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During my "working career" I had 5X salary on a term policy and I started weening it down after the kids got out of college and the house was paid for. Now I still have a $500,000 policy the company took out on me that will cash out in 3 years when I turn 65. Cash value will be $55,000 so I continue to pay into it.
No children, so I will just take the free policy from work when I retire which is about $30,000. When my husband passed the cemetery plots and headstone were purchased at that time, so the remaining expenses since I really want zip for a funeral should be minimal and enough left over my survivor's to celebrate an Irish wake at the local pub along with making a nice donation to the local animal shelter.
No I have been of the school of insurance is basically an income replacement tool. I know it isn't only that but we have no financial obligations that require insurance ie a mortgage. As mathjak says it could help in saving taxes for DW if I were to pass with a policy. I might consider it in the future but for now.
Before you remind me I do know that I might not qualify for life insurance in the future.
I have noticed a few posters have said they do not have insurance now but plan to buy it in the future.
Not trying to be a grim person here, but how much future do any of us have? Accidents happen, illnesses happen, none of us is walking around with a guarantee.
I have it because I don't want my survivors get stuck paying for my burial. Has nothing to do with replacing an income.
I have a Globe Life Insurance policy for $20k that has a very inexpensive annual payment, IMO. I have made 4 Christian charities that are near and dear to my heart as equal beneficiaries, that is the only reason I carry it. My only child is the beneficiary of my paid for home.
I divorced my Ex when my son was 3 and I was broke at the time. I got a $ 500,000 term policy to cover the $ 1,600/mo child support for 15 years and leave $ 200,000 for college. By the time he was 10 or so, my situation had improved radically and I was able to easily cover all that from savings (his inheritance), so I cancelled the policy.
When I buried my wife it cost $13k all together and there were some medical bills that I had to cover. My parting costs will likely be higher because I moved 1000 miles further away. That money will come out of an insurance policy. My father in law had a prepaid burial policy that covered everything and made things very easy but he lived in the same town and had no intention of moving. I don't know if those are portable if you move around...I suspect not.
I've got a $100 K policy that I've had for over 30 years, and keep it for my wife, not my kids.
I plan to keep it until I turn 70, and at that point the premiums will be at the point that I no longer will want to keep it. If I go before 70, she can use it to significantly pay down the house mortgage. Then, she can refinance it with a much lower monthly payment.
When I retired from the Air National Guard at age 52 I lost my $400,000 SGLI. I got a 20 year term policy to ensure my wife would be able to survive on her own. By the time I'm 72 we'll be at a point where either of us will be financially secure regardless of who goes first.
I have a small free policy through work, but that will end when I retire. I am single and my daughter is grown with a nice 6-figure income of her own. My assets are more than enough to cover any burial costs and leave her a tidy inheritance. I have no need for life insurance in retirement.
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