Comments on: Life Insurance: How Much Coverage do I Need, if Any?

By: Tony

Tony — Wed, 25 May 2011 19:44:16 +0000

I’m 25 and my wife is 24, we just signed up for ROP(Retrun of Premium) policies. I have a $500,00 policy, and she has a $250,000 policy.

By: Matt K

Matt K — Wed, 17 Nov 2010 00:07:03 +0000

It is absolutely untrue that you do not need life insurance as a retired person. I don’t know how you come to that conclusion.

Let me explain why you’re wrong…

Estate planning!!!

If you die and you have a spouse, did you know you lose the smaller of the social security benefits? Hmmmm lose of income, of by the way the surviving spouse has to deal with a huge loss income, inflation, and rising health care costs for the rest of his or her life…

Life insurance can pay for Long term care cost for the surviving spouse, in home care, and health care costs, the children or friends do not have to take out a second mortgage to pay for care…

One the biggest reasons to have some type of insurance as a retired person is protection from taxes…..

This was completely left out FROM the “advice” given in this post. Pay taxes with TAX FREE MONEY!!! These are very real taxes you need to be aware of 1. Estate taxes
2. IRD taxes, taxes on unspent qualified money 3. Inheritance tax 3. Death tax in some cases

Life insurance can help pay for taxes and keep that burden off of the recipients of the a old 401k, IRA, Roth IRA or any qualified money not spent. The recipients have to pay taxes on that money at THEIR tax rate!!! If they are named beneficiaries on those IRA’s they can do a stretch IRA.

If you want to create a legacy for your children or donate money…

What about final expenses…. Almost 15000 just to put someone in the ground…

What about legal fees to create a trust or pay a lawyer if they die… do you want to use their hard earned money to pay those fees, so the kids end up with nothing???

That just the surface……

By: Mark@LifeInsuranceQuotes.net

Mark@LifeInsuranceQuotes.net — Wed, 10 Nov 2010 09:49:09 +0000

Only buy life insurance if you need it.

1. Are getting married.
2. Buying a new house.
3. Having or just had children.
4. Don’t already have enough life savings in the bank/401k.
5. If possible, buy it through your employer.
6. Can pay the premiums every month – a majority of term policy holders stop paying in the first year.

By: Jimmy

Jimmy — Fri, 14 Aug 2009 16:50:40 +0000

i am 47 years old, recently bought a house in Juneau, Alaska. I work for the state as engineer and i have both medical and life insurance. Someone approached me to get another life insurance for my house. In case something happens to me, my relatives can sell or continue the payment of the house. Is it necessary?

By: Michael

Michael — Sun, 19 Apr 2009 03:18:21 +0000

anyone wants sound advice just ask i will leave another comment.

By: Tracy

Tracy — Sat, 07 Feb 2009 14:27:41 +0000

Do you have to have good credit in order to get approved for term life insurance? I am a 37 year old male, and I have a mortgage with four children and a wife. I have never had any type of life insurance. Should I consider getting life insurance?

By: ragnar3113

ragnar3113 — Sun, 25 Jan 2009 05:26:14 +0000

Now I have heard of this buy term and invest the difference concept before, before the market lost 36.2 percent of its value. So now I am wondering how those mutual funds are doing for you now? Recently I invest in a concept called SLIRP which over the next 18 years I pay in 55,000 and take out a cash value of 165,000 almost all of which is tax free. All while having coverage of approx. 250,000 in death coverage. However I mainly did it for the 165k in cash, which in order to get 165k out of my 401k I would have to have a value of 235,000 assuming a 30% tax rate which I am sure will increase by the time I retire since historically we are the lowest tax percentage in years.
Another idea which I have discovered is lets say you had 100,000 in the market and you lost only 30% this year that means you now have 70,000 left. You would need returns of 10% for 4 straight years just to get back where you started. Meanwhile I know the 5 percent return on my SLIRP wasnâ€™t sexy at least I am still up.

By: stephanie

stephanie — Sun, 23 Nov 2008 23:08:30 +0000

@ wingz:

Personally, I don’t believe in afterlife, and don’t care what happens to my body when I die – preferably it will be donated to science, so funeral expenses should be minimal. Anything my family decides to do in terms of funeral services or memorial services will be for their own sake, not mine, and I do not feel obligated to fund that (though my life insurance that is included in my benefits through my work will pay $15k – I would rather that money go to starting Roth IRAs for my 2 younger brothers, but that decision will be left up to them).

I also have excellent health insurance (I work on a college campus, so I have great benefits all-around), so I don’t think I need quite $100k saved up for medical emergencies. I am working on building up a substantial emergency fund, though, and I expect it to increase rapidly after I go to grad school.

And finally, if I am disabled and unable to take care of myself, I think I would rather die, thank you. Yes, I am that independent-minded, I do not want to take, take, take from anyone (my parents included) nor be dependent on someone else so that I can complete my day-to-day routine. And for the record, I do also have long-term disability insurance through my employer, also. It is included in my benefits package, I don’t pay extra for it. I still think I would rather die than have to depend on others, even if I can be collecting from my disability insurance.

I’m not saying that you don’t bring up valid points, but I personally 1. refuse to be dependent on others and 2. don’t feel obligated to pay for the decisions my family makes without taking my wishes into consideration.

By: andrew j

andrew j — Sun, 23 Nov 2008 13:23:15 +0000

A 25 year old vs. 30 year old buying a 30-year term life insurance means that the 25 year old will be quoted less premium than that of the 30 year old. At the end of the 30 year term, the 25 year old would be 55 and the 30 year old would be 60. The main key here is that both individuals should have made the appropriate investment plans (i.e. Mutual funds at 10% annual growth and complete debt elimination programs) within the 30 years so that by the time the policy is outlived, there is no more need for life insurance. The individuals have already reached financial independence. No more debt to pass on to family members. And all mutual funds/savings/investments the individual made would then be considered as the money to be passed down if the individual does die. When you’re young, you have high debt and you need life insurance in case you die. When you get older, youre debt is paid off, thus no need for life insurance. Buy term, and invest the difference.

By: Elzu Beth

Elzu Beth — Fri, 14 Nov 2008 06:34:14 +0000

I think nowadays every people need life insurance. You have describe very well which people need or which people don’t need but I think in the recent age all the people needed for life insurance. I most liked your word that if you go with life insurance “Living expenses to ensure your dependents can live comfortably”. It is nice post.

Thanks