topic Re: life insurance in Community Chat

life insurance

Abrowneyegirl — Sat, 19 Jun 2021 15:47:48 GMT

Interesting conversation last night.

It was a beautiful day and there was a large group outside in the neighborhood talking and the topic of life insurance came up as there was a local tragedy where a young father was killed in a 1 car accident.

An older neighbor commented "I hope he had good life insurance..." to which the younger people (under 45) laughed as if she was joking.

Not one of the young professionals in the group had life insurance outside of what their employers offered them for free.

Most thought life or term life insurance when away with the dinosaurs.

Their thoughts are you self insure and the government provides the rest.

It was an interesting contrast as the 60+ folks all had insurance salespeople and reps in their day.

The thoughts were that nowadays since both parents work the surviving parent will continue to support the household and in the "old days" the women could not earn enough to support the family.

I personally do not think it is that easy, but it was enlightening.

Have you noticed this change in perception of life insurance?

Re: life insurance

occasionalrain — Sat, 19 Jun 2021 15:54:56 GMT

I don't think it prudent to be worth more to someone dead than alive.

Another consideration, if you are the beneficiary and the insured in murdered, you become the prime suspect.

Re: life insurance

4kitties — Sat, 19 Jun 2021 15:56:51 GMT

I am very friendly with my neighbors but have never discussed personal finances with them. So I do not know if they have life insurance or not.

I know my children do.

Re: life insurance

CelticCrafter — Sat, 19 Jun 2021 16:00:48 GMT

When we were first married we bought Whole Life policies. At the time we were dumb and didn't realize that meant we would be paying for it for our whole life.....

We took the cash value of it and converted it to a single premium policy.

The cash value bought us more than what the original policy benefit was.

Re: life insurance

Bri369 — Sat, 19 Jun 2021 16:04:07 GMT

@occasionalrain wrote:
I don't think it prudent to be worth more to someone dead than alive.

Another consideration, if you are the beneficiary and the insured in murdered, you become the prime suspect.

I care to think of it as not burdening them with debt.

No one is worth more dead. That's very sinister.

Re: life insurance

kaydee50 — Sat, 19 Jun 2021 16:05:49 GMT

Don't know if percerptions have changed but unless the employer's insurance is signficant, I don't think it's a good idea not to have a term life insurance policy enough to pay off the house, provide a college education for the kids and have some left over. And if both spouses are working they each should have adequate insurance.

What bothers me most is the seeming dependence on the government to provide any shortfall. IMO, people under 40 will be lucky to see any social security and they had best be prepared to provide for themselves.

Re: life insurance

occasionalrain — Sat, 19 Jun 2021 16:13:16 GMT

@Bri369 wrote:
@occasionalrain wrote:
I don't think it prudent to be worth more to someone dead than alive.

Another consideration, if you are the beneficiary and the insured in murdered, you become the prime suspect.
I care to think of it as not burdening them with debt.

No one is worth more dead. That's very sinister.

With more than half of marriages ending in divorce, many acrimonious, with fights over money and custody, murder is not that uncommon. Add in an insurance pay off and some will take the gamble.

Re: life insurance

Venezia — Sat, 19 Jun 2021 16:14:23 GMT

I think anyone with young children should have adequate life insurance. With the loss of one partner, everything becomes much more difficult and there are expenses that won't be covered by one person's salary, in most cases. I'm talking about the average person, not the uber-rich.

When it's only adults who can provide for themselves, I don't think life insurance is necessary. But there's never a "one size fits all" in these situations. So many things, unexpected health issues for example, that can crop up.

And many employers provide favorable terms for insurance coverage for their employees. (My previous employer did. For literally a few dollars a month I had $250,000 for both myself and my DH.) I think it's silly not to take advantage of that. You just never know!

Re: life insurance

patbz — Sat, 19 Jun 2021 16:17:26 GMT

When I retired at 63 I bought a term life insurance (until I'm 80) to ensure DH would be able to continue our lifestyle if I should precede him ( we earned equal incomes). This was a better option than taking a survivor benefit out of my Federal job pension. I'm now 77, and we are debt free so its nice that this $2000 annual payment goes away very soon.

Re: life insurance

Mom2Dogs — Sat, 19 Jun 2021 16:18:48 GMT

People that depend on the govenment (WHEN THEY CAN WORK) are a detriment to our society.

Yes, they should have term insurance, it is not expensive....a lot of people live beyond their means and if one spouse dies the other is left with massive debt and the loss of an income.

Re: life insurance

Abrowneyegirl — Sat, 19 Jun 2021 16:25:21 GMT

@kaydee50 wrote:
Don't know if percerptions have changed but unless the employer's insurance is signficant, I don't think it's a good idea not to have a term life insurance policy enough to pay off the house, provide a college education for the kids and have some left over. And if both spouses are working they each should have adequate insurance.

What bothers me most is the seeming dependence on the government to provide any shortfall. IMO, people under 40 will be lucky to see any social security and they had best be prepared to provide for themselves.

I agree 100%

I do not think younger people realize how dramatically their family's lives would change in an instant with the loss of a parent. It is not just financially it is an emotional situation as well.

As for the employer life insurance - both my DH and I both have a policy through our employers as a free benefit but those policies are very limiting as to when and what they cover. I WOULD never stake our financial livelihood on a free policy.

