3 ANC :-D Almost all of these earbuds can't reproduce the same soundstage as regular headset. It's not as airy.
After playing with EQ, Sony definitely wins on almost every category that counts hands down. XM4 is coming out in 2-3 months too.
I have the XM3, they’re much better than Bose. I can’t imagine how much better the XM4 will be...I’m probably keeping these until they fall apart.
Funny though, I was able to sell my used Bose QC2 headphones purchased in 2006 for like $45 on eBay.
You are NOT going to die at a young age. The odd of you dying at a young age is insignificant.
Only buy life insurance if you are the sole breadwinner in the family AND if you have kids. If you don’t have kids, your wife is just going to spend your death money on her new husband. He is going to stay home, relax, eat bon bons and live a good life at your expense.
Put the money in the S&P 500. You will thank me when you are 65.
Only buy life insurance if you are the sole breadwinner in the family AND if you have kids. If you don’t have kids, your wife is just going to spend your death money on her new husband. He is going to stay home, relax, eat bon bons and live a good life at your expense.
Put the money in the S&P 500. You will thank me when you are 65.
Spoken like someone without kids.
I know plenty of people who lost their parents at a young age. It's not as uncommon as you think.
That is why I only recommend buying it if you have kids and breadwinner in family.
Lots of dual income families now. It doesn't matter if you're the breadwinner or not. Losing one working parent would be devastating not just for the loss income but because of the new childcare expenses.
That'll cover childcare for about a year, then what? Your widow will still have to sell the house.
This is like when single people give relationship advice, it's best if they say nothing.
I doubt any parent will take advice about their family's well-being from a single person though. If you have kids you'll understand.
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It is like playing the odds. I don’t think it is worth it since the odd is very small. Besides, I already have a small fortune. They can live on that for many years.
We've missed you BMB, you are always right and everyone else is always wrong.
I used to think like you when I was single, but when you have kids then priorities change. It's not about you anymore. You don't look at life the same way.
No one is right or wrong in this case. It is more about paying insurance to have a peace of mind.
There is a reason why commission from selling life insurance is so high. The vast majority of people would not benefit from it.
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Yup, I am glad my father had life insurance. Not sure what my mom would have done without it.
The same can be said about any insurance. Health, dental, home, auto. Odds are most people will not benefit from it.
The big difference is your social security already have life insurance. You can go to their website and look it up. My child and spouse would get $2200/month each. That is a total of $4400/month or $52,800 per year. That is assuming my spouse does not work. You mean to tell me my family can’t survive on $52 k a year, not including all the assets they will inherit from me?
didn't have any (other than 1.5x from work) until baby came.
I make 2x what wife makes.
I have 750k she has 250k.
Way to cheap to not do it if you have a child to support.
And never go with whole life, term is such a better way,
I make 2x what wife makes.
I have 750k she has 250k.
Way to cheap to not do it if you have a child to support.
And never go with whole life, term is such a better way,
Do I plan on dying anytime soon? No
Do I have insurance? Yes
Who cares if they never have to use it. That's chump change anyways.
Do I have insurance? Yes
Who cares if they never have to use it. That's chump change anyways.
I love how insurance companies always play on people emotions.
“If you don’t buy life insurance, then you don’t care about your family and they will be forced to live in destitute.”
If you are paying $80/month, that is almost $20 k over 20 years. That is quite expensive for a peace of mind. Imagine if you had put that money in the S&P 500. That amount could easily triple to $60 k.
That is why insurance company is such a cash cow. They use your monthly premium to invest and make more money.
“If you don’t buy life insurance, then you don’t care about your family and they will be forced to live in destitute.”
If you are paying $80/month, that is almost $20 k over 20 years. That is quite expensive for a peace of mind. Imagine if you had put that money in the S&P 500. That amount could easily triple to $60 k.
That is why insurance company is such a cash cow. They use your monthly premium to invest and make more money.
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20k over 20 years to insure your family has some provision in case of your death? What a ripoff!
No wait, that’s totally reasonable. And if you die early think of all the money you saved in premiums! No wait, that doesn’t sound right either.
No wait, that’s totally reasonable. And if you die early think of all the money you saved in premiums! No wait, that doesn’t sound right either.
What is the odd of you dying early? Have you looked it up?
If that is your mentality, then why not buy insurance for your iPhone? Pets? Boatload of insurance you can buy. You will be paying thousands in insurance per month. This is why insurance companies are making so much money. They play on people’s insecurity and fear.
What’s the impact of losing a phone?
Again what would my mom have done without my dads insurance? I am glad he didn’t listen to your advice.
