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View Poll Results: Those of you still working/not FIRE, how much life insurance are you carrying?
2x annual income or less 46 47.92%
3x to 5x AI 26 27.08%
6x to 8x AI 15 15.63%
9x to 11x AI 5 5.21%
12x or more 4 4.17%
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Re: How much life insurance do you carry?
Old 06-30-2006, 01:13 PM   #41
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Re: How much life insurance do you carry?

Quote:
Originally Posted by Azanon
I never understood carrying enough to replace yourself if you die.* I have a beautiful wife (with a MSW degree) with one child.* If i die, she needs enough to deal with the temporary setback and enough to make life adjustments to replace me.* My salary doesnt have to be replaced permanently, or worse, her never need any more monetary sources again!* *

It is legal in the US to remarry, and she can also get a job if she just doesnt want to (remarry).* *IMO, one of the spouses dying, even the one that works, isnt a license for the other to sit on their ass for the rest of their live.* *Life is always handing "you and I" changes and part of living life is adjusting to those inevitable changes.

So i dont get the permanently replacing your income.* *IMO, the life insurance companies are getting the ones of you doing that fully hook, line, and sinker.

We each carry small 100K dollar term policies, and my fed government would also pay 1.5x my salary in lump sum too.* * More than enough to buy her time to adjust to me being gone.

Azanon*
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Re: How much life insurance do you carry?
Old 06-30-2006, 01:55 PM   #42
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Re: How much life insurance do you carry?

Quote:
Originally Posted by Azanon
I never understood carrying enough to replace yourself if you die.* I have a beautiful wife (with a MSW degree) with one child.* If i die, she needs enough to deal with the temporary setback and enough to make life adjustments to replace me.* My salary doesnt have to be replaced permanently, or worse, her never need any more monetary sources again!* *

It is legal in the US to remarry, and she can also get a job if she just doesnt want to (remarry).* *IMO, one of the spouses dying, even the one that works, isnt a license for the other to sit on their ass for the rest of their live.* *Life is always handing "you and I" changes and part of living life is adjusting to those inevitable changes.

So i dont get the permanently replacing your income.* *IMO, the life insurance companies are getting the ones of you doing that fully hook, line, and sinker.

We each carry small 100K dollar term policies, and my fed government would also pay 1.5x my salary in lump sum too.* * More than enough to buy her time to adjust to me being gone.

Azanon*
You might be very suprised what does and does not happen after someone is widowed. There are far more un-re-married widows out there than there are remarried ones. I have many widowed friends and getting remarried is not a priority with many of them. Each person has their own wants and needs after the death of a spouse. "Adjusting to [you] being gone.." is not as simple as you may believe. It is not a matter of getting used to being alone it is a myrid of hundreds of things that happen during widowhood that take some people a very long time (if ever) to resolve and find the courage and desire to love and be loved in a marriage-relationship again.

I am not trying to bust your chops here. I am just trying to relate to you and to anybody else who thinks that their widowed spouse will even want to remarry. Replacing a spouses salary can be a major issue for some widows since their lifestyle is dependent upon the combined wages of both partners. I have seen far too many widows forced to sell the house and many of their belonging and move to a much less expensive area because they cannot meet the monthly bills with the loss in income. For these people, Life Insurance would have prevented major changes to their life and the sale of their home and the need to move away from family and friends at a time when they needed them the most.

Your wife may indeed be able to continue to work and may be able to fully provide for herself and your child for as long as necessary without your paycheck. Just don't count on her finding a new wage earning partner for a very long time (if ever). Finding a decent guy who would want to raise your kid, earn a good living, love your wife above all others, and who is not already married or is not a nut case, is a tall order.

Just my two cents (based on some very personal experiences).
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Re: How much life insurance do you carry?
Old 06-30-2006, 02:38 PM   #43
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Re: How much life insurance do you carry?

For $20 a month you could carry several hundred thousand dollars in life insurance, this will make no impact on your lifestyle and will provide a tremendous amount of security for your spouse and child if you should die. There is no rational reason to forgo such a minor expense, it sounds more like "I'm dead, screw you!". Love is supposed to be about giving without thought of what you get back, what's in it for you. Of course, I remember you don't believe love exists so I guess this fits.

If you die early in your retirement, will you have your will made up to ensure most of the money is donated to charity, leaving just enough to give your wife time to find a job and get off her lazy butt? After all, we don't want her sitting on aforementioned butt for the rest of her life, and you are the one who made the dough, right? I'm sure you'll say that's different. :
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Re: How much life insurance do you carry?
Old 06-30-2006, 02:46 PM   #44
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Re: How much life insurance do you carry?

