Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Role of life insurance
Old 12-06-2005, 07:16 AM   #61
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Role of life insurance

So what are you going to do to protect yourself from yourself when you might become less competent? Rely on your kids to figure it out? What if you have no kids?

I am not sure I would want to have a trust controlled by a third party trustee while my spouse and I are still living.

The problem is that incompetence sneaks up on you.
__________________

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Role of life insurance
Old 12-06-2005, 08:10 AM   #62
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: Role of life insurance

Quote:
Originally Posted by Martha
So what are you going to do to protect yourself from yourself when you might become less competent?* Rely on your kids to figure it out?* What if you have no kids?*

I am not sure I would want to have a trust controlled by a third party trustee while my spouse and I are still living.*

The problem is that incompetence sneaks up on you.
It can also hit you quite quickly too. A worse case scenario would be Greg is injured (frying pan to the head, etc) and is made incompetent and is institutionalized. You are injured in an automobile accident and are killed or incapacitated to make discisions for either of you.

Who would you trust to follow your wishe? A third party is sometimes the ONLY option to people with no family or who live a long way from family or friends that could help.

We named several family members and then close friends in a defined order of authority in our trusts to address this. Only when we run out of family would we have to resort to a third party and by then, who really cares what happens?

__________________

__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: Role of life insurance
Old 12-06-2005, 08:31 AM   #63
Thinks s/he gets paid by the post
greg's Avatar
 
Join Date: Jun 2005
Posts: 1,071
Re: Role of life insurance

Quote:
Originally Posted by MRGALT2U

Go into it with your head already swimming in a stew of conflicts
and questions?? Man, it's just asking for trouble IMHO.

Hey, that was a hell of a good metaphor. Do NOT try this at home.

JG
JG-head stew? I don't think so.
__________________
Compounding: Never forget! Never not remember!
greg is offline   Reply With Quote
Re: Role of life insurance
Old 12-06-2005, 08:56 AM   #64
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: Role of life insurance

Quote:
Originally Posted by Martha


The problem is that incompetence sneaks up on you.
Yep, one day you're the "cock of the walk" and before you know it.................................oh, you said "incompetence".

JG
__________________
MRGALT2U is offline   Reply With Quote
Re: Role of life insurance
Old 12-06-2005, 10:21 AM   #65
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 58
Re: Role of life insurance

One good thing about variable universal life insurance is that, in some states, the cash value is protected from creditors.

You have to buy low load, keep the policy in force, "borrow" from the cash value in later years, and hold it to death to make it worth the costs.


http://www.consumerfed.org/pdfs/VULReport0203.pdf
__________________
mark is offline   Reply With Quote
Re: Role of life insurance
Old 12-06-2005, 01:28 PM   #66
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: Role of life insurance

Quote:
Originally Posted by MRGALT2U
Yep, one day you're the "cock of the walk" and before you know it.................................oh, you said "incompetence".*

JG
Thats OK JG.
A little wheat bread and Viagra should fix you right up.
__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: Role of life insurance
Old 12-06-2005, 01:48 PM   #67
Dryer sheet aficionado
 
Join Date: Mar 2005
Posts: 32
Re: Role of life insurance

When my dad was 50 years old, he dropped dead of a pulmonary embolism while working. He did not believe in leaving any life insurance because he believed another man would spend it. As a result of that dangerous thinking my uneducated, untrained mother was plunged into a financial chaos that continues 32 years later. She was forced to move from beautiful new home (with no equity of course) to an apartment and then to a trailer park. Thanks to Hurricane Francis the next move was into an in-law suite in my home. She gets $718 a month in Social Security. Think about living on that meager sum. If you love the woman enough to have married her please consider her life without you.
__________________
cabbage is offline   Reply With Quote
Re: Role of life insurance
Old 12-08-2005, 07:34 PM   #68
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,094
Re: Role of life insurance

An article at Marketwatch.com offers some advice to retirees on the need for life insurance. No surprise, the answer is "it depends". The article says you may need it if:

1) You have a mortgage or large debt to pay off.

2) You have survivors -- a spouse, children, grandchildren -- with special needs.

3) You will face a significant state or federal death tax when you die or your surviving spouse dies.

4) You'd like to leave a legacy to your favorite charity.

5) You anticipate needing a home health aide, an assisted-living facility or a nursing home and you don't have the funds to pay for such care. ... consider using the cash value in [your] life insurance policy to pay the bills.

6) You want to help a business partner buy a retiree out. In those cases, the retiree should make sure the business partner owns the life insurance policy.


http://tinyurl.com/8wtrd

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Role of life insurance
Old 12-08-2005, 08:13 PM   #69
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Re: Role of life insurance

I have no idea what she means.* Maybe someone else can help with this one* *
__________________
JPatrick is offline   Reply With Quote
Re: Role of life insurance
Old 12-08-2005, 11:34 PM   #70
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Role of life insurance

Quote:
Originally Posted by JPatrick
Quote:
Originally Posted by MRGALT2U* *We met through an internet
"Matchmaker" site. *She often says she wishes she had never bought
that "damn computer". *I wonder what she means by that? *:)