Of course my advice is for the general population, not specific cases. Some people will benefit while the vast majority won’t.
If you take away deaths from:
1) car accident (already have auto insurance),
2) accident at home (already have home insurance), 3) accident at work (your employer already have it)
The odd of you dying young is very, very small especially for an educated person. Even if you do die young, you already have life insurance from your social security and probably from your employers too (limited). You are good to go.
Agree. Once you have around 1-2M+ liquid assets, you probably don't need too much insurance to get by (just withdraw 4% to get that basic income level) and it's still nice to have a paid off house for your kids in case you die tomorrow. It's hard for a single parent to pay 3k/mo in mortgage and support kids on top of it. We don't have 300-600k MD/software salary. Your spouse probably don't make that much anyway. Cheap ins for 30 yrs til kids can make their own money. In the grand scheme of things, you probably replace your car 3-4 times during that time and pay 35k each time. Peace of mind.
I have kids and I know my risk vs benefit analysis.
Don’t forget to also get disability insurance. How about home appliance insurance? You might need that too!
The fact that you think your kid and wife are going to live in destitute if you died is already factually wrong.
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Lol, isn’t that the point of insurance, that most people don’t use it? Otherwise it wouldn’t work.
I spend like $1400/yr for a $2M 30yr policy, I will likely cancel at year 20 depending on my net worth at the time, but I wanted flexibility. Actually, it’s $1M+$1M with two different companies for security/diversification/state guaranty reasons, but I digress.
I recently bought another 750k/15 year policy for another $408/yr.
$1808/yr isn’t that much money, sorry if you think that way. I spend way more on extra stupid stuff. I’m already at goal with savings.
I’m still deeply debating my own LTD policy ($10,000/mo), but it’s super expensive on my own and my employer policy seems sufficient.
I spend like $1400/yr for a $2M 30yr policy, I will likely cancel at year 20 depending on my net worth at the time, but I wanted flexibility. Actually, it’s $1M+$1M with two different companies for security/diversification/state guaranty reasons, but I digress.
I recently bought another 750k/15 year policy for another $408/yr.
$1808/yr isn’t that much money, sorry if you think that way. I spend way more on extra stupid stuff. I’m already at goal with savings.
I’m still deeply debating my own LTD policy ($10,000/mo), but it’s super expensive on my own and my employer policy seems sufficient.
The trick is not going to the doctor and not getting anything documented before getting examined/rated...and waiting until after the contestability period ends.
Like, hold off on sky diving or other activities that raise your rate (smoking). Most guidelines are available online.
Like, hold off on sky diving or other activities that raise your rate (smoking). Most guidelines are available online.
What is your goal? If your goal is for your family to live pretty well then go ahead and buy it.
But if your goal is for them to live a decent life without you then you don’t need life insurance. Look up your social security death benefits. For me it is $2200 per child and $2200 for the spouse.
If you have one child, they would be getting $53 k a year. That is close to the median household income in the U.S ($59 k). If they get it for 15 years, that is close $800 k (unadjusted for cost of living). How is that living in poverty?
I don't think you understand how SS death benefits work. My SS death benefit as of 30 minutes ago for my family maxes out at just under 5k/month ($4889 exactly if it matters). That is for the kids only, my spouse is only eligible when they hit retirement age.
I'm a family physician, our median salary is around 200k/year at the moment as a specialty (I make more than that but not a huge amount more). That yearly figure has a biweekly post-tax paycheck being more than the SS benefit. So right off the bat we're talking a 50% reduction in income, minimum. The money saved from insurance/food/gas without me doesn't come close to making that up. Could my wife support the kids by herself? Of course, though she'd probably have to downsize the house which is fine if she wants to do that but I don't want her to have to. Plus this way she will have zero debt to worry about going forward.
Us professionals don't buy life insurance to keep our families from becoming destitute, we buy it so that they don't have to downgrade their standard of living at the same time they lose a parent/spouse. Trust me (and apparently @owlegrad can back me up on this), a parent dying when you're a kid sucks enough without suddenly having to worry about money.
I pay around $40/month for a $1 million, 30 year policy. That'll take care of the mortage, her student loans (mine would of course die with me), and set up a solid college fund for the kids with a decent bit leftover.
Not bad for $15k over 30 years. And if I never use it, $40 every month makes absolutely no difference in my quality of life.
I can self insure my phone. If I break one, I buy a new one. If I die, my wife loses on millions of dollars of future income. See the difference?
When my assets can replace my income, then I don’t need life insurance. Someday. . . .
