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Old 01-01-2018, 10:19 PM
 
5,220 posts, read 2,375,434 times
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Quote:
Originally Posted by Crashj007 View Post
On your way to work next week keep a sharp eye out for unburied bodies left at the curb. You will not see any unless from a very recent wreck. Read cebuan's post again, then forget about insurance. You should have enough life insurance to cover expenses for your wife, children, and pets for five years. If you have none, you need none.
I bought a $20K whole life policy while I was in college to help a buddy who was entering the business. His explanation was that the policy payments and interest would accumulate over my life time and the policy would eventually pay for its own premiums. Did not happen. I would bet your parents got trapped by an agent into chasing after you for a whole life or universal life policy.
A.L. Williams eventually straightened me out on that fraud. His Motto was "Buy term and invest the difference" in mutual funds loaded into an IRA.
At your age $160/month should buy at least a $1.5 million policy. That would be a hell of a funeral. OTOH, a premium like that into an IRA or 401 or Roth plan would set you up to retire with $2 million in cash when you are ready. YMMV, see a tax accountant or an online calculator. Your employer may provide enough to bury you.
Tell the parents you want to be cremated by the mortuary school at the hospital where you die and forget about the flowers and coffin. Your SS death benefit would cover that. You could prepay that yourself. Funerals are for the living, let them pay for it. There's always GoFundMe.
Right now I carry a small policy which is expensive due to my age. That will lapse in a year or so and there is no need to renew it as the SO is well set.
"The above is not from an accountant but I did sell life insurance and mutual funds once upon a time"
What assumptions did you use to get to your $2 million number? It appears to be high.
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Old 01-02-2018, 12:05 AM
 
Location: Washington state
4,680 posts, read 2,296,137 times
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My parents bought me a small life insurance policy when I was little. Then it was a fortune. Now, to quote Erma Bombeck, it wouldn't bury a bird in a shoe box.

My friends are under orders to deny knowing me if I croak and I told the management where I live now to just put my body in a garbage bag and set me out with the trash.
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Old 01-02-2018, 02:27 AM
 
6,308 posts, read 4,765,469 times
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Quote:
Originally Posted by vanizorc View Post
my controlling/abusive parents are trying to force me to purchase life insurance with them as the beneficiaries. They quoted me $160/month, which is where the above figure came from. I told them I don't want to purchase it as it would be financially detrimental to me. They are currently throwing a tantrum about it. I want to arm myself with more counter-arguments in case they persist.)
What the h...?

It is just throwing money away. The best counter-argument is that you don't want to, but if you need an economic reason, here's one: if they want to be in a position where they stand to benefit from your demise, they should be the ones paying the premium.
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Old 01-02-2018, 02:30 AM
 
11,304 posts, read 5,834,479 times
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Quote:
Originally Posted by TaxPhd View Post
What assumptions did you use to get to your $2 million number? It appears to be high.
I didnít run the numbers but 6% return, maxed 401(k), some employer match, and 30 years probably gets you there.
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Old 01-02-2018, 07:43 AM
 
Location: Saint John, IN
10,638 posts, read 3,311,331 times
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Quote:
Originally Posted by vanizorc View Post
This was on the back of my mind as well. Yes, I am *certain* that I do not want kids or get married (and my parents know this), and the consensus here is that life insurance will serve no purpose for someone in my situation.

But hypothetically speaking, if I did have plans to have children/get married in the future, I've read that it would be better to buy life insurance sooner rather than later, to lock in lower premiums. I'm assuming you're saying that this is also a waste?

Also, is term life insurance just as useless as whole life insurance? (for someone with no dependents and will not have any)


Situations change and the older you get the more expensive life insurance gets! Not only that, you are healthy now, in the future you might not be so lucky!


At 27, I didn't want to get married or have kids and I was pretty set in my way of thinking on that until Mr. Right came along and that all changed, now married 16 yrs with 2 kids!


Who ever is quoting you $160 a month is quoting you a Whole life policy which you don't need! I would suggest though at least $100K ($50k at least) of a 30 year Term Life policy. If you are in fact healthy and of normal weight it would cost you like $10 a month!!