Quote:
Originally Posted by SteveR
I am not trying to bust your chops here.* I am just trying to relate to you and to anybody else who thinks that their widowed spouse will even want to remarry.*
Steve, I'm going to have to study this "tact" concept some more. I thought you were saying "Unlike you, I actually have the credibility to know what the hell I'm talking about!"
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Re: How much life insurance do you carry?
Old 06-30-2006, 02:49 PM   #45
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Re: How much life insurance do you carry?

Use to just have what was provided by work plus supplemental that was offer - was about 3-4 times salary.

When I retired I went to my American Family agent that I use for car home & umbrella and asked him about life - and he looked at my assets and age said I didn't need any. Asked him about health & dental he said I could get a better deal elsewhere.....I didn't know agents could actually say no to writing insurance!
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Re: How much life insurance do you carry?
Old 06-30-2006, 03:21 PM   #46
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Re: How much life insurance do you carry?

Quote:
Originally Posted by brewer12345
Ah, yes, the ever popular "pimp my wife" strategy...


tactful, no, hilarious, yes.*
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Re: How much life insurance do you carry?
Old 06-30-2006, 08:09 PM   #47
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Re: How much life insurance do you carry?

Quote:
Originally Posted by Nords
Steve, I'm going to have to study this "tact" concept some more. I thought you were saying "Unlike you, I actually have the credibility to know what the hell I'm talking about!"
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Re: How much life insurance do you carry?
Old 07-11-2006, 01:40 PM   #48
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Re: How much life insurance do you carry?

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Re: How much life insurance do you carry?
Old 07-11-2006, 01:53 PM   #49
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Re: How much life insurance do you carry?

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Re: How much life insurance do you carry?
Old 07-20-2006, 08:32 AM   #50
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Re: How much life insurance do you carry?

We have very little, less than 1x

We have a growing estate (5x) and no debt, and no dependants, so we really don't need the insurance anymore.

I guess we'll drop the policies someday.
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Re: How much life insurance do you carry?
Old 07-21-2006, 03:31 AM   #51
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Re: How much life insurance do you carry?

I guess I am the only one with a lot of insurance or my salary is too low?

I only make around $70K/ year and currently have just over $1M of term between my military SGLI and another term policy. I pay around $50/month but that includes some coverage on my wife and kids as well.

I look at my age, my kids age, and my profession.

My purpose for life insurance is to provide for my family and pass on wealth.

I have strict rules on what and when to invest my proceeds if I die to help my wife and kids for the rest of their lives.

I also work in a high risk job and see the need for it more.

Here is another question:

How many FIRE recieved insurance or inheritance and used it to build on your FIRE?


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Re: How much life insurance do you carry?
Old 07-21-2006, 10:28 AM   #52
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Re: How much life insurance do you carry?

I carry 5X my AI plus what ever else the Government kicks in. I will decrease this amount as our portfolio increases.

I carry more due to the fact that I can't marry my partner of 18 years. She would not be able to collect any social security benefits from my death.

In reading someone else's posts about being able to pick up $200k of insurance for less than $10 per month - I wonder if I should have price checked ... I just assumed I could get it through a group plan cheaper than going outside of work.

-helen
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Re: How much life insurance do you carry?
Old 07-21-2006, 11:23 AM   #53
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Re: How much life insurance do you carry?

Quote:
Originally Posted by PsyopRanger
I guess I am the only one with a lot of insurance or my salary is too low?

I only make around $70K/ year and currently have just over $1M of term between my military SGLI and another term policy.* I pay around $50/month but that includes some coverage on my wife and kids as well.

I look at my age, my kids age, and my profession.*

My purpose for life insurance is to provide for my family and pass on wealth.*

I have strict rules on what and when to invest my proceeds if I die to help my wife and kids for the rest of their lives.

I also work in a high risk job and see the need for it more.

Here is another question:

How many FIRE recieved insurance or inheritance and used it to build on your FIRE?*


I think you have it right on, I am in a similar situation, make just a little bit more money, carry a little bit less in insurance, have a wife and 22 month old daughter to take care of. I don't know if many people use recieved insurance to build on FIRE, but I do know people who went from comfortable to near wealthy in their retirement due to inheritance. Here in San Diego, it's pretty common, since the aging parent will have probably paid off the house, then when they pass away the boomer kid gets half a mil from the sale of the home. A buddy of mine just had that happen a couple of months ago. Never a happy moment to lose a loved one, but it just moved his retirement date from 65 to 55! Also, it was his Grandfather-in-law, still alive, in his late 90's, but near the end at this point. So he sold his house and moved in with them to spend time with his two great-grandkids. A happy ending, IMHO.
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Re: How much life insurance do you carry?
Old 07-21-2006, 01:30 PM   #54
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Re: How much life insurance do you carry?

