Are you buying life insurance and why?

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Dgflorida
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Joined: Wed Oct 07, 2015 8:10 pm

Are you buying life insurance and why?

Post by Dgflorida » Mon Aug 12, 2019 3:15 pm

I get regular solicitations to buy term life insurance. Generally, they say for final expenses, funeral costs. Have you bought term life insurance and do you think it is worth the cost?

SandiSAHM
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Joined: Fri Aug 28, 2015 11:46 am
Location: Oklahoma

Re: Are you buying life insurance and why?

Post by SandiSAHM » Mon Aug 12, 2019 5:14 pm

I have it in case I die and DH needs a boost to carry him over 'til the kids move out.

DH has it in case he dies and I need (way more than...) a little boost to tie me over 'til the kids move out.

Weirdly my Dad bought some to cover both kids. They've each been covered since birth, it's not a term policy it's a savings account disguised as insurance, so they both have quite a bit of value in those. I think sometimes about cashing them out and sticking the $ in a better investment and handing it to them when they're ready to buy a house or something.

My Dad bought life insurance when I was born, too. A small policy, kept it going and gave me the value when I got married.

Our term policies are just about to run out of term. We'll re-up him at the same $, but the value of what I bring in is nowhere near the value of what he brings in, and I'm 10 years older and more expensive to cover, so my coverage will be lowered.

If I were older and my kids were established in their own lives and there was enough in the bank (or elsewhere) to cover funeral expenses then no, I wouldn't have life insurance. The only point of it at that stage is to keep your kids from having to pay for your funeral and if your estate can cover that, there's no reason.

2dogs+someCats
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Re: Are you buying life insurance and why?

Post by 2dogs+someCats » Fri Aug 16, 2019 12:57 pm

Dgflorida wrote:
Mon Aug 12, 2019 3:15 pm
I get regular solicitations to buy term life insurance. Generally, they say for final expenses, funeral costs. Have you bought term life insurance and do you think it is worth the cost?
I have never purchased term - I have the other kind that I no longer have to pay premiums for because of some kind of class action settlement with Prudential - now they have to provide my $50K policy for free and it earns interest, dividends, etc.

My employer has a (no cost to me) term policy on me at 2x my annual salary, up to $100,000. So if I pass (hope not!) while still employed there, that money goes to my kids. I have the option to take over the policy when I retire - I probably will.

To me, the purpose of both policies are to cover final expenses (any outstanding bills, etc.) and leave some money to my children. While I think inheritances are GIFTS and NOT birth-rights, I am able to do this for my kids - so I'm glad.

colonialgirl
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Location: Central Illinois

Re: Are you buying life insurance and why?

Post by colonialgirl » Sat Aug 17, 2019 1:11 am

Term is your cheapest life insurance by far.

Hubs and I have enough put away for our final expenses, so we don't have life insurance. I take that back - we have a free 1000 policy that comes with our Credit Union savings account, but that is it.

The purpose of insurance is to replace income for me. If we were a family with young children to raise and educate, then I would be loaded with insurance. But there is no reason for us to have insurance. And insurance, though Lord knows it is how I made my living for years and I know it is sold that way, is a pathetic investment vehicle.

I guess if you are poor and older and want to spare your children funeral expenses, it is ok. But if you can afford to bury yourself, then it is just a waste of money. Or like Sheila says - it is a choice she is making to ensure an inheritance for her kids - then great. But insurance agents take advantage of so many people. Probably a better idea for a senior is to comparison costs final arrangements and have them made for their kids. My niece did that when my sister became ill. The range for creamation services ran from $750.00 to $9k. Quite a difference.

mbrudnic
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Joined: Fri Aug 28, 2015 7:57 am

Re: Are you buying life insurance and why?

Post by mbrudnic » Sat Aug 17, 2019 6:51 am

I do. I have a kid in College and am determined and committed to giving him a chunk of $$ so to keep his loans to a bare minimum. He was quite happy to announce that he did not have to take out any loans for this Fall semester.

Maggie

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MackerelCat
Posts: 1929
Joined: Thu Aug 27, 2015 9:44 pm

Re: Are you buying life insurance and why?

Post by MackerelCat » Sat Aug 17, 2019 12:38 pm

We have life insurance on each other for a couple of reasons: Our house is not yet paid off, though will be in two years; should he die before me, I will need extra income until I retire; should I die before him, he will need to hire a helluva good housekeeping service. :-D

Our cremations are already paid for, so that is not an issue.
Mackie

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