U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Florida > Brevard County
 [Register]
Brevard County Space Coast: Palm Bay, Melbourne, Titusville area
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-01-2016, 06:46 AM
 
3,552 posts, read 6,174,470 times
Reputation: 3100

Advertisements

Quote:
Originally Posted by Nypafl4u View Post
I think you meant whole life insurance for the young ones..,it can be used as a college fund, investment or a nice wedding gift if you start young and build value over the years. A term policy will be worthless (hopefully) by the time your kids are old enough to realistically need it.

This is what I was talking about about prepaying for college. It locks in the price pretty much. College Savings Plans | College Tuition Funding | Florida Prepaid

As for termlife for kids definitely not. Whole life would be better and very inexpensive. A funeral for a child, if unfortunately needed, can be really hard to pay for with the cash up front. Funeral homes don't usually take payments over time.
Reply With Quote Quick reply to this message

 
Old 03-01-2016, 01:56 PM
 
Location: SoCal, but itching to relocate
284 posts, read 188,728 times
Reputation: 297
Quote:
Originally Posted by kokonutty View Post
No, no, no. Life insurance is to replace lost income for those supporting a family; purchasing life insurance for a child is a waste of money and there are dozens of better places for an investment on behalf of a child to save for the future.
Yes! This is exactly what I meant. Get a term policy for yourself and your wife, so if the worst should happen, the survivors aren't left in a financial bind. And do it now...you'll never be any younger/cheaper to insure. [And minor children can't inherit cash, so hence the need for a trust...and to avoid probate...etc., etc.]

I'm negative on any sort of whole life insurance. In my experience/opinion, the "investment" portion that the brokers tout is pretty lame. (The brokers, however, make a killing in commissions.) What you put away in savings for a child's education can always be used for other things, too, if they don't end up using it for that. Yes, you may miss out on same tax-advantage if the "other things" turned out to be final expenses, but if that were someone's situation, I'd imagine that would be the least of their worries.

I could go on and on, but I don't feel like it...and I didn't mean to hijack this thread!
Reply With Quote Quick reply to this message
 
Old 03-01-2016, 05:55 PM
 
Location: Long Island
784 posts, read 771,476 times
Reputation: 539
My misunderstanding to the original insurance statement. I of course would recommend a term policy for the parents. I also do like a whole policy for the kids, starting at a very young age. This does give tax deferred savings as well as a life insurance benefit should it be needed. I think it can make a great gift from the parent that has been making payments for the kid, to just give the policy over at college graduation, or other important next step. This gets them started in the right direction with a real value policy that could be cashed out or better yet, they keep it going and have it as needed (for much less than it would have cost had they started it as an adult). Just my own thought, knowing there are many avenues one can take in prepping for the future, this is just one that can work for some.
Reply With Quote Quick reply to this message
 
Old 03-01-2016, 10:42 PM
 
6,821 posts, read 3,799,360 times
Reputation: 14515
Quote:
Originally Posted by Nypafl4u View Post
My misunderstanding to the original insurance statement. I of course would recommend a term policy for the parents. I also do like a whole policy for the kids, starting at a very young age. This does give tax deferred savings as well as a life insurance benefit should it be needed. I think it can make a great gift from the parent that has been making payments for the kid, to just give the policy over at college graduation, or other important next step. This gets them started in the right direction with a real value policy that could be cashed out or better yet, they keep it going and have it as needed (for much less than it would have cost had they started it as an adult). Just my own thought, knowing there are many avenues one can take in prepping for the future, this is just one that can work for some.
It sounds like some insurance agent has you convinced. There are dozens of better ways to save for a child's future than through a life insurance policy; vehicles that will have better appreciation, no or lower fees and more favorable tax consequences. An actual death benefit for a child is foolish to pay for because children generally have no income to replace.
Reply With Quote Quick reply to this message
 
