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Forum
-> Household Management
-> Finances
ValleyMom
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Tue, Oct 03 2017, 1:51 am
You MUST have life insurance policies in place for both parents.
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amother
Pink
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Tue, Oct 03 2017, 3:35 am
Sorry to sound stupid but totally clueless about this. No kids yet but still something would love to think about in the near future.
What is term and what is the other kind and how much is normal to pay for 2 healthy people in their mid 20s
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amother
Blue
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Tue, Oct 03 2017, 7:28 am
full life means that it applies until you die whenever that is, while term is only for a specific amount of time like 30 years from when you get it. Most people say term is a better choice if your concern is supporting your family because when you are lets say 80 you shouldn't have to worry about supporting your kids who are hopefully out of the house. My family got me life as an "investment". If I could sell it and get term I would but unfortunately in my case it would be complicated...
Hope that helps.
I can't answer your other question because I have life and my dh is considered "overweight" possibly morbidly obese because of his built so we have to pay more then normal.
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amother
Aquamarine
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Tue, Oct 03 2017, 10:24 am
Once you decide the amount of the policy you want to get, where do you go from there, and what are the most important factors to consider when choosing? I know I should have a policy, but it's so overwhelming with so many different brokers who may or may not be majorly overcharging me, and so many different companies with different ratings, products, costs, etc.?
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amother
Tangerine
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Tue, Oct 03 2017, 11:12 am
Husband has term, got it when he was 26, pays about $300. A year (Non smoker, but BMI not great at all) one million dollar policy, 2 kids. He's in kollel btw but this expense was non-negotiable. Originally I felt was unnecessary but now I see what a chesed it is for me and I appreciate that he makes it a priority.
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amother
Denim
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Tue, Oct 03 2017, 11:29 am
amother wrote: | Where I live, you can get critical illness insurance on your mortgage from the bank. In the event of a serious diagnosis, the outstanding amount of your mortgage is cancelled. I know several people who have r''l used this insurance. |
thanks. never heard of this before and will definitely look into it.
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HonesttoGod
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Tue, Oct 03 2017, 11:56 am
ValleyMom wrote: | Getting life insurance for both mother and father is mandatory.
I do not understand how people think this is optional.
It's devastating to lose a spouse but the tragedy is exacerbated when the surviving spouse is left destitute.
If you consider yourselves responsible adults you MUST get life insurance- especially as newlyweds- young & healthy.. before your health starts to change. |
This.
It should be up in the same category as rent. I.e. Mandatory.
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icebreaker
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Tue, Oct 03 2017, 12:07 pm
No longer married but yes, I do. So does my ex.
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33055
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Tue, Oct 03 2017, 3:36 pm
HonesttoGod wrote: | This.
It should be up in the same category as rent. I.e. Mandatory. |
Life insurance is definitely NOT mandatory. Life insurance is often not a good investment for the consumer. It is great for the salesman and broker. The commissions are extremely high.
If you are disciplined and can put away the premiums paid and invest the money, you will do much better off on your own. There used to be amazing tax benefits in the early 80s which non- insurance investments couldn't compete. Those are long gone.
Each family needs to do a cost benifit analysis. The life insurance companies do and the odds are strongly in favor of the insurance companies. That's how they can have those big beautiful buildings and pay high commissions.
Obviously, if someone dies substantially before their life expectancy, this investment pays off. Most people don't.
I only like life insurance in limited cases.
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mha3484
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Tue, Oct 03 2017, 3:40 pm
I think for a middle income person it can be a vehicle for leaving your children a yerusha. My father has policies with his adult children as the beneficiaries. He is of modest means but he can pay the monthly premiums. I think he told me a few years ago that each policy is low six figures. He would never be able to save the equivalent amount in cash.
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33055
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Tue, Oct 03 2017, 3:55 pm
mha3484 wrote: | I think for a middle income person it can be a vehicle for leaving your children a yerusha. My father has policies with his adult children as the beneficiaries. He is of modest means but he can pay the monthly premiums. I think he told me a few years ago that each policy is low six figures. He would never be able to save the equivalent amount in cash. |
I have a friend in a similar situation only she is low income She pays several hundred dollars a month to leave a yerusha to her adult kids. She has a large family, so each one is ending up with less than ten thousand. Meanwhile, their mother struggled for decades to pay this. Her life expectancy is measured in decades at this point.
She works two jobs, lives frugally, and has nothing saved.
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tichellady
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Tue, Oct 03 2017, 7:17 pm
Squishy wrote: | Life insurance is definitely NOT mandatory. Life insurance is often not a good investment for the consumer. It is great for the salesman and broker. The commissions are extremely high.
If you are disciplined and can put away the premiums paid and invest the money, you will do much better off on your own. There used to be amazing tax benefits in the early 80s which non- insurance investments couldn't compete. Those are long gone.
Each family needs to do a cost benifit analysis. The life insurance companies do and the odds are strongly in favor of the insurance companies. That's how they can have those big beautiful buildings and pay high commissions.
Obviously, if someone dies substantially before their life expectancy, this investment pays off. Most people don't.
I only like life insurance in limited cases. |
You are talking about whole life insurance. Term is much cheaper and the amount you are spending on it is not likely to amount to that much even if invested well. We have a combination of term and whole ( only got some whole because we were nervous about not being able to afford a new term plan in our 40s and still needing life insurance)
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33055
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Tue, Oct 03 2017, 9:28 pm
tichellady wrote: | You are talking about whole life insurance. Term is much cheaper and the amount you are spending on it is not likely to amount to that much even if invested well. We have a combination of term and whole ( only got some whole because we were nervous about not being able to afford a new term plan in our 40s and still needing life insurance) |
The bet is ALWAYS ALWAYS ALWAYS in favor of the house. Plus, the insurance company has those ridiculous commissions to pay out.
There are situations where insurance makes sense, but it is far from mandatory.
Social Security pays survivor benefits up to $1880 per month per child depending on the decedent parent's earnings. 2 children gets you $45,120 per year from Uncle Sam. Rates go down for the third kid. This could $ could paid be up to 19 years old if the child is still in HS.
The surviving spouse gets benefits.
One needs to calculate the odds of one dying and take into account government payments YOUR children and spouse are entitled to before deciding insurance is necessary.
Everyone should speak to an attorney knowledgeable about this or a financial planner who is not on commission. I would be doubly cautious trading in a policy for a different one because of those commissions.
Don't take my word for this. Double check everything I am saying.
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