Even if you never get married, this would help pay for a funeral and any debt you might have had. The beneficiary could also be a charity if you wanted as it could also be changed at any time.


Life situations change and it's good financial responsibility to at least have some kind life insurance, but in your situation I would go with a Term policy, not Whole Life!
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Old 01-02-2018, 07:51 AM
 
Location: Saint John, IN
10,638 posts, read 3,311,331 times
Reputation: 12748
Quote:
Originally Posted by vanizorc View Post
So...I just spoke with the insurance dealer, and I refused the life insurance. Parents didn't put up a fight, so it's a good thing they didn't plan on murdering me I did, however, purchase Critical Illness Insurance for about $200/month (I think that was the quoted standard figure for my age; I'll have to wait until my health form application is processed to confirm).


OMG, IS THIS A JOKE???????????????? GO CANCEL THAT POLICY! YOU JUST GOT TAKEN FOR AN IDIOT!!


Sorry, but someone your age DOES NOT need a policy like that! What the heck were you thinking




Advice......cancel that policy ASAP, go to a DIFFERENT insurance agent and get a $50k term life policy for $10 a month!
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Old 01-02-2018, 08:14 AM
 
Location: Omaha, Nebraska
6,297 posts, read 3,474,966 times
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Quote:
Originally Posted by vanizorc View Post
Just wondering -- would the money be better spent/invested elsewhere, for someone in my situation?
Skip the life insurance (which you don't need), and skip the "critical illness" insurance (which is a ripoff), and get disability insurance.
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Old 01-02-2018, 10:51 AM
 
Location: Wisconsin
16,471 posts, read 15,905,878 times
Reputation: 38735
Quote:
Originally Posted by Aredhel View Post
Skip the life insurance (which you don't need), and skip the "critical illness" insurance (which is a ripoff), and get disability insurance.
I agree that "critical illness" insurance is probably a rip-off but disability insurance can be very useful.

And, a reasonable amount of term life insurance now, while you are young and in good health, may be a good idea because your situation may change in the near future.

I would be pretty upset if my parents wanted me to get an expensive life insurance policy, that I couldn't afford, with them as the beneficiaries. Heck, if it was that important to them they should take it out and pay the premiums.
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Old 01-02-2018, 11:12 AM
 
Location: New York Area
13,402 posts, read 5,203,318 times
Reputation: 10753
Quote:
Originally Posted by germaine2626 View Post
I agree that "critical illness" insurance is probably a rip-off but disability insurance can be very useful.

And, a reasonable amount of term life insurance now, while you are young and in good health, may be a good idea because your situation may change in the near future.

I would be pretty upset if my parents wanted me to get an expensive life insurance policy, that I couldn't afford, with them as the beneficiaries. Heck, if it was that important to them they should take it out and pay the premiums.
I would choose a disability policy over a life policy any day. If you are ill to the point of disability you always have to pay for yourself. Death may not come for some time.
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Old 01-02-2018, 01:55 PM
 
48,891 posts, read 39,370,650 times
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Quote:
Originally Posted by vanizorc View Post
I'm currently 27 years old, in good health. I intend to stay single forever, and do not want children, so I will not have any dependents in the future. I also do not currently have any debt, besides possibly a mortgage in the future (though not in the "near" future, as real estate prices in my city are insane and I am nowhere near being able to afford a downpayment at the moment).

Just wondering -- would the money be better spent/invested elsewhere, for someone in my situation?


Edit: Just to add, I did search online for answers, but all the articles discussed were cases where the single person had plans to have children and get married in the future, which did not apply to my situation.
Assuming you have other family in your life, a funeral can cost 15k or so pretty quickly.

If you don't have enough money to pay for that, box up your belongs etc. then consider buying a SMALL term life policy.

You can probably get a 20-year term life policy of 25,000 for a ridiculously small amount of money at your age. Avoid any policies that have "investment" features. Just get basic term life and invest your money elsewhere.

You may carry basic life insurance through work so that may be sufficient as it is.
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