I would think people mostly get life insurance when they are younger. Hopefully you reach a point where you have no debt, and you have the money to cover your needs for the next however long. At that point you are self insured, more or less. I could go out and spend more money than necessary to get life insurance (at my age) but if I die tomorrow my wife won't go without anything she wants to do.
We talked about how much it takes for retirement, but we didn’t talk about…
- Thread starter Bear Paw Jack
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I'm 65 wife is a couple months older.
I don't view life insurance as an investment, and frankly being a former salesman I never liked the rate of return on whole life. It is protection and I understand why some buy it .
I have none, neither does my wife, and we aren't concerned. Being cheap, frugal and living in the same house 40+ years negates our need for life insurance.
That's because it is never explained as a wealth tool/investment. I didn't learn about it until a few years ago. No help for me now, but it could be great for my kids if they can keep up with the premiums. Instead of x amount to Fidelity, Schwab etc, each month pay for a policy on me, or my wife, or both. Collect a far better return in a shorter time period.
I know someone who bought a large whole life policy ( think they called them a VAL 25 years ago ) that was tied to an annuity that guaranteed 5%. At the time, 5% wasn't much. And it could be over-funded. Now all these years later the cash value is more than the total premiums paid AND the beneficiary amount is still in place. If a man fell on hard times that cash value can be applied to the premium payments too. And you could borrow against it. Lots of options.
Life insurance is one thing I strongly disagree with Dave Ramsey about. He is naive enough to think people will buy cheap term life and use the "extra" or "savings" to pay down debt. Nope, they use it for Marlboro's and Miller Lite.
Life insurance is one thing I strongly disagree with Dave Ramsey about. He is naive enough to think people will buy cheap term life and use the "extra" or "savings" to pay down debt. Nope, they use it for Marlboro's and Miller Lite.
Interesting theory provided they have money left for the whole life insurance after they've spent their social security. Plenty of people struggling the last few years, or has someone forgotten that.
IF Everything Works Correctly! IF they have paid in long enough!!! But IF someone is broke what's the first thing that goes. But it's all theoretical!!
Problems Like This occur over years.
Problems Like This occur over years.
KIR
Sparks, NV
- Joined
- Mar 2, 2022
- Messages
- 1,345
It's not enough, it's never enough!
I know if it had been explained differently to me when I was young I would have done things much differently.
This just came to me. Term life is just like rent. The money is just gone. Whole life is like buying your home. There is at least some return if not a good return.
This just came to me. Term life is just like rent. The money is just gone. Whole life is like buying your home. There is at least some return if not a good return.
David Lee Valdina
Bearcat
In spite of the very best estate plans, a serious illness followed by a life in a nursing home can force you to spend all you have so that you then can get Medicaid benefits. There is a five year look back on what you give away. I think it makes sense to have loving children and grandchildren you can give to when you are able, and if later you need help, they are in a position to give help. For those people who have strong family bonds, this works out well. For those who are young, it makes sense for a lot of reasons to make for better relations. Homesteading your house gives some benefits and is a state specific thing, so read up on the procedures in your state.
JackBull
Blackhawk
JackBull
Blackhawk
Nope. Invested instead.
- Joined
- Mar 14, 2017
- Messages
- 388
Made a lot more money by putting money into 401k than ever would have made with whole life. I am not a believer in life insurance as an investment/retirement tool.
My wife is my CFO. She knows how much we have and we the money is. She'll be fine when I go.
When I "retired" from the military I had the option of giving up part of my pension in return for having my wife covered for 55% of that pension if I died. But at the time I felt I could not afford to give up that much monthly, so instead I bought 20 year term insurance to cover her during those first 20 years. But I didn't die, the insurance expired, and now, while we live well, that military pension is the largest part of our monthly income. If I die before her, she gets only 15%, and of course, the total from Social Security will decrease as well. The money I have invested is fine and able to add to our quality of life even if we live for 100 years, but if I should die before her, that invested money will go rather quickly to maintain the quality of life that we have become accustomed to. I've told her that the solution is to make sure she dies before me. And if either of us ever have to go into a skilled nursing facility, everything that I have invested will only cover a few years in a quality institution.
