Posted on 02/18/2020 11:10:16 AM PST by Chickensoup
Your kids are going to outlive you. If not sell your property or get a reverse mortgage.
Doesn't sound like a very good one.
My folks too - and still have it.
It was Whole Life (not term). There are pros and cons. So I still have those Whole Life policies, and then also Term coverage on myself.
I should have bought WL for my kids - maybe I still should (in their 20’s). Obviously, once I got married, the benefits got changed over to my wife.
Thank you for making so much sense, clear and concise.
Do you have long term care insurance? Maybe you should start there. My parents just needed to move into an assisted living facility. Their long term care policy is fully covering those expenses. If my siblings and I had to cover those, we’d be SOL.
My dad told me to hang on to the insurance if possible.
“Yeah - I went through some rough times and cashed out my insurance. But that rough time was short-lived. I should have taken out a loan to get through it, rather than cashing in a growing investment.”
Take out insurance on one then take him/her out hunting or fishing.............just a thought.
cannot afford it, 4 to 600 per month
cannot afford it, 4 to 600 per month
The policy gives me some options (and my family).
1) If I die, my wife gets 310k tax free (250k + accumulated value of 60k) TAX FREE! (I also have 1mm policy TERM).
2) It has accumulated wealth and I could cash out NOW and get 60k (taxable)....so if I get a divorce I can either name a new beneficary or buy something stupid with 60k.
3) Also, it has accumulated enough value that its own dividends cover the premium (i don't pay anymore).
4) Also, I can borrow against its cash value of $60k (albeit at a rape-level rate of 8%)....but hey, credit is there!
Basically, it gives me OPTIONS. I dont need the money, I love my wife, and I don't plan on dying so I'll just let it grow for her.
I also bought a 1mm term policy from United Healthcare. Wife gets a flat 1mm from that policy TAX FREE, but I can't borrow against it and cant cash it in. Its for only when I croak.
As for my kids, I purchased the same policy for them. 250k whole 65-life. Still paying premiums on those! No one wants their kids to die, but we do buy them insurance for giving them OPTIONS. Its simply an investment option for their future spouses and will give them borrowing options in a couple of decades such as buying a house or for college if tough times hits.
Hope this helps.
From your post it seems like you need some sort of trust set up for you and maybe an annuity if you are suitable for it (I hate annuities and can do the same with different types of securities). Buying insurance for your kids to benefit you? You'll have to see if such a product exists and, again, if it is suitable for both your kids and you.
Take care.
Ick.
I love them. It is the uncertain future.
Thats why you have a $2000.00 lunch with your trust attorney, CPA, insurance agent, and registered rep (series 7) at some point in your life.
It will be the best couple of thousand you'll ever spend. The trust will be a legal instrument that attests to why you are setting up a trust, insurance policies, UGMA accounts, etc.
Its still not to late. If they exercise, have low bmi, and don't smoke, it will still be cheap. Better now to provide them with proof of insurability than not IMHO.
I got policies for my kids as soon as I got their Social Security numbers.
Yes.
For instance:
If you have co-signed for a college loan your child’s death does not make it go away. Many a sad story of parents having the pain of a child’s death amplified by being stuck with their death.
Do what is right for you.
Yes....most LTC policies have a 90 day lockout so get some short term care too. My LTC policy is like 6k a month and growing as I we but only for 9 years. I doubt I’ll last 9 years disabled (and hope to not be). Wifes LTC policy is dirt cheap because shes younger and thinner. Sorry no pics.
Gosh I never even thought of that one, poor parents.
Thanks. NWL is my company too.
I’ll never forget when I got married and went to see my brother’s friend to get more. He was a real big shot. We met at his big fancy home on the lake. He spent a LONG time with us.
I thanked him for explaining it to us and thanked him (and apologized) for how much time he spent with us just to sell some young newlyweds a small policy.
“Well - I’m counting on you doing well, and coming back and buying BIG, expensive policies as you get older!”
I did get another one when our first child was born. Sadly, he died shortly after that on one of his expensive toys. He was a nice guy (young - maybe 50 when he died?), Type A in both work and play.
Small policy in each of them basically to cover funeral expenses if god forbid something would happen
I had policies through work on my kids up until they became adults and moved out. They weren’t large policies - just enough to cover the cost of a good funeral without impacting our ability to provide for the other kids. They also were dirt cheap. We only carried (and still do) “serious” levels of coverage on ourselves as providers.
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