Life Insurance for mid-50s

[Anonymous]

My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

[Anonymous]

What are you insuring for? Kids? Mortgage? Likely you may not need much insurance at all at 50+

[Anonymous]

Do you need big payouts if someone dies?

Do you both work or is there a SAH spouse?

Do you have a big mortgage and wouldn't downsize if widowed?

Age of kids? College tuitions funded?

Social security anticipated?

Amount of consumer debt you have?

Can you get cheaper term through work?

Read a personal finance book or get other quotes before buying this insurance.

[Anonymous]

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

They are typical of financial advisors that are taking their clients for a ride.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

They are typical of financial advisors that are taking their clients for a ride.

OP here. So, are you saying that an honest financial advisor likely wouldn't recommend such a policy at all?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

They are typical of financial advisors that are taking their clients for a ride.

OP here. So, are you saying that an honest financial advisor likely wouldn't recommend such a policy at all?

As it them point blank if they are a fiduciary.

Are they fee only? You can find one here: https://www.napfa.org/find-an-advisor

https://money.usnews.com/financial-advisors/articles/what-is-a-fee-only-financial-planner

How is your advisor getting paid? Are these whole life policies — they have so many fees and poor performance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

They are typical of financial advisors that are taking their clients for a ride.

OP here. So, are you saying that an honest financial advisor likely wouldn't recommend such a policy at all?

I can’t say it would never be recommended, but pushing expensive whole life insurance plans has been a hustle for the financial advisory industry for awhile now. Google it a bit, you will find the info easily.

[Anonymous]

We are mid 50s and will let our term life insurance expire in a couple years. Our kids are in college, which is fully funded, and we have significant savings. We have no need for this insurance anymore.

Why does this advisor think you need life insurance at this point? It is usually for young kids or to support a spouse that isn’t working (or someone else that depends on your income).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

They are typical of financial advisors that are taking their clients for a ride.

OP here. So, are you saying that an honest financial advisor likely wouldn't recommend such a policy at all?

I can’t say it would never be recommended, but pushing expensive whole life insurance plans has been a hustle for the financial advisory industry for awhile now. Google it a bit, you will find the info easily.

It is a 20 year term life insurance policy

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

They are typical of financial advisors that are taking their clients for a ride.

OP here. So, are you saying that an honest financial advisor likely wouldn't recommend such a policy at all?

I can’t say it would never be recommended, but pushing expensive whole life insurance plans has been a hustle for the financial advisory industry for awhile now. Google it a bit, you will find the info easily.

It is a 20 year term life insurance policy

But what’s the point of it? Read all the questions listed above. Do ANY of them apply to you?

I’m single with two middle schoolers. I’ve got a mortgage and years of college ahead of me. My life insurance would be used to financially support my kids if I’m gone.

What life circumstances is your financial advisor pointing to that justifies the policies?

[Anonymous]

I definitely wouldn’t get a 20 year term policy in your 50s. Life insurance gets very expensive past 65 or so. You could maybe get a 10 year policy if you really need it but it is an open question whether you need it all.

Would be careful about advice from this guy in general based on this recc.

[Anonymous]

20 year level term is 20 year level term. It does not get more expensive over the 20 years, counter to what 21:53 says.

The real question is do you need it?

What expenses do you need to cover?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

They are typical of financial advisors that are taking their clients for a ride.

OP here. So, are you saying that an honest financial advisor likely wouldn't recommend such a policy at all?

I can’t say it would never be recommended, but pushing expensive whole life insurance plans has been a hustle for the financial advisory industry for awhile now. Google it a bit, you will find the info easily.

Lol, A+ response - just perfect! The people who scream reflexively that life insurance or financial advisors are scams don't have the inclination/ability to read or understand basic details (in this case term vs. whole life). I'm not even in that industry (though I work in sales and understand the nature of those roles and their challenges), and I'm so sick of hearing people bash financial advisors. If you don't need their services, don't use them - simple as that! But the fact that one can easily change the oil in one's own car doesn't make the existence of Jiffy Lube a scam.

To the OP's question, it would be fairly difficult for an advisor to scam you with term policies. The primary way would be to recommend much more coverage than you need, but you can probably assess whether the amounts are reasonable. Also, I'm pretty sure you can reduce coverage down the road if you no longer need it (e.g., dropping from $2M to $1M of coverage in five years if the situation warrants it).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My husband and I started working with an hourly-based financial advisor outside of our area with an interest in getting help with cash flow issues. We have spent the first few months working with this advisor on getting new life insurance policies and the policies this advisor are recommending for us are so expensive. We went to the advisor with a goal of getting help with our cash flow and now we are unexpectedly down a lot of money on these new life insurance policies (if we move forward with the recommended policies).

Are expensive term life insurance policies typical for those in their mid-50s?

They are typical of financial advisors that are taking their clients for a ride.

OP here. So, are you saying that an honest financial advisor likely wouldn't recommend such a policy at all?

I can’t say it would never be recommended, but pushing expensive whole life insurance plans has been a hustle for the financial advisory industry for awhile now. Google it a bit, you will find the info easily.

Lol, A+ response - just perfect! The people who scream reflexively that life insurance or financial advisors are scams don't have the inclination/ability to read or understand basic details (in this case term vs. whole life). I'm not even in that industry (though I work in sales and understand the nature of those roles and their challenges), and I'm so sick of hearing people bash financial advisors. If you don't need their services, don't use them - simple as that! But the fact that one can easily change the oil in one's own car doesn't make the existence of Jiffy Lube a scam.

To the OP's question, it would be fairly difficult for an advisor to scam you with term policies. The primary way would be to recommend much more coverage than you need, but you can probably assess whether the amounts are reasonable. Also, I'm pretty sure you can reduce coverage down the road if you no longer need it (e.g., dropping from $2M to $1M of coverage in five years if the situation warrants it).

For “not even (being) in that industry” you are extremely triggered by this. Tell us where the financial advisor critics hurt you.

[Anonymous]

We have an advisor and he suggested getting term life back when we were mid 30s, and had young kids and a mortgage. However, he just suggested we do it, and didn't point us to any vendors. I chose a vendor on my own, so he didn't get any kickback from it, that's for sure.

20year term life if you're in mid-50s is going to be super high. The avg life expectancy in the US is 76 years, so there's a high chance the insurer may have to pay out before the term expires.

If you really need it, get 10 year term instead.