U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
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 08-31-2017, 02:57 PM
 
Location: Somewhere in Colorado
154 posts, read 99,893 times
Reputation: 319

Advertisements

Before I retired, I had a $200K policy that was free from my employer. Nothing since, but I do have it in the back of my mind to pre-pay for funerals one of these days. Haven't had "that talk" yet.
Reply With Quote Quick reply to this message

 
Old 08-31-2017, 02:59 PM
 
2,952 posts, read 1,637,153 times
Reputation: 5292
I have one that is a combo life an LTC. Costs $8,000 per year and worth every dime to my piece of mind.

At a certain place financially, you have it to offset estate taxes. Should that become an issue again. You have to buy it while you can.
Reply With Quote Quick reply to this message
 
Old 08-31-2017, 03:02 PM
 
12,825 posts, read 20,135,648 times
Reputation: 10910
Quote:
Originally Posted by M3 Mitch View Post
Right now I have just what I get "for free" from work. House is paid for, close to $1M in 401K, no debt. DW should be able to "take it from here" if I buy the farm.

No bio kids. DW has her daughter here in the US (she's from Ukraine). Daughter has a good career as an accountant, married to a guy who quit Microsoft to work at a startup. Already they don't need any money from me, not at all.
Yep, no kids, paid for house, 401K and IRAs with proper beneficiary (DW), etc.

If / when I ever don't have one from an employer, I'm done. No more need.
Reply With Quote Quick reply to this message
 
Old 08-31-2017, 03:11 PM
 
Location: Florida -
8,763 posts, read 10,837,755 times
Reputation: 16633
Some pension plans offer options (ie; life of pensioner, life of pensioner and spouse, etc). We found that the difference between the max and minimum pension options far exceeded the cost of a sizable term life policy, so maxed the pension and supplemented it with a term life policy.

I thought about carrying a life insurance plan to offset estate taxes, but the 'kids' are doing well so I saved the cost. We also carry Long Term Care insurance, which does not include a life insurance option.

The bottom line is that there are sometimes good reasons for carrying life insurance in retirement ... that do not necessarily include burial expenses or raising kids.
Reply With Quote Quick reply to this message
 
Old 08-31-2017, 03:26 PM
 
Location: Central NY
4,664 posts, read 3,241,188 times
Reputation: 11932
After divorce, no life insurance. Unless the ex has one on me. Maybe that's why my daughter hopes I die first. Charming child.

I did buy a $5,000 life insurance policy a couple years ago. My nephew is beneficiary tho he isn't talking to me right now. Nothing big for him to do, send me to a crematorium and call the Rescue Mission for contents of apartment.
Reply With Quote Quick reply to this message
 
Old 08-31-2017, 03:28 PM
 
71,518 posts, read 71,694,121 times
Reputation: 49099
permanent life insurance which is 100% tax free can be a really nice planning tool .

i can leave my tax infested ira's to my wife who has no clue how much she gets to live on , how much taxes are , and she has to take take those big rmd's after i am gone and file single too .

but if i use some of my ira money to buy a single premium policy equal to the ira it won't cost any where near the policy value . it is tax free and whatever is left over the kids can pay the tax on the ira over their lifetime .

so the only tax in that deal would be on what i use to buy the policy which is leveraged since you get much more than you pay in . .
Reply With Quote Quick reply to this message
 
Old 08-31-2017, 03:48 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,381,010 times
Reputation: 13956
I am one of those approaching 70 who moved six months ago and purchased a condo for more than we sold the old house for. We needed a mortgage because I did not want to dig into what we had for retirement savings.

I have always had two small policies to take care of the end but when I took out the mortgage I took out another policy (not cheap) to cover the mortgage for my wife in case something happened to me.

The current plan is to have the mortgage paid off in less than three years by tripling the payment and when it's paid off we drop the life insurance.


As far as the kids I will always have enough to bury me but that is about it.

If I was single I would be happy with a $10k policy to bury me and that would be the end of that.
Reply With Quote Quick reply to this message
 
Old 08-31-2017, 04:00 PM
 
13,891 posts, read 7,395,585 times
Reputation: 25379
I don't have dependent children. That's when you need life insurance.

Mathjack's comment might make sense for some people. I think the main reason a retired couple would have life insurance is if they both had similar sized Social Security checks and it would be a real hardship if a spouse died to try to live on just one Social Security check. Or you remarry at an older age and haven't crossed the 10 year mark where Social Security survivor benefits kick in.
Reply With Quote Quick reply to this message
 
Old 08-31-2017, 04:02 PM
 
71,518 posts, read 71,694,121 times
Reputation: 49099
it really is a case of some tax free guaranteed amount after one spouse dies or roll the dice on markets totally and what taxes will be like at a single rate.

the life insurance goes with your own investing too .
Reply With Quote Quick reply to this message
 
Old 08-31-2017, 04:29 PM
 
13,891 posts, read 7,395,585 times
Reputation: 25379
Quote:
Originally Posted by mathjak107 View Post
it really is a case of some tax free guaranteed amount after one spouse dies or roll the dice on markets totally and what taxes will be like at a single rate.

the life insurance goes with your own investing too .
I've been married a couple o' times but I've filed single most of my adult life. You need to be higher income than most retirees before you have much of a Federal income tax burden. At $200K, your effective tax rate is only about 23% and that's taking the standard deduction. When you're retired, you're not paying Social Security and Medicare taxes on your income. Most people won't pay Federal income taxes on their Social Security check. Tax rates are so incredibly low in the United States compared to the rest of the first world that you need to be pretty high income before you need to bother with tax avoidance strategies.

You pay NY state and city tax so the math is different.
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:

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 > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

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