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Life Insurance (Invest or Not)
10-16-2017, 06:47 PM
Gentlemen -
Do any of you (preferably self employed) have life insurance coverage?
Thinking of purchasing some term + whole life. I believe when someone dies, people should not mourn they should celebrate. Someone should benefit off your death instead of leaving behind only bills.
Again, this is purely theoretical. If you live a long life, it could be a waste of money. Thoughts?
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Life Insurance (Invest or Not)
10-16-2017, 11:35 PM
This is my mind as well, but I don't know what to do. I guess I should meet an insurance broker next time I'm in North America, but I'd like to understand it independently beforehand.
It's a complicated topic and I know you can use insurance to offset taxes and some insurance generates an investment return, etc.
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Life Insurance (Invest or Not)
10-17-2017, 05:27 AM
If you have a wife or kids, or others that depend on your income, then life insurance is a good thing. Otherwise, why get it?
But get term rather than whole. Whole claims to be an investment vehicle but is more expensive.
Two considerations when getting life insurance. First, eventually as you age it will get more difficult to get a policy or to increase, because they'll do a medical exam. If you have been hospitalized or your family has a poor medical history, it will be expensive for you. So there is a benefit to getting while you are young provided it is renewable without a medical exam. Second, you might want more than you think you'll need. My salary has tripled in the past 15 years when I first got mine.
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Life Insurance (Invest or Not)
10-17-2017, 10:28 AM
Term is short-term, though. Good for like 20-30 years. I can see it working if you're around ~50
They say to get both in case for assurance. Term is for "accidental" death while whole is for when you die of old age etc.
The quote I'm receiving for both term and whole is going to run me $3840/YR. In my late 20's now. Across the next 50 years that's about $192,000 spent for a $400K policy. The ROI is not so bad, but I would rather not bleed that cash. That's what cashflow is good for in business. Planning on leaving behind multi-millions for my offspring through actual income made.
Which is the better route to take?
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Life Insurance (Invest or Not)
10-17-2017, 04:19 PM
Discipline is the key here.
Term insurance and "invest the rest" (what you would have additional to put in for the whole life) works if you stick to it. Invest more when you can in a tax deferred vehicle, less when you can't, but keep paying the term premiums for the amount of coverage you need.
This strategy offers lower fees and the flexibility of not being locked into a whole life premium.
Those who are looking at the investment opportunities of a whole life policy should know that that there are way less investment choices in those type of policies.
- Clint Barton
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Life Insurance (Invest or Not)
10-17-2017, 05:01 PM
Just buy real estate.
While you live, you collect the rental profits.
If you pass away, your wife can either sell it and get a payout, or continue to manage it if she's still of sound mind and body and would like to.
Infinite payout.
Alternatively, if she's not of sound mind and body but the property/properties is/are still providing a solid yield, one of your children can then run it and use the funds to help take care of the younger children and your widow, in perpetuity.
That said, accidental death and dismemberment policies are fine, if only for peace of mind. The other kind, I'm not really a fan of.
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Life Insurance (Invest or Not)
10-18-2017, 02:07 AM
Sweet Jesus. I just went to dinner with some jackasses trying to sell me financial shit. Life insurance was their big product. Every other word was "the product." A product is something I can pick up and hit you with , not this bullshit.
Aloha!
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Life Insurance (Invest or Not)
10-18-2017, 05:15 AM
whole life insurance has lucrative commissions so they push it as an investment.
but will the insurance company be he 30 years from now?
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Life Insurance (Invest or Not)
10-18-2017, 08:11 AM
Disability insurance is very important. I think it's more important than life insurance if you don't have dependents.
- Clint Barton