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Dec 2, 2021 - 7:21:28 AM
7418 posts since 9/5/2006

just bought more life insurance ,,just to be on the safe side.
boy what a pain ,,so much junk to go through,,but i don't want
to leave her with a bunch of mess to deal with financially so i bit the bullet.

Dec 2, 2021 - 8:40:34 AM

Texasbanjo (Moderator)

USA

26716 posts since 8/3/2003

That was a very mature, thoughtful, loving thing you did, thinking of your wife and family.

Dave and I both got term life insurance when our kids were small for "just in case". We paid on it until the kids were grown and out of the house. When we cashed it in, we only got a thousand for it but.... it was worth every penny we paid just to know there wouldn't be money problems if one of us should die early.

I would not buy term life again, if I had it to do over. I'd get whole life, but that's just me.

Dec 2, 2021 - 8:58:39 AM
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KCJones

USA

1557 posts since 8/30/2012

I've got a 3x salary policy from my employer provided at no cost. It'll pay off the mortgage and cover the first couple years of college for the kids. But I'm not a big fan of insurance in general, and probably wouldn't have it if it wasn't given to me for free.

My neighbor has a "whole life" policy, and is convinced that it will make them rich and let them retire early. I looked into that and feel bad for them. What a waste.

Dec 2, 2021 - 9:06:45 AM
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RB3

USA

1168 posts since 4/12/2004

I've always thought that "life insurance" is the greatest euphemism of all time; it's really death insurance.

Dec 2, 2021 - 1:50:57 PM
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BobbyE

USA

3005 posts since 11/29/2007

The idea and ideal with life insurance is that you buy it when you are young and have assets to protect but don't have enough resources to do so without life insurance. Whole life lets you pay more in the present when you're least likely to need it and then pay the same throughout the life of the policy, (the cost never goes up). As you age you acquire more resources and ideally you should need life insurance less and less and by the time your kids are grown and gone, your house is usually paid for, etc and thus the need for a large life insurance policy is not needed since you have available resources elsewhere. Term is by far the cheapest and can provide the most coverage when you need it but are least likely to die. It does go up as you age but again, you should be needing it less and less. A policy that will cover final costs at one's demise is not a bad thing but anyone thinking that insurance is an investment is wrong. Buy term and invest the difference between term and whole life into stocks and that is an investment. The cash value in a whole life policy is just money they return to you for overpaying all the years early on. And when you do cash it in your policy is canceled. I know there are different products out there that do this and that but that is the nuts and bolts on life insurance. Buy life insurance to protect your life, not for retirement or as a way to invest. It's not called life-insurance for nothing.

Bobby

Dec 2, 2021 - 2:12:52 PM

4505 posts since 12/6/2009

Life insurance; they bet you die and you bet you live and then you have to die to win

Dec 2, 2021 - 2:53:23 PM
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slammer

USA

3484 posts since 12/30/2008

It is DEATH insurance!!! Whole Life insurance was and is the biggest legalized scam there is with the most commissions going to your agent.
Ask your agent what happens to all the money in your “ savings acct. “ when you die.
Have you asked a wealthy person how they acquired their wealth? Have you ever heard ANYONE say …….Thank God I had that Whole Life policy???
Don’t ever confuse life insurance with an investment as it is NOT !!! The only person that will tell you it is is your agent!!!
Term life insurance is necessary when your young and have debt and a family. As you get older and less debt, there is not the same need.
Slammer!!!

Dec 2, 2021 - 2:56:07 PM

slammer

USA

3484 posts since 12/30/2008

Bobby E, we’re you by any chance a A.L.Williams crusader like I was at one time???
Your spot on !!!
Slammer!!!

Dec 2, 2021 - 5:34:04 PM
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12861 posts since 1/15/2005

I have never had life insurance for the same reasons many have already mentioned. I was fortunate to have made enough fairly early that by the time I could afford to buy it, I didn’t need it. I sure never thought it was a good investment for financial stability upon retirement. If I had bought it, it would have been term, knowing that it would never have any cash value.

I have taken the same approach with long term healthcare insurance. All of my friends whose parents had it basically gave up trying to collect, as the insurance companies just would not pay without going to court. If my wife or I, or both, have to go to assisted living. We would sell our house, which should provide us with at least 10 years of assisted living. We also have other savings that could be used.

Dec 3, 2021 - 6:19:22 AM
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BobbyE

USA

3005 posts since 11/29/2007

>>Bobby E, we’re you by any chance a A.L.Williams crusader like I was at one time??? Your spot on !!! Slammer!!!<<

Yes Dale I was; for about six months and I discovered I probably couldn't sell ice water to a hiker in the Sahara desert. I had a personal friend one time who was much older than me set me down early in my adult hood and tell me that someone else shouldn't care more about my money than me and that I needed to learn how money worked. I started doing a lot of reading on financial planning and investing and although I never got wealthy, I did learn some principles about money management that have served me well over the years. At least I like to think so.

Bobby

Dec 3, 2021 - 8:42:41 AM
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slammer

USA

3484 posts since 12/30/2008

I never made a dime either but certainly learned some good principles about finance and saving. I was and still am a believer in what I learned. I just didn’t have the ability to convince or “sell” others on the idea . I too applied what I learned and think I did OK for a guy with a humble beginning . Buy Term and invest in Banjos !!! LOL
Slammer!!!

Dec 3, 2021 - 9:07:29 AM
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12861 posts since 1/15/2005

quote:
Originally posted by BobbyE

>>Bobby E, we’re you by any chance a A.L.Williams crusader like I was at one time??? Your spot on !!! Slammer!!!<<

Yes Dale I was; for about six months and I discovered I probably couldn't sell ice water to a hiker in the Sahara desert. I had a personal friend one time who was much older than me set me down early in my adult hood and tell me that someone else shouldn't care more about my money than me and that I needed to learn how money worked. I started doing a lot of reading on financial planning and investing and although I never got wealthy, I did learn some principles about money management that have served me well over the years. At least I like to think so.

Bobby


Same here Bobby, as I was started early by mother, who was one of the most saavy and practical business people that I knew.  She grew up in an orphanage and never went to college but was extremely resourceful and learned so much about finance that college could never teach.  In her early years she worked for the local Savings and Loan and learned all about money and how to save and use it.

I'm not sure what Dave Ramsey's take is on whole life policies, but can guess.  I'm a pretty big Ramsey fan.

Dec 3, 2021 - 10:34:21 AM
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BobbyE

USA

3005 posts since 11/29/2007

>>I'm not sure what Dave Ramsey's take is on whole life policies, but can guess. I'm a pretty big Ramsey fan.<<

I think I read one of his books. In any case, I never read a book by a financial advisor that said buy whole life insurance policies. Makes no sense for a 30 year old male with three dependents to buy a whole life policy when he can get twice the coverage for half the premium by buying term, especially if he dies.

Bobby

Dec 3, 2021 - 3:53:04 PM

7418 posts since 9/5/2006

well i bought 50k policy in 1980,,, which at that time was a good chunk of money..for me anyway..but today not so much so i went and got another 50K just to make sure shes ok... it sure ain't cheap as it was then,,, thats for dang sure...
i figure since the house is paid off and we have few bills..that will hold her over till she finds another ,,,or sell out and move into a townhouse or something...

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