Quote:
Originally Posted by PsyopRanger
I guess I am the only one with a lot of insurance or my salary is too low?

I only make around $70K/ year and currently have just over $1M of term between my military SGLI and another term policy. I pay around $50/month but that includes some coverage on my wife and kids as well.
DW and I each carried well over $1M in term insurance while I was working. The concept was that, if either of us died, the other could FIRE immediately if he or she so chose (loss of consort compensation, so to speak). Now that we are FI (and me RE) we dropped the insurance.
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Re: How much life insurance do you carry?
Old 07-21-2006, 02:32 PM   #55
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Re: How much life insurance do you carry?

Quote:
Originally Posted by Laurence
I think you have it right on, I am in a similar situation, make just a little bit more money, carry a little bit less in insurance, have a wife and 22 month old daughter to take care of. I don't know if many people use recieved insurance to build on FIRE, but I do know people who went from comfortable to near wealthy in their retirement due to inheritance. Here in San Diego, it's pretty common, since the aging parent will have probably paid off the house, then when they pass away the boomer kid gets half a mil from the sale of the home. A buddy of mine just had that happen a couple of months ago. Never a happy moment to lose a loved one, but it just moved his retirement date from 65 to 55! Also, it was his Grandfather-in-law, still alive, in his late 90's, but near the end at this point. So he sold his house and moved in with them to spend time with his two great-grandkids. A happy ending, IMHO.
Having grown up in San Diego, I have a lot of friends who will inherit 4 or 5 million due mostly to the inflated housing prices. They mostly are only children or have one sibling too, whereas their parents were one of five or six kids. I think the trend toward smaller families will do a lot to keep that wealth concentrated over time.
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Re: How much life insurance do you carry?
Old 07-25-2006, 10:46 PM   #56
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Re: How much life insurance do you carry?

Quote:
Originally Posted by Laurence
I think you have it right on, I am in a similar situation, make just a little bit more money, carry a little bit less in insurance, have a wife and 22 month old daughter to take care of. I don't know if many people use recieved insurance to build on FIRE, but I do know people who went from comfortable to near wealthy in their retirement due to inheritance. Here in San Diego, it's pretty common, since the aging parent will have probably paid off the house, then when they pass away the boomer kid gets half a mil from the sale of the home. A buddy of mine just had that happen a couple of months ago. Never a happy moment to lose a loved one, but it just moved his retirement date from 65 to 55! Also, it was his Grandfather-in-law, still alive, in his late 90's, but near the end at this point. So he sold his house and moved in with them to spend time with his two great-grandkids. A happy ending, IMHO.
Laurence, the DW an I both have 1 million term life policies. Once our net worth hits 1 million or more, we are dropping both polcies. I figure it is a only safety net in case one of us dies. Once your net worth hits a certain point- will you still carry any life insurance?
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Re: How much life insurance do you carry?
Old 07-25-2006, 11:51 PM   #57
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Re: How much life insurance do you carry?

No, in fact that's why we got ten year term policies, 9 years from now when they run out we hope to have our net worth at a comfortable point. My work will still give me 3x annual salary, so that should be enough.
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Re: How much life insurance do you carry?
Old 07-26-2006, 06:56 AM   #58
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Re: How much life insurance do you carry?

Just curious here...

Are all you active-duty military types absolutely sure that your life insurance will pay if you die in a war zone/combat/etc? I can't recall how it was when I was in. I just remember that widows often got nothing or close to it.
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Re: How much life insurance do you carry?
Old 07-26-2006, 07:05 AM   #59
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Re: How much life insurance do you carry?

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Originally Posted by Ed_The_Gypsy
Just curious here...

Are all you active-duty military types absolutely sure that your life insurance will pay if you die in a war zone/combat/etc?* I can't recall how it was when I was in.* I just remember that widows often got nothing or close to it.
Yes

Our policies have no wartime, no aviation and no terrorism exclusions.

http://www.aafmaa.com/LifeInsurance/Eligibility.asp
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Re: How much life insurance do you carry?
Old 07-26-2006, 07:09 AM   #60
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Re: How much life insurance do you carry?

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Originally Posted by PsyopRanger
Yes

Our policies have no wartime, no aviation and no terrorism exclusions.

http://www.aafmaa.com/LifeInsurance/Eligibility.asp
Ranger, I am curious: why deal with these guys instead of USAA?
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