Re: life insurance

decaf — Sat, 19 Jun 2021 16:25:18 GMT

A while back I had a friend with two kids who had no means to support them if her husband died. She never even thought about that until she heard of aterrible story where a woman with children was left to struggle after her husband died, she was left with a pile of bills and was forced to sell her nice home, she couldn't afford it. They moved in with her parents.

Right there and then my friend insisted her husband buy life insurance. About six short months later her husband was on a business trip to Calif and died from a massive heart there. Her life would have taken a really terrible turn if they didn't have insurance.

I don't understand @Abrowneyegirl what your neighbors think by' the govt provides the rest'. Social security? Not anywhere near enough in today's economy.

Re: life insurance

lynne6was7 — Sat, 19 Jun 2021 18:35:16 GMT

A foolish mindset. They don't want to have to try to live on what Social Security might pay them. Next time you're all together, I hope you tell them that they should have level term insurance for a duration until their youngest is out of college (20 or 30 year term). They should have enough for funeral costs, mortgage repayment, college fund, plus enough to invest at an assumed 4% return to replace the insured's income. It will probably be $1-$2,000,000 term. At their age, it will be about $1 per $1,000 of death benefit, or $100 to $200 per month. And, even if a spouse's role is stay-at-home, they should be insured too; for the above reasons plus childcare costs rather than income replacement. They also need long term disability insurance as the likelihood of disability is three times the likelihood of death during working years. Group LTD coverage through an employer is very cost effective but often not taken - again, very foolish. You never want to have to use life or disability insurance. But, if your family needs it, you want it to be there.

Re: life insurance

suzyQ3 — Sat, 19 Jun 2021 18:50:54 GMT

@Mom2Dogs wrote:
People that depend on the govenment (WHEN THEY CAN WORK) are a detriment to our society.

Yes, they should have term insurance, it is not expensive....a lot of people live beyond their means and if one spouse dies the other is left with massive debt and the loss of an income.

@Mom2Dogs, we have social security and Medicare. And there is also survivor payments available. All comes from the government, and it is a blessing for everyone.

Would you do away with these programs? Or what is it that you don't believe in?

Re: life insurance

suzyQ3 — Sat, 19 Jun 2021 18:54:33 GMT

@kaydee50 wrote:
Don't know if percerptions have changed but unless the employer's insurance is signficant, I don't think it's a good idea not to have a term life insurance policy enough to pay off the house, provide a college education for the kids and have some left over. And if both spouses are working they each should have adequate insurance.

What bothers me most is the seeming dependence on the government to provide any shortfall. IMO, people under 40 will be lucky to see any social security and they had best be prepared to provide for themselves.

@kaydee50, the demise of SS has been discussed probably since its inception. It's had its enemys since day one, along with Medicare. So far they both ae still up and running.

Re: life insurance

CatsyCline — Sat, 19 Jun 2021 19:09:39 GMT

when i was in my 20s i worked with a woman who was close to retirement. She had taken her own SBLI policy for a $5000 death benefit. She said - i'm only covering what it will cost to bury me. i don't want him out partying on a big payout should i die before he does.

Re: life insurance

hckynut — Sat, 19 Jun 2021 19:19:54 GMT

Since the only kids I have are furry and have 4 legs? My policy is enough to take care of left over business when I die. We have no children by choice, thus I can only speculate on what i would do, for adult children.

Nothing when it comes to putting $$$$ in their accounts. Whatever they have or have not accomplished in their lives should suffice.

They would have memories, disconnected from $$$$, and those would be how big a part of their lives I was in showing them the paths to Independence.That was how I was raised and that was/is my life after my mother died in 1969.

She left no $$$ because she had none. She had some valuable hand made wooden tables and serving cart her mother left to her when she died.

Those went to my 3 older sisters because they wanted them. My mothers wedding rings were passed on to my oldest sister, who died at 91 in 2018, past them on to my only remaining sister, who will soon be 88.

Just my thoughts along with a segment of my life's story, little to do with Life(I refer to as death)Insurance.

hckynut

Re: life insurance

Kalli — Sat, 19 Jun 2021 19:17:56 GMT

My dad was an insurance agent from the late 1960s until the late 1980s. I remember him telling his young married clients that they should get life insurance once they became parents. If both were working and they didn't have children, he often advised them to wait depending on their situation of course.

I'm not sure what his advice on this topic would be today.

Re: life insurance

Mom2Dogs — Sat, 19 Jun 2021 19:23:03 GMT

@suzyQ3 I was referring to people that expect the goverment to pay their way... when they run into trouble. Famiies should learn to live on a budget....what is what DH and I have done all our married life.

Yes we have Medicare and SS..I payed into those programs, and yes I am aware we generally get more from those programs than we paid into.

Social security was available to my brother and sister when their father was killed in action, for which my mother was very grateful for....her husband paid the ultimate sacrifice

My point was if the younger generation the OP was referring to expected the goverment to help them because they did not want to purchase life insurance, incase of a death, is wrong.

Re: life insurance

Abrowneyegirl — Sat, 19 Jun 2021 21:37:13 GMT

@lynne6was7

While your advice is true and sound I would NEVER advise my neighbors or anyone else on how to spend their money unless asked. Even if asked I remember people do their own research and make their own decisions based on their own needs.

It's not as if these people have not heard of life insurance and term life, most admitted their parents had/have such policies. They just think it is an outdated concept.