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.
I actually no longer have a Premium! Most Whole life policies require you to pay a premium till death, but when I was 18, the broker who wrote the policy gave me a policy that lasts for 20 years, then the dividends on the policy continues to pay the premiums till death.
whole life is priced so by age 100 the premiums, interest and dividends equal the policy death benefit and you are self insured .
many companies just send you back a check dead or alive
I actually no longer have a Premium! Most Whole life policies require you to pay a premium till death, but when I was 18, the broker who wrote the policy gave me a policy that lasts for 20 years, then the dividends on the policy continues to pay the premiums till death.
Yes, that’s how they sell it - after x years your dividends are enough to cover the premium plus you continue to gain cash value. Sounds very sweet. But you could have accumulated a lot more value in a regular investment because the life insurance company is piling on a lot of hidden fees.
the death benefit is the biggest value you will see .
the cash value is just an agreed upon refund that comes out of the company cash register if you decide not to hold the policy. it’s like a refund on an unused gym membership with charges for doing so
there is no such thing as a cash value account in your name . that is why when you die there is only the death benefit
Last edited by mathjak107; 03-14-2024 at 09:59 AM..
I agree, life insurance is for the beneficiaries should one die, not as a competitor for personal stocks. Personal stocks, while no premium fees, would not give beneficiaries a death benefit when one dies. So if person A dies with $10K of stock, that is what beneficiary inherits. If person B dies without stock but with $1M insurance, that is what beneficiary inherits.
Yes, that’s how they sell it - after x years your dividends are enough to cover the premium plus you continue to gain cash value. Sounds very sweet. But you could have accumulated a lot more value in a regular investment because the life insurance company is piling on a lot of hidden fees.
Too late in your case, but a warning for others.
Yes, in retrospect, I could of made more money, but what did I know at 18 years old. I was just proud of myself for even having Life insurance! lol
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,060 posts, read 7,493,946 times
Reputation: 9787
Quote:
Originally Posted by kbrkr
Yes, in retrospect, I could of made more money, but what did I know at 18 years old. I was just proud of myself for even having Life insurance! lol
water under the bridge.
bTdT.
Did you ever see an, ALWilliams presentation on Buy Term and Invest the Difference? I resisted for a couple of months and then rationalized that if the guy wanted to waste his time on LI, and I was going to say no, anyways, I could at least hear what he had to say. I also reasoned that new technologies only happen when people listen and learn why the technology will be transforming. At the time I was working in experimental broadband digital communications-which was about 10 years too early for early commercialization.
DS (38) still has the LI that we initially bought as a child rider and then converted to his own policy, $350,000 term at age 18, no income except for UGMA depletion to pay for college, "-the difference". It's been 22 years after the conversion, and he pays just $10 more in premium than in 2002. I own the policy-he pays. but he gets to choose the beneficiary.
Last edited by leastprime; 03-15-2024 at 11:51 AM..
My mother's body was cremated and place in a small wooden box and prayer cards printed for her. The cost of the church service was a minimum donation. She was buried in family plot was a family plot with a family tombstone - no cost, but we had to pay to have the grave dug. The 2018 cost was $7,000 in NJ.
If a person isn't cremated, a full size casket can cost up to $10,000, embalming and a funeral home showing are additional expenses. Then you have to purchase a plot of land, a tombstone and pay the grave diggers.
It adds up!
My mother died in March of 2020. Her funeral cost us $12K (in New Jersey) and there was no wake, just a 20-minute graveside service at which we were allowed to have 10 people, and that included her pastor and the funeral director (we had 9, since some family could not travel from other states).
In retrospect, I could have saved $800, the cost of embalming, but the funeral director was sitting at the kitchen table at 5 a.m. asking if I wanted her embalmed, and I said yes, thinking "why wouldn't I?" I'd been up since 2:30, when I found her dead, and I wasn't thinking clearly. Later, realizing we would have no visiting at the funeral home, I thought I should have said no. (Visiting was permissible with people having to wait outside and a few let in at a time, but with my mother being 91 and most of her friends around the same age and many of them in nursing homes, and people being discouraged from traveling at that time, we said forget it.)
I had one bouquet of flowers for her. My friend's daughter owned a florist and even though they had to close for the pandemic, she still had some flowers and made me a bouquet to put on the casket.
The funeral director sent me what my mother had done for my dad in 1999, with updated prices. Dad's casket, which my mother chose for him when I was there and she picked an especially nice one, was now $4500. I winced and said to the funeral director, "My mother was a frugal old Dutchwoman who might haunt me if I spent that to put her dead body in." The funeral director laughed and said, "How about the one your mother chose for your brother? That one is $1950." So that's what we used.
But even with no makeup/hair costs, no visitation, minimal funeral allowed by law at the time, it was still $12K. Had to open the grave (already had a plot where my father and brother were), transport the body, blah blah blah. It's really a racket.
I put the funeral on my credit card. Because the courts were closed, it would be months before we (one sister and I were co-executrices) could probate the will or get access to her bank accounts, and we had to do that by appointments at drive-up windows, wearing masks. However, we were able to file the life insurance policies and pay off the credit card in a relatively short time, given the circumstances.
Try not to die during a pandemic. It makes things difficult.
Did you ever see an, ALWilliams presentation on Buy Term and Invest the Difference? I resisted for a couple of months and then rationalized that if the guy wanted to waste his time on LI, and I was going to say no, anyways, I could at least hear what he had to say. I also reasoned that new technologies only happen when people listen and learn why the technology will be transforming. At the time I was working in experimental broadband digital communications-which was about 10 years too early for early commercialization.
DS (38) still has the LI that we initially bought as a child rider and then converted to his own policy, $350,000 term at age 18, no income except for UGMA depletion to pay for college, "-the difference". It's been 22 years after the conversion, and he pays just $10 more in premium than in 2002. I own the policy-he pays. but he gets to choose the beneficiary.
i doubt there has ever been a person who bought term and invested the difference….
no matter what they saved with term the money seeks its own level and it ends up being used somewhere else ..
usually if things aren’t forced they don’t happen .
here in a high cost of living area the higher home prices actually force a bigger percentage of income in them and so that ends up being a forced savings.
any savings not coming directly out of a check ain’t happening for most
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.
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.
. but he gets to choose the beneficiary.
