Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 07-04-2014, 11:06 AM   #21
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 3,801
I cancelled mine shortly after retirement.

One reason to keep it would be if one spouse is financially strapped if the other one dies. If DW dies, her pension will probably go away (don't think I'll go joint life, she's 5 years younger than me), along with her SS. That leaves me a little worse off than she would be if I died. However, I'm the financial planner and figure I can get by fine with less. So no life insurance for us.

Animorph 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 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!

Old 07-04-2014, 11:36 AM   #22
Recycles dryer sheets
Join Date: Jun 2014
Posts: 74
If this is a term policy with fixed yearly payments, it actually becomes "cheaper" when you get older. For example, you might be paying $500 a year for a 25-year term. The coverage you get for the $500 at 30 years old is the same as when you are 50 years old, making it relatively cheaper as you get older.

catotx is offline   Reply With Quote
Old 07-04-2014, 01:44 PM   #23
Recycles dryer sheets
Join Date: Nov 2013
Posts: 184
Thanks for the responses! Yep, no debt really except one mortgage and that will go away when we retire and purchase final home with cash.

I was thinking that the amount we are paying now for our life insurance could go towards a long term care policy. I keep going back and forth on LTC, but I tend to rather be safe than sorry. DH diagnosed with Type 2 Diabetes and both of us have some other minor health issues so LTC probably makes sense.

Debinnov a is offline   Reply With Quote
Old 07-04-2014, 01:55 PM   #24
Full time employment: Posting here.
martyp's Avatar
Join Date: Sep 2010
Location: El Cerrito
Posts: 920
I would think is depends on why you bought the term life insurance in the first place. If that need is still there then keep it. If not then cancel it.

I bought term life insurance when we first bought our house. The purpose was to enable one of us to keep the house if the other one died. Once our incomes were high enough so that that was no longer an issue we cancelled the insurance. That was 20 yrs ago.
Happy, Wild, and Free
martyp is offline   Reply With Quote
Old 07-04-2014, 04:52 PM   #25
Dryer sheet wannabe
Join Date: Feb 2014
Posts: 17
Given that the death benefit is only 10% of your net worth, it doesn't make sense to keep paying the premium from a financial planning perspective. However, your current age and health circumstances may make it a decent investment, if you bought it a while ago and your health has declined, albeit one that I'm sure the beneficiary would prefer not to collect on.

Sent from my iPad using Early Retirement Forum
rrppve is offline   Reply With Quote
Just retired... cancel term life?
Old 07-04-2014, 10:58 PM   #26
Recycles dryer sheets
Join Date: Jan 2014
Posts: 221
Just retired... cancel term life?

Will keep my inexpensive term insurance until the term expires in a few years. No need to renew after that because I'm ER'd and don't have any income I need to replace. No small kids either. Enjoy life!
PERSonalTime is offline   Reply With Quote
Old 07-05-2014, 08:54 AM   #27
Recycles dryer sheets
Milkman's Avatar
Join Date: Apr 2007
Location: Longmont, CO
Posts: 66
We dropped our Term life insurance after we paid off our mortgage and then added an umbrella policy.
Milkman is offline   Reply With Quote
Old 07-05-2014, 01:42 PM   #28
Thinks s/he gets paid by the post
kcowan's Avatar
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 4,438
Send a message via Skype™ to kcowan
I pay $930 per month for $500k. It is flat and good for life. Every ten years it costs $111,600. I figure if I live to be 90, it will have been a bad decision. I am hoping that is the case because by then my other investments will make it look like chicken-feed.

But if I die by age 85, it will ease the capital gains bite.
For the fun of it...Keith
kcowan is offline   Reply With Quote
Did the Same!
Old 07-05-2014, 01:57 PM   #29
Confused about dryer sheets
Join Date: Jan 2014
Location: Durham, NC
Posts: 8
Did the Same!

We did that as well.
Kamei is offline   Reply With Quote
Old 07-05-2014, 02:34 PM   #30
Dryer sheet wannabe
Dixie19's Avatar
Join Date: Apr 2014
Location: Spring
Posts: 13
Mine is so cheap I'm currently keeping it as an inheritance bump for my 3 kids since they're young adults who've not yet purchased homes, etc. I'd be pleased to leave them that gift.
Dixie19 is offline   Reply With Quote
Old 07-05-2014, 04:29 PM   #31
Recycles dryer sheets
Cat-tirement's Avatar
Join Date: Mar 2013
Posts: 169
I never bought term insurance myself, though Megacorp provides a pretty good amount at no charge. I don't plan to replace it when I retire. I did recently drop a supplemental disability policy in light of my retirement later this year.
How can you tell when a cat is retired?
Cat-tirement is offline   Reply With Quote
Old 07-06-2014, 07:58 AM   #32
Full time employment: Posting here.
Badger's Avatar
Join Date: Nov 2008
Posts: 702
At $165/m + your premiums I could have a great time with the extra money living life instead of the payout going to someone else when I die.

I have a similar retirement nest egg. When employed I had life insurance through the college, about 2k free from the credit union, and $37k whole life my parents took out when I was a child. I still have the credit union and the whole life since it is paid up so I now get dividends that pay for additional insurance. I'll probably stop the additional insurance and just take the dividends to spend.

If your house is paid up and there are no children what would you need the insurance for?

Badger is offline   Reply With Quote
Old 07-06-2014, 08:11 AM   #33
Thinks s/he gets paid by the post
ivinsfan's Avatar
Join Date: Feb 2007
Posts: 1,299
If you aren't certain you want to drop the insurance and are both in good to decent health, I'd reshop for a cheaper 10 year level term. You price seems high. My DH had the same dollar amount for 700 a year from age 55-65. Dropped it this year as the new cost would be 15000 a year for 65-75. No medical required, which is probably part of why the price was so high.... Thought about policy shopping and repricing but just dropped it instead. At some point in life term insurance just makes itself unaffordable.
ivinsfan is online now   Reply With Quote
Old 07-06-2014, 09:36 AM   #34
Full time employment: Posting here.
Join Date: Jul 2002
Posts: 824
For the last few years, I've been debating if I need to continue my 20 yr level term. Originally purchased it when second son born to supplement my wife raising the two sons. When took early retirement, kept it as my pension survivor benefit would be 55% of original.
But time has gone by, boys are 15 and 17 now, and policy has last renewal in 2018, $300K for $750 per year. Portfolio withdrawal rate has been running 1%, regular living expenses covered by pension and part time work. But college will force the WR to spike to 4-5% for a five year period.
RE2Boys is online now   Reply With Quote
Old 07-07-2014, 04:47 PM   #35
Full time employment: Posting here.
Join Date: Apr 2010
Posts: 976
Did not renew my term insurance after I retired. It was a small add on policy to megacorps term plan. Do not need insurance now.
brett is offline   Reply With Quote
Old 07-08-2014, 07:57 PM   #36
Recycles dryer sheets
Join Date: Oct 2012
Location: Houston
Posts: 56
I retired last year with investments greater than 2m - one of the agreements I made with DW was to obtain 3/4 of a million policy - DW is 10 years younger that me, I she did not feel comfortable without the insurance - its cheap and it makes her feel good.

Loving Life is offline   Reply With Quote

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
Do credit unions cancel credit cards because of inactivity? rec7 FIRE and Money 11 12-22-2008 04:21 PM
When to cancel a LTD policy BigBob Health and Early Retirement 17 05-21-2007 12:56 PM


All times are GMT -6. The time now is 01:38 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.