Old 03-02-2016, 05:02 AM
 
Location: Long Island
784 posts, read 771,476 times
Reputation: 539
As mentioned, this is just one option of many. I like to think that we will all live forever. Unfortunately, that is not the case. Having a policy of your own, that has real value when you get into your twenties, can be a nice comfort to know you have coverage when you have a family of your own. You just might need that death benefit. This is not thinking of the death benefit of a kid, but the value when you reach adulthood at a lower fixed rate. Bonus, should you have an unforeseen financial crisis, this is just another avenue to pull from. It cost so little if stated at a young age. I wish my parents did this for me. Thankfully, I will likely outlive my fist term policy. Then I will have nothing. To get another term policy will cost much more for me, with my family medical history now, when I still need it in about five years. I wish I had a whole life policy started for me as a kid. Again, just my opinion and not an insurance salesmans pitch (which I am not). There are always better options for a particular situation. I like this one for what if offers later in life more than early.
Reply With Quote Quick reply to this message
 
Old 03-02-2016, 10:17 AM
 
Location: SoCal, but itching to relocate
284 posts, read 188,728 times
Reputation: 297
Quote:
Originally Posted by Nypafl4u View Post
To get another term policy will cost much more for me, with my family medical history now...
I can relate to this (unfortunately). When I first got my 20-year term policy (our kids were about 3 and 5 years old), I was just a couple years out from a serious medical diagnosis. I was able to get the insurance, but the first two years' premiums were really high. However, after those first two years, the premium dropped significantly, which certainly helps. I wouldn't have known that was a possibility, so maybe shop around and ask...
Reply With Quote Quick reply to this message
 
Old 03-08-2016, 06:37 AM
 
Location: Merritt Island, FL
232 posts, read 299,777 times
Reputation: 160
A $500,000 term policy for each parent is optimum. If mom and dad's health is good, and you don't use tobacco, there are some tremendous rates out there. Make the term as long as you can... until the youngest child will be in it's mid-20s, if possible. Once you buy the policy, have it auto-deducted from your bank account. You'll never notice it's happening, and you'll be less likely to let it lapse if times get hard.

As previously stated, a trust (most include living will and advanced healthcare directive) is a smart move. Your kids will thank you down the road. They don't cost much to setup, and they're not difficult to maintain.
Reply With Quote Quick reply to this message
 
Old 03-08-2016, 09:47 AM
 
Location: SoCal, but itching to relocate
284 posts, read 188,728 times
Reputation: 297
Quote:
Originally Posted by clnewman View Post
A $500,000 term policy for each parent is optimum. If mom and dad's health is good, and you don't use tobacco, there are some tremendous rates out there. Make the term as long as you can... until the youngest child will be in it's mid-20s, if possible. Once you buy the policy, have it auto-deducted from your bank account. You'll never notice it's happening, and you'll be less likely to let it lapse if times get hard.

As previously stated, a trust (most include living will and advanced healthcare directive) is a smart move. Your kids will thank you down the road. They don't cost much to setup, and they're not difficult to maintain.
Exactly!!!

Hubby and I both got the $500K term policies, and I'm a stay-at-home mom. My current "job" isn't very remunerative, but my policy would allow my husband to replace whatever lost income he'd incur with the change in lifestyle he/kids would be facing if something should happen to me.

Something else to consider is the scenario where both parents are in an accident...one dies, but the other is disabled such that they can no longer work at their pre-accident level. The policy of the deceased parent (even if that parent hadn't been generating an income) helps to replace the lost income of the surviving/disabled parent.

All unpleasant things to consider, I know, but once the policies are in place -- especially with the brilliant suggestion of automatic deductions from your bank account! -- and getting that revocable trust in place, you never really have to think about it again. Makes for easy sleeping, which is hard to put a price tag on!
Reply With Quote Quick reply to this message
 
Old 03-08-2016, 10:26 AM
 
9 posts, read 6,531 times
Reputation: 15
My brother has been here over a year so his daughter is entitled to in state tuition. I think it's to prevent people from just coming for school and getting in state tuition, it's how they make their money, allowing out of state so they pay out of state.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Florida > Brevard County
Similar Threads
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 11:10 PM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top