JG
[quote
I have no idea what she means.* Maybe someone else can help with this one* *
I have no idea either. ReWahoo, you're the moderator, perhaps you will consider arranging for a poll, to get to the bottom of this. (Somebody must know).!
__________________
Jarhead* is offline   Reply With Quote
Re: Role of life insurance
Old 12-09-2005, 08:28 AM   #71
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Re: Role of life insurance

Quote:
Originally Posted by ex-Jarhead
I have no idea either.* ReWahoo, you're the moderator, perhaps you will consider arranging for a poll, to get to the bottom of this.* (Somebody must know).!
Yep, it's going to take a real geek to figure this out.
Shoot, it could be a problem with the "hard drive", it maybe doesn't boot up at all, or maybe it crashes right in the middle of something important.* Like I say, this is serious geek work.*
__________________
JPatrick is offline   Reply With Quote
Re: Role of life insurance
Old 12-09-2005, 09:18 AM   #72
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,094
Re: Role of life insurance

Quote:
Originally Posted by JPatrick
Yep, it's going to take a real geek to figure this out.
Shoot, it could be a problem with the "hard drive", it maybe doesn't boot up at all, or maybe it crashes right in the middle of something important. Like I say, this is serious geek work.
Since I don't fit either requirement (I am definitely not serious nor am I a geek), I'm not the right candidate for the job. Not sure anyone on this board is willing to take this task on as it looks to be a huge undertaking and lots of w*ork.

My recommendation is for JG to eat some wheat bread and call ex-Jarhead if symptoms persist.

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Role of life insurance
Old 12-09-2005, 12:41 PM   #73
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Role of life insurance

Quote:
Originally Posted by REWahoo!
An article at Marketwatch.com offers some advice to retirees on the need for life insurance. No surprise, the answer is "it depends". The article says you may need it if:

...

5) You anticipate needing a home health aide, an assisted-living facility or a nursing home and you don't have the funds to pay for such care. ... consider using the cash value in [your] life insurance policy to pay the bills.
Long term care insurance? Seems a lot cheaper than buying a whole life policy just to have the funds available for paying for long term care. I'd buy term life, LTC insurance, and pocket the bags-o-money you'll save. Otherwise, good article. Like so many things, the life insurance question is best answered with "it depends".

__________________
justin is offline   Reply With Quote
Re: Role of life insurance
Old 12-09-2005, 12:45 PM   #74
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Role of life insurance

Quote:
Originally Posted by justin
Long term care insurance?* Seems a lot cheaper than buying a whole life policy just to have the funds available for paying for long term care.* I'd buy term life, LTC insurance, and pocket the bags-o-money you'll save.* Otherwise, good article.* Like so many things, the life insurance question is best answered with "it depends".

I'd think twice (or more) before buying LTC insurance.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Role of life insurance
Old 12-09-2005, 01:39 PM   #75
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Role of life insurance

Quote:
Originally Posted by brewer12345
I'd think twice (or more) before buying LTC insurance.
I would too. Given the cost, it doesn't seem like such a good deal. But faced with the alternative of paying for whole life insurance, the cash value of which will fund your long-term care needs, versus paying for term life and a separate LTC policy, I'd have to imagine the latter is more cost effective. For someone with a high net worth, "none of the above" may be the right choice.

__________________
justin is offline   Reply With Quote
Re: Role of life insurance
Old 12-09-2005, 04:02 PM   #76
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Role of life insurance

Quote:
Originally Posted by REWahoo!
Since I don't fit either requirement (I am definitely not serious nor am I a geek), I'm not the right candidate for the job.* Not sure anyone on this board is willing to take this task on as it looks to be a huge undertaking and lots of w*ork.

My recommendation is for JG to eat some wheat bread and call ex-Jarhead if symptoms persist.

Apparantly you've confused me with the alter-ego you've invented with your jokes. (I have no need for Wheat Bread. (Yet).

JG has asked a legitimate question for the forum to consider. If you have no answer, please admit so.

Sorry, JG, I tried.

__________________
Jarhead* is offline   Reply With Quote
Re: Role of life insurance
Old 12-09-2005, 06:22 PM   #77
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,094
Re: Role of life insurance

Quote:
Originally Posted by ex-Jarhead
Apparantly you've confused me with the alter-ego you've invented with your jokes. (I have no need for Wheat Bread. (Yet).

JG has asked a legitimate question for the forum to consider. If you have no answer, please admit so.

Sorry, JG, I tried.
Ouch! You must've had a lousy day of golf...

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Role of life insurance
Old 12-09-2005, 07:22 PM   #78
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Role of life insurance

Quote:
Originally Posted by REWahoo!
Ouch!* You must've had a lousy day of golf...


[/quote

__________________
Jarhead* is offline   Reply With Quote
Re: Role of life insurance
Old 12-10-2005, 09:31 AM   #79
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: Role of life insurance

A lousy day golfing is better than a good day at work!! :P
__________________

__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Going bare on insurance... SecondCor521 FIRE and Money 44 09-21-2006 12:25 PM
What to do when you can't get life insurance? LRAO FIRE and Money 8 09-21-2006 11:10 AM
Bad news insurance bill Martha FIRE and Money 6 05-08-2006 10:37 AM
Life Insurance - necessary or necessary evil? Rich_by_the_Bay FIRE and Money 64 03-10-2006 12:08 PM
Life insurance change ferco Other topics 6 02-14-2006 12:09 PM

 

 
All times are GMT -6. The time now is 11:01 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.