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I just found these forums a few days ago, very informative! I did a search and can't find anything on this, so I wanted to see if anyone has obtained a life insurance policy around the time you retired?
I have a policy with my job, but once I leave , obviously I won't be able to keep it. Is that something to consider if you're going to be retiring without all the 401ks, IRAs, big bank accounts?
My husband and I will get a small, but enough to live on, retirement within a year but don't want to get the reduced amount so that the surviving spouse can continue getting it upon death. We're in our early/mid 50's.
No huge health issues yet, hubby has the beginnings of glaucoma. I guess I am wondering if that's a way to go, for when something happens to one of us, the other would at least have something to invest/live off of.
I just found these forums a few days ago, very informative! I did a search and can't find anything on this, so I wanted to see if anyone has obtained a life insurance policy around the time you retired?
I have a policy with my job, but once I leave , obviously I won't be able to keep it. Is that something to consider if you're going to be retiring without all the 401ks, IRAs, big bank accounts?
My husband and I will get a small, but enough to live on, retirement within a year but don't want to get the reduced amount so that the surviving spouse can continue getting it upon death. We're in our early/mid 50's.
No huge health issues yet, hubby has the beginnings of glaucoma. I guess I am wondering if that's a way to go, for when something happens to one of us, the other would at least have something to invest/live off of.
I have a term life insurance policy that is coming due (ending) this year and if I don't croak by the due date all will be lost. It was a $100K policy for my kids, the yearly premium was $275.
If I choose to start a new policy it will cost me a fortune in premiums (I am 62). Now I have a preexisting condition, whereas when I took out the first policy, I didn't. I have to think long and hard about whether I have a policy at all.
Suze Orman and others warn against "whole life" policies (I forget her reasoning) - these premiums are much more expensive - but in hindsight maybe the was the way to go.
aside from shifting tax free money around and being a way of making taxable retirement money into never taxed money life insurance can be useful in un-orthodox ways.
2nd marriages are a good example of thinking outside the box.
marilyn and i have kids from our first marriges. we are leaving everything to each other.
life insurance is a good way to give the children something so they dont have to wait for the surviving spouse to die.
if one person has pension and there are no survivor benefits that person may need to get a life insurance policy on themselves so the spouse doesnt loose the income if the pension stops. that happens alot in 2nd marriages.
when you retire early and one spouse is older than the other and the older spouse dies the younger one may be to young yet to hit the retirement money if under 59-1/2..
basically anytime there is an un-equalness if something happensd to one spouse life insurance is the great equalizer. dont go with whole life though,they are rips no matter what.
what finds its way into cash value is tiny compared to what the premiums are that go in . your actually paying for the use of the insurance well into old age so you can pay 5 to 20x what term cost if you dont keep the policy forever. if you do keep it forever the hitch is they keep all that extra money you sent in to go into the savings part and only pay the death benefit.
of course they will be glad to sell you what amounts to more insurance and up the death benefit to include some of that savings you would forfeit.
most policies are cashed in early and never go full term. the insurance company makes tons of profit off all those people.
either way you loose.
if all you want is temporary coverage there is no question term is the cheapest way to go. like auto insurance ,like home insurance ,when you no longer need it its gone. no point paying 5-20x as much for the insurance part for decades and then not using it. that cash value is but a token of what you payed in.
Last edited by mathjak107; 05-24-2011 at 06:18 PM..
I've heard that too, Dave Ramsey is also against Whole Life policies. I guess they figure that by the time the Term policy runs out, one should have enough assets in other areas. Not us.
I'd just like to know that if something happens to one, the other isn't stuck without enough to live on. If he goes before me, I'll have $450. per month until SS (if it's still there) at 62. Then I'd probably be ok as that would be another $800 or so.
I have a term life insurance policy that is coming due (ending) this year and if I don't croak by the due date all will be lost. It was a $100K policy for my kids, the yearly premium was $275.
If I choose to start a new policy it will cost me a fortune in premiums (I am 62). Now I have a preexisting condition, whereas when I took out the first policy, I didn't. I have to think long and hard about whether I have a policy at all.
Suze Orman and others warn against "whole life" policies (I forget her reasoning) - these premiums are much more expensive - but in hindsight maybe the was the way to go.
Don't do it, NEG!
Your children are grown and out of the house.
You're single.
All you need to leave behind is a policy (or a joint savings account with one of your kids) big enough for the funeral!
Totaly agree w Gandalara!
We as mothers feel we need to always take care of our children. But we can better exist without spending on a policy. We can leave behind enough to pay off our bills and funeral.
Don't do it, NEG!
Your children are grown and out of the house.
You're single.
All you need to leave behind is a policy (or a joint savings account with one of your kids) big enough for the funeral!
I have a term life insurance policy that is coming due (ending) this year and if I don't croak by the due date all will be lost. It was a $100K policy for my kids, the yearly premium was $275.
If I choose to start a new policy it will cost me a fortune in premiums (I am 62). Now I have a preexisting condition, whereas when I took out the first policy, I didn't. I have to think long and hard about whether I have a policy at all.
Suze Orman and others warn against "whole life" policies (I forget her reasoning) - these premiums are much more expensive - but in hindsight maybe the was the way to go.
the way to go was term and invest the difference between the 2 policies. after decades the investment will far eclipse the value of the policy death benefit and especially the cash value.
again, if you die you loose the cash value you saved as you forfeit it.
if you take the cash value then you paid extra dearly for the use of that insurance into old age and not ever utilizing what you over paid in premiums for .
Totaly agree w Gandalara!
We as mothers feel we need to always take care of our children. But we can better exist without spending on a policy. We can leave behind enough to pay off our bills and funeral.
yup-
I don't know how common it is but my mother had everything prepaid. Even had the urn she wanted picked out.
In another case, my sister's husband has a term life insurance policy (350K) that ends in 7 years. I believe she said the annual premium is close to $1,000. She confided that they don't know whether to keep paying on it for the next 7 years, or drop it. She is 60 and he is 63. He's in excellent health and she, not so much. They're still in the workforce, no dependents. If for some reason he goes before her, she will be alright as he has good investments. Should they give it up or pay out the 7 grand over the next 7 years?
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