Should the elderly have life insurance? (parents & "third party contact")

[Anonymous]

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do the math- my 80 year old mom has a measly $80k policy where she pays like $100 per month toward. Even if she were to live to some ridiculously old age it’s still a good return on her investment to keep paying at this point. So it really depends on how much they’d pay and their life expectancy (and if they can afford the premiums). In the long run they may be paying $200k for a $500k return or something similar.

This is uninformed advice.

Are the life policies with a mutual or a stock life insurance company ?

What does it matter whether the policies are from a mutual or stock company?

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

Term life insurance is very cheap when you're young. It becomes prohibitively expensive when you get old (or they won't write it at all). Your term is probably running out in the next couple years and you won't be able to get anything close to $50 a month at 75 or 80.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

PP wasn't saying all life insurance is bad. She was saying WHOLE life insurance is a bad deal and it is, and it sure as heck isn't $50/month.

We have term life insurance that will end shortly after our youngest finishes college. At that point our home will be paid off and we will have about $4-6M (market depending) saved which would be plenty for a surviving spouse in their mid 50's who is still working to retire on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

Term life insurance is very cheap when you're young. It becomes prohibitively expensive when you get old (or they won't write it at all). Your term is probably running out in the next couple years and you won't be able to get anything close to $50 a month at 75 or 80.

I would pay up $200 month then I’m in my 70s still free money

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

if it’s $50 a month, it’s a term policy and when the term ends, it will be a massive monthly amount then.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

if it’s $50 a month, it’s a term policy and when the term ends, it will be a massive monthly amount then.

I had a 500000 policy at 320 a year from 30 to 50. At 50 it quadrupled. The tax incentive is not there now either since there is a 12 mill estate exemption.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

Term life insurance is very cheap when you're young. It becomes prohibitively expensive when you get old (or they won't write it at all). Your term is probably running out in the next couple years and you won't be able to get anything close to $50 a month at 75 or 80.

I would pay up $200 month then I’m in my 70s still free money

Lol, 200 for what? 50k policy? It is simple math. In our 70s the chances of us dying over the next 20 years is close to 100 percent. So if we want a standard 20 year policy for 500k at that age the insurance would charge us $2,000 a month just to break even. And they are not in the business of breaking even

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

Term life insurance is very cheap when you're young. It becomes prohibitively expensive when you get old (or they won't write it at all). Your term is probably running out in the next couple years and you won't be able to get anything close to $50 a month at 75 or 80.

I would pay up $200 month then I’m in my 70s still free money

No insurance company is going to write a $500k policy on a 70 year old for $200 a month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. Life insurance is to replace income that someone else depends on. Also this sounds like a whole life policy which is always a bad financial deal.

I would never understand why someone doesn’t have life issuance. We have our house paid off since 2012, and we still have life issuance since 2000 when we were 50 years old. It’s only like $50 dollars a month it’s pocket change …
one of us will get 500K one of us dies Tax free. If we die together then our daughter gets the money, if we outlived her then our grand daughter or if we were past 120 something than our future great grand children will get it

if it’s $50 a month, it’s a term policy and when the term ends, it will be a massive monthly amount then.

I had a 500000 policy at 320 a year from 30 to 50. At 50 it quadrupled. The tax incentive is not there now either since there is a 12 mill estate exemption.

I had 1 mil at 400 for 20 years. When the term ended the premium went to 1500. I paid for a year. Next year it went to 3500 so I dropped it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do the math- my 80 year old mom has a measly $80k policy where she pays like $100 per month toward. Even if she were to live to some ridiculously old age it’s still a good return on her investment to keep paying at this point. So it really depends on how much they’d pay and their life expectancy (and if they can afford the premiums). In the long run they may be paying $200k for a $500k return or something similar.

This is uninformed advice.

Are the life policies with a mutual or a stock life insurance company ?

What does it matter whether the policies are from a mutual or stock company?

It must matter to her since she asked the question 20 times, lol.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Do the math- my 80 year old mom has a measly $80k policy where she pays like $100 per month toward. Even if she were to live to some ridiculously old age it’s still a good return on her investment to keep paying at this point. So it really depends on how much they’d pay and their life expectancy (and if they can afford the premiums). In the long run they may be paying $200k for a $500k return or something similar.

This is uninformed advice.

Are the life policies with a mutual or a stock life insurance company ?

What does it matter whether the policies are from a mutual or stock company?

It must matter to her since she asked the question 20 times, lol.

But then won't say why!

[Anonymous]

My parents have whole life policies although I can't imagine the payout if big. My dad just retired at 70 and my mom has only ever had minimum wage type jobs so I imagine he wanted to make sure she would be taken care of if he dies first. He's also tried to tell me it's kind of like having an investment although I don't really get it. when shopping for life insurance year ago, I took one look at the price tag for whole life and went straight to term.

[Anonymous]

Anonymous wrote:My parents have whole life policies although I can't imagine the payout if big. My dad just retired at 70 and my mom has only ever had minimum wage type jobs so I imagine he wanted to make sure she would be taken care of if he dies first. He's also tried to tell me it's kind of like having an investment although I don't really get it. when shopping for life insurance year ago, I took one look at the price tag for whole life and went straight to term.

It is kind of like an investment, with crappy returns.

[Anonymous]

Whole life is a tax minimizing tool for wealthy. Not much more