So I have decided that she needs to die before me, and I have to keep riding motorcycles which I both enjoy and which maybe will someday be the end of my life without the need for a nursing home. Problem solved, sort of.
So I have decided that she needs to die before me, and I have to keep riding motorcycles which I both enjoy and which maybe will someday be the end of my life without the need for a nursing home. Problem solved, sort of.
Huskerguy72
Single-Sixer
My wife of 50 years and I have this "talk" regularly. We are 69 and 68 and sitting good right now. This inflation mess is eating everyone up and will continue to do so. Another story.
I get a pension from the state for teaching, we took a reduced amount each month for her to get half of that amount when I pass. If she passes before me then it reverts to a max amount for me. It won't be a pile of money but helps. She will get my SS since it is higher of the two. She receives a small pension from the state and she will still get that until her death. Plus we invested in some rental property that brings in income each month (wish I had more rentals) and she would likely turn these over to a management company and still retain the income but if she wants, she can sell them. Then we have IRA's that should produce 30K a year in income without touching the principal. The multiple pots of money works for us and even now in retirement we do not spend all be take in, we are still saving.
In these conversations we talk about the what if's more on the personal side. It is most likely I will go first, she is the healthiest and has longevity genes in her family. We both cringe at the thought of dating, getting to know, having sex or even kissing someone else. The thought is somewhat revolting but reality. She says she has a list of the requirements any guy would have to meet including using all of my power tools, being a Born Again Believer, and taking care of my guns and of course be conservative to which we both laugh. My requirements are much less but won't go there!
The biggest fear and we definitely have this conversation because we have seen it WAY too often, is to not get taken by some potential smooth talker who comes along and uses their charm to rinse your mate clean of money. We can count many times this has happened to women, just recently one had 300k save and everything paid for, she has zero and a mortgage now. Another was an aunt who had lots of farm ground, the guy got it all the kids nothing. Sad.
And then, there is the what if we both go at the same time scenario. We have a Trust so our kids can essentially start selling property, access bank accounts and IRA's the next day. I would not want a will because of probate and hungry attorneys.
I get a pension from the state for teaching, we took a reduced amount each month for her to get half of that amount when I pass. If she passes before me then it reverts to a max amount for me. It won't be a pile of money but helps. She will get my SS since it is higher of the two. She receives a small pension from the state and she will still get that until her death. Plus we invested in some rental property that brings in income each month (wish I had more rentals) and she would likely turn these over to a management company and still retain the income but if she wants, she can sell them. Then we have IRA's that should produce 30K a year in income without touching the principal. The multiple pots of money works for us and even now in retirement we do not spend all be take in, we are still saving.
In these conversations we talk about the what if's more on the personal side. It is most likely I will go first, she is the healthiest and has longevity genes in her family. We both cringe at the thought of dating, getting to know, having sex or even kissing someone else. The thought is somewhat revolting but reality. She says she has a list of the requirements any guy would have to meet including using all of my power tools, being a Born Again Believer, and taking care of my guns and of course be conservative to which we both laugh. My requirements are much less but won't go there!
The biggest fear and we definitely have this conversation because we have seen it WAY too often, is to not get taken by some potential smooth talker who comes along and uses their charm to rinse your mate clean of money. We can count many times this has happened to women, just recently one had 300k save and everything paid for, she has zero and a mortgage now. Another was an aunt who had lots of farm ground, the guy got it all the kids nothing. Sad.
And then, there is the what if we both go at the same time scenario. We have a Trust so our kids can essentially start selling property, access bank accounts and IRA's the next day. I would not want a will because of probate and hungry attorneys.
hers or my SS would end of course but I will get 50% of her pension(s) and she would continue getting 100% of mine ( I took a lower pension amount to do this- she wasn't given that option) All other assets go to the survivor We should be OK. One of the few benefits in Illinois is that they don't tax retirement income.
I've got a free life insurance policy from a former employer, and (IIRC) another one courtesy of my NRA membership. Neither one amounts to much, but I think it's enough to pay for cremation and an empty coffee can.
