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beachgirl
LIF Adult
Member since 7/05 7967 total posts
Name:
sara
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Term Life Insurance Q.
Hi,
DH and I have no life insurance but plan on getting some this week...I am a little confused as I thought we were going to get term life insurance but then our accountant said during the week that a mix of term and whole life is recommended - we couldnt get into it with him as we had to leave and he just threw this out there as our appointment was ending.
Any advice?
TIA
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Posted 4/16/07 10:55 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Term Life Insurance Q.
I just read this book- Total money make over
and he says to just get term life- and invest the rest on your own and you would do better
I highly recommend the book- we almost bought a term and whole life policy for $400 a month- and I am glad we canceld at the last minute
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| Posted 4/16/07 10:58 AM |
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Smileyd17
kids
Member since 5/05 20997 total posts
Name:
Mommy
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Re: Term Life Insurance Q.
Term Ins is exactly what its stating, its term for 5,10,20,or 30yrs.
You pay a premium (for term of pol) and basically that is it. Cheaper premium.
So the recommendation for a mixutre is something that will benefit you since a whole life pol collects cash value. It adds protection as well as some financial protection. Its also more money.
You can Fm me if you'd like for some further assistance.
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| Posted 4/16/07 11:00 AM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: Term Life Insurance Q.
Posted by Beth1210
I just read this book- Total money make over
and he says to just get term life- and invest the rest on your own and you would do better
I highly recommend the book- we almost bought a term and whole life policy for $400 a month- and I am glad we canceld at the last minute
Couldn't agree more. I used to have both brokerage and life insurance licenses (I worked for a bank through college and law school). Many people may disagree, but I believe that insurance is not an investment product, that you can, and studies have shown, will do better faithfully investing your money else where. The fees involved in insurance are astronomical. I believe that insurance is really only necessary to manage a risk. That said term is cheap and an easy way to go. I have a term policy on my husband for what I would need to cover my mortgage and for my children's schooling. We will completely phase out this insurance in the next ten years or so, as the need will no longer exist (mortgage will be paid and education funded). However, we do faithfully invest, in both funds and individual stocks.
HTH
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| Posted 4/16/07 11:06 AM |
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MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
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Re: Term Life Insurance Q.
I agree with the above. We are getting term for the kid and more immediate need, if something should happen. We have investments for the long term and contribute to that regularly.
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| Posted 4/16/07 11:14 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Term Life Insurance Q.
Term isn't always the answer. You may still have a need for life insurance after 20 or 30 years and you may no longer be insurable or the rates my be too high. There are 3 things to consider when choosing insurance....
Premium
Death benifit
cash value
Choose two and you can decide from there what may be the best insurance. There is also varible universal and universal which are permanent insurances but cheaper then whole. The whole premise of buy term and invest the difference of premiums is great but most people are not that disciplined with their money and don’t actually do that. And, again, you also have the possibility of still needing insurance after the term insurance ends. FM me if you have any questions.
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| Posted 4/16/07 11:27 AM |
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MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
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Re: Term Life Insurance Q.
Posted by shamrock124
Term isn't always the answer. You may still have a need for life insurance after 20 or 30 years and you may no longer be insurable or the rates my be too high. There are 3 things to consider when choosing insurance....
Premium
Death benifit
cash value
Choose two and you can decide from there what may be the best insurance. There is also varible universal and universal which are permanent insurances but cheaper then whole. The whole premise of buy term and invest the difference of premiums is great but most people are not that disciplined with their money and don’t actually do that. And, again, you also have the possibility of still needing insurance after the term insurance ends. FM me if you have any questions.
This is why DH and I went whole life. I wanted to be able to pay the premium of a 27 year old for the rest of my life than probably have to renew at 47 after my term was up at a much higher rate. I also am not disciplined enough to invest the difference in premiums.
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| Posted 4/16/07 11:29 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Term Life Insurance Q.
Posted by MikesWife
Posted by shamrock124
Term isn't always the answer. You may still have a need for life insurance after 20 or 30 years and you may no longer be insurable or the rates my be too high. There are 3 things to consider when choosing insurance....
Premium
Death benifit
cash value
Choose two and you can decide from there what may be the best insurance. There is also varible universal and universal which are permanent insurances but cheaper then whole. The whole premise of buy term and invest the difference of premiums is great but most people are not that disciplined with their money and don’t actually do that. And, again, you also have the possibility of still needing insurance after the term insurance ends. FM me if you have any questions.
This is why DH and I went whole life. I wanted to be able to pay the premium of a 27 year old for the rest of my life than probably have to renew at 47 after my term was up at a much higher rate. I also am not disciplined enough to invest the difference in premiums.
You can also use the cash value as tax free, non reportable income that can aid in retirement years.
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| Posted 4/16/07 11:34 AM |
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MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
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Re: Term Life Insurance Q.
Posted by shamrock124
Posted by MikesWife
Posted by shamrock124
Term isn't always the answer. You may still have a need for life insurance after 20 or 30 years and you may no longer be insurable or the rates my be too high. There are 3 things to consider when choosing insurance....
Premium
Death benifit
cash value
Choose two and you can decide from there what may be the best insurance. There is also varible universal and universal which are permanent insurances but cheaper then whole. The whole premise of buy term and invest the difference of premiums is great but most people are not that disciplined with their money and don’t actually do that. And, again, you also have the possibility of still needing insurance after the term insurance ends. FM me if you have any questions.
This is why DH and I went whole life. I wanted to be able to pay the premium of a 27 year old for the rest of my life than probably have to renew at 47 after my term was up at a much higher rate. I also am not disciplined enough to invest the difference in premiums.
You can also use the cash value as tax free, non reportable income that can aid in retirement years.
Plus, after a certain amount of years, I believe the "dividends" start paying the premiums for you, no?
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| Posted 4/16/07 11:38 AM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Term Life Insurance Q.
Posted by MikesWife
Plus, after a certain amount of years, I believe the "dividends" start paying the premiums for you, no?
Yes, that can and does happen. Check you policy for the illustration or have a reprojection done to give you an idea of what year this will happen in.
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| Posted 4/16/07 11:39 AM |
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beachgirl
LIF Adult
Member since 7/05 7967 total posts
Name:
sara
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Re: Term Life Insurance Q.
Thank you all SO much for the replies..I am definitely going to get this sorted this week.
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| Posted 4/16/07 10:04 PM |
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