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Re: How much Term Life??
Old 01-21-2007, 10:41 AM   #21
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Re: How much Term Life??

I'm 49, DW is 46 and we have $96K remaining on our mortgage, although we are planning to downsize shortly & pay cash, or almost cash. I currently carry somewhere around $600K in Term life insurance, no whole life. I had a small whole life, but cashed it in some time ago to fund other pursuits. The $600K is on me, DW is insured for approximately $125K. 2 of my 3 kids are grown & on their own, a 17 yr old remains at home till I can kick him out he decides to strike out on his own. He currently says he is moving to California to be a professional poker player. :
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Re: How much Term Life??
Old 01-29-2007, 08:32 PM   #22
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Re: How much Term Life??

A few of you mentioned the history of family members playing a role in the policies. How did the insurance companies find out about them? I'm assuming through a questionaire... Do you have to tell? I'm getting ready to increase our insurance and would prefer to not let anyone know my dad and his brother both had heart attacks at 45
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Re: How much Term Life??
Old 01-29-2007, 09:13 PM   #23
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Re: How much Term Life??

Quote:
Originally Posted by pinkmali
A few of you mentioned the history of family members playing a role in the policies. How did the insurance companies find out about them? I'm assuming through a questionaire... Do you have to tell? I'm getting ready to increase our insurance and would prefer to not let anyone know my dad and his brother both had heart attacks at 45
They will ask, if you don't tell then you'll be committing fraud on the insurance company. After you die they may do a more thorough investigation of your family history and if they discover the fraud they will probably decide to just return all the premiums you paid (sans interest, of course) instead of paying the death benefit. This will all be in the legal fine print of the policy.

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Re: How much Term Life??
Old 01-29-2007, 10:56 PM   #24
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Re: How much Term Life??

Quote:
Originally Posted by SecondCor521
They will ask, if you don't tell then you'll be committing fraud on the insurance company. After you die they may do a more thorough investigation of your family history and if they discover the fraud they will probably decide to just return all the premiums you paid (sans interest, of course) instead of paying the death benefit. This will all be in the legal fine print of the policy.

2Cor521
While it's true, that you taking a risk by purposely ommitting certain details on a life ins. application, any life policy I've seen is not contestible after two years. They will even cover suicide after the two year period of issuance.

But remember this is free information
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Re: How much Term Life??
Old 01-29-2007, 11:17 PM   #25
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Re: How much Term Life??

Quote:
Originally Posted by Jarhead*
While it's true, that you taking a risk by purposely ommitting certain details on a life ins. application, any life policy I've seen is not contestible after two years. They will even cover suicide after the two year period of issuance.

But remember this is free information
Umm, I think that only applies for the cases where you die of something you disclosed, or suicide as you note. I don't think the 2 year period covers fraud.

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Re: How much Term Life??
Old 01-30-2007, 01:10 PM   #26
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Re: How much Term Life??

I'm carrying 6X my salary. We are debt free and in major accumulation mode. This year I turn 50 and expect my costs will go up. In looking at my spreadsheet I realized I can start dropping my coverage by 1X every year at the end of next year. By the time I retire I will be down to the basic coverage. After that, my partner will be set no matter what happens to me.

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Re: How much Term Life??
Old 01-30-2007, 01:42 PM   #27
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Re: How much Term Life??

Instead of guesswork, why not use one of those online calculators. Here's one:
http://www.smartmoney.com/insurance/...fm?story=intro
USAA should have a similar calculator.

They all begin with your salary. They all should show how much monthly income your survivors will get from Social Security. That's right, surviving spouse and surviving children (up into college years) get money from the government. It can be a substantial sum. My spouse had college paid for by survivors benefits.

There is no need to pay off the mortgage "all at once." You just need enough insurance such that when invested it can provide for your income (less any SS payments), so that expenses including mortgage payments can be made.

For ourselves, we have no life insurance beyond what our employers provide because we are self-insured nowadays.

Just as important are wills with primary and alternate guardians for the children.

Don't forget: Receiving a life insurance payout is not meant to be like winning the lottery.
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