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Irate 101: Life Insurance

Fivepointfive

Fivepointfive

Guy in the back
Joined
May 19, 2020
Member Number
135
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322
Loc
Beside the point
Pretty sure my wife wants me dead, but at least her reasoning is sound. It's about time I got some life insurance.

Late 40s, good health, one kid. What should I look for?
 
Fivepointfive said:
Pretty sure my wife wants me dead, but at least her reasoning is sound. It's about time I got some life insurance.

Late 40s, good health, one kid. What should I look for?
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I'm sure you already know this, but life insurance is to benefit the people you leave behind, so think about how well off you want her to be.

The richer she is, the better her cougar game will be to land some good hard strong verile D.

Just trying to keep it real here
 
How old is she?
How well off are you financially?
Kids?

term is the only way, don't get fooled by the gimmicks
 
Derp said:
I'm sure you already know this, but life insurance is to benefit the people you leave behind, so think about how well off you want her to be.

The richer she is, the better her cougar game will be to land some good hard strong verile D.

Just trying to keep it real here
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Spoken like a true friend. :laughing:
 
I did a 250k 15 yr term - Rate of Return. Will get my money back if I'm not dead and will use that money for my daughters college expenses. Its $1000 a year though....
 
Dont waste your time on doing a whole life policy, go term.
For some reason a few brokers tried really hard to sell me a whole life policy that made 0 sense.

I have $500k in coverage, I figure that makes it possible for my wife to pay off our debts, and live for a few years without needing to worry about money.
 
I generally point my clients to term life.

For those that don't know, life insurance comes in 2 basic forms. Term and Permanent.

Term is pure insurance. You pay the ins company and if you die, they pay your beneficiary. It's the cheapest way to get life insurance. There is no cash value. And it has a defined period of time that the contract will run, then it stops. IE 10 year, 15 year, 20 year or 30 year. After that you have to buy a new policy at your current age. I usually recommend people have a term policy that will run for as long as they are employed making an income. At retirement, if you did things right, you will have a paid for house, no kids running around it and money in the bank to pay for a funeral. So the need for life insurance is gone.

With Permanent insurance, there are a few kinds. Whole life, Universal Life, Variable UL, and some other odd concoctions of the insurance companies. These all will last as long as you live as long as the policy is set up right. UL and VUL policies generally rely on the build up of the cash value to pay for the policy in later years. Right now I am dealing with a lot of pissed off 70, 80 year olds who bought them from my predecessor when interest rates were 7-10%. Now interest rates are 0-1% and their life insurance policy is blowing up.
 
Figure up what it would cost right now to be completely debt free, and go 40-100% over that.

I will hook my family up when I die, but they're not building a new house and getting Escalades and shit.
 
I have plenty of shit she can sell and be fine. I am self insured at this point. plus I have 2 times my salary at work. she hit me up a few years back about getting insurance on her, I was like why?
 
Look for a ' Return of premium' rider on a Term life insurance policy.

Essentially you get the money you paid back at completion of the term if you pay as agreed & don't die. So all you gave up with the interest/ appreciation of the money,


Lots of insurance guys are slimeballs, but there are some good ones. so just make sure you get terms in writing up front with time to review & understand it before signing on the dotted line.
 
crispins said:
I got a policy from Farmers.

I have $400k for not that bad money.

I recommend them.
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IIRC, you're single with no kids, right? if that's accurate, then what's the justification for having life insurance?

Genuinely curious; not trying to start shit.
 
I'm also wondering if I should get it. I think working with my wife to come up with a plan for if I die might be smarter. At this point she could sell all my/our shit, buy a nice condo/townhome cash and have 500k in the bank. However all I really care about is that my kids would be taken care of
 
Shop around. Have a policy through Edward Jones, but shopped other providers as well. Farmers was about the highest price wise.
 
Whole life insurance salesmen are like used car salesmen that only want to harp on how low your bi-weekly payment will be and not talk about the interest rate and term. Some people still push whole life because it makes them the most money.

I saw a pretty good clip on youtube of Dave Ramsay tearing apart a whole life salesman who made the mistake of calling in knowing little more than what was in his own sales pitch, but trying to tell Dave he was wrong.
 
Both the wife and I have one that will allow the other to pay of our debts and live comfortably for a year or so with no income.

Two things to keep in mind:
Your monthly payment doesn't change once you have the policy.
A big factor in how much you pay hinges upon how healthy you are.

If you're overweight, have high blood pressure, high cholesterol, etc, it might be worth it to spend some time trying to get those numbers perfect before applying. Great example: I had two friends who started a business together and got life insurance on each other so if something happened, the business would survive the hit. They were the same age, but one guy was fit and the other smoked, drank too much, and had gotten pretty fat over the previous few years. They got the same plan, but my fit buddy paid $80/mo and the out of shape one paid $250/mo.
 
I bought a Northwestern Mutual term policy back in college, $500k in coverage, I pay $26/month on it ~ 15 years later. Term policies will skyrocket in monthly payments at older ages though, so you pretty much need to be able to self-insure (real estate, businesses, etc), and walk away from it. From the research I’ve done, they are one of the best companies, and will even pay out in the event of a suicide after 2 years of payments.

Wife has a whole life policy with $1 million in coverage, premium is ~ $600/month, but it has some substantial advantages from a non life insurance standpoint. It is commonly used as a tax shelter, you can pause payments, pull money out of it to purchase land, companies, whatever (it does decrease the payout), and it will pay out the full coverage amount if you become permanently disabled.
 
- get term life insurance ( not whole life insurance, which is generally a better deal for the person selling it than the buyer, unless you're super rich and need tax shelters)
- shop around
- check out comparisons, i recommend policygenius.com (just a satisfied customer)
 
My wife and I both have $400k term life policies. Mine is $20/ month and hers is $25/month. We got it at 34 yrs old. 20 year term.
 
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