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Old 09-01-2017, 08:13 AM
 
Location: Loudon, TN
5,767 posts, read 4,825,615 times
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No kids and a spouse that worked during our working years, so no need for life insurance then. Two pensions between us, both with 80% survivor benefit, so no need for it now that we're retired either. We are going to get pre-paid Neptune cremation plans though. Recently got one for 90 year old MIL and thought it would be smart for us too.
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Old 09-01-2017, 08:43 AM
JRR
 
Location: Middle Tennessee
3,676 posts, read 2,223,468 times
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For us, no kids and no insurance. When something happens to one of us, the other will just have to make it on Social Security, one tiny pension and our assets
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Old 09-01-2017, 08:49 AM
 
Location: The sleepy part of New York City
1,936 posts, read 1,202,324 times
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We still have 2.. $100,000. life insurance policies on my husband who retired a month or so ago, but the premiums are out of this world. They're like $500. for one. The other is a little less but not by much and it actually gives us interest every year. He's considering keeping that one but is still iffy about it.
He talks about cancelling them but so far he hasn't. I think he's afraid if he does it will jinx him and he'll kick the bucket the next day. He's the one that has to cancel them.. They're so particular now that I can't cancel them for him. I had trouble paying a bill online the other day because it was in his name.

If anything were to happen to him I really don't need that money. It would help but I'd survive without them. I'm not sure I'd survive without him though. He's my best buddy.
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Old 09-01-2017, 09:22 AM
 
Location: Loudon, TN
5,767 posts, read 4,825,615 times
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For us, it's not so much about surviving, but more that neither of us would want the last one standing to have to drastically reduce their lifestyle too much from what it is currently. It's bad enough to lose your love, your companion, your best friend, but to possibly end up having to give up your home, and suddenly have to live on a greatly reduced income, and start worrying about bills, etc. If it weren't for our pensions, I could see life insurance, and then some sort of immediate annuity after one of us passed.
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Old 09-01-2017, 09:43 AM
 
Location: Coastal Georgia
37,090 posts, read 45,594,679 times
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Quote:
Originally Posted by eliza61nyc View Post
I've been toying with this also. My sons are on their way to adulthood. (lol, one is fighting it tooth and nail, he's figured out that college is a pretty nice gig.)

So as it stands if I kick the bucket, they will each inherit a house with no mortgage and a pretty nice payout from some IRA's and 401K's.

LOL after all the stress they caused me as teens they definitely better get me a nice headstone.

I don't have grandkids yet. Do seniors with adult children keep life insurance policies?
We let our's go. We had $750k worth of term, which would expire in 2019. It was relatively cheap, since we took it out in our 40s, but the premiums were still a lot of money from our retirement budget. When we took it out we had a child at home, a business, and an expensive house to maintain.

We are pretty sure we are still going to be living in 2 years, and we don't anticipate high funeral expenses. We figure that the best we can do for our kids is to try to make our money last so we don't become a burden. Anything else is just gravy.
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Old 09-01-2017, 12:44 PM
 
12,825 posts, read 20,129,272 times
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Quote:
Originally Posted by MI-Roger View Post
I recommend people have at least a modest policy for funeral expenses. This makes it a lot easier for the family and Funeral Director as Life Insurance pays out almost immediately. This policy can be private pay, or from a former employer, or from other business/fraternal groups to which you belong.

Do you already own a cemetery plot, or burial crypt, or head stone? If so, then the size of the policy can be reduced.

Just my opinion...........
Our final expenses will be a mere fraction of liquid assets. No point in paying an insurance company when we can simply pay ourselves.
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Old 09-01-2017, 01:06 PM
 
Location: Raleigh
8,046 posts, read 5,886,300 times
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At 74 I keep a 10 year old term policy in place for benefit of my wife. If she does not outlast me, the kids are on their own.
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Old 09-01-2017, 02:22 PM
 
6,089 posts, read 2,819,346 times
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Quote:
Originally Posted by mathjak107 View Post
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 . .
Is there a threshold age beyond which this strategy no longer makes much sense? Or is it ALWAYS a good idea, assuming one can qualify for the life insurance?
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Old 09-01-2017, 02:40 PM
 
71,470 posts, read 71,652,652 times
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i think before 70 is best . after that you pay to much for insurance and you risk not qualifying . the idea is to leverage the policy by paying quite a bit less than you get .
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Old 09-01-2017, 03:23 PM
 
6,089 posts, read 2,819,346 times
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Quote:
Originally Posted by mathjak107 View Post
i think before 70 is best . after that you pay to much for insurance and you risk not qualifying . the idea is to leverage the policy by paying quite a bit less than you get .
Thanks!
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