Rich_by_the_Bay
Moderator Emeritus
I'm curious about the group wisdom re: life insurance in or near retirement. Forget estate planning for the time being... an investment advisor (who does NOT sell life insurance) mentioned to me and my wife that it would be a good idea. I asked him why: if we have enough for both of us to last a lifetime, don't we have more than enough for the day when there is only one of us?
He fumbled around with some vague responses, and than said something like this"
"Suppose one of you gets a debilitating illness requiring $erious care, perhaps a nursing home. You linger 5-7 years or longer at $100K per year in cost plus the amount needed annually by the healthy one. That would erode your retirement savings considerably, maybe even jeopardizing the lifestyle of the survivor -- especially if it happened early. Life insurance would let you dig into your savings, knowing that at the end, you would be at least partially reimbursed when the sick one died."
$1 million would cost a 57 y.o male about $4-6000 per year. What have you done?
He fumbled around with some vague responses, and than said something like this"
"Suppose one of you gets a debilitating illness requiring $erious care, perhaps a nursing home. You linger 5-7 years or longer at $100K per year in cost plus the amount needed annually by the healthy one. That would erode your retirement savings considerably, maybe even jeopardizing the lifestyle of the survivor -- especially if it happened early. Life insurance would let you dig into your savings, knowing that at the end, you would be at least partially reimbursed when the sick one died."
$1 million would cost a 57 y.o male about $4-6000 per year. What have you done?