Life Insurance

[youbet]

Life insurance is security in the event that either you or your significant other outlast each other. If you play your cards right and can self insure yourselves, I see no reason for life insurance.

I generally agree but despite that, we're doing something different. DW and I have an assortment of small whole life policies originated many decades ago when we were kids. Death payouts are very roughly $50k each person. I was going to cash them out and invest the money but eventually decided to keep them for convenience. The insurance company says they will pay out within three weeks of receiving a death certificate and I've called and asked that question multiple times over the past few years. They pay dividends on the cash values of about 4% which more than cover the premiums. (Divs pay the premium and also buy some additional paid-up insurance annually). So the only work on our part is filing the policy statements when they arrive each year and noting the new death benefit amounts. I figured with roughly $50k available to the survivor shortly after one of us dies, I don't have to keep short term needs for that circumstance as much on the front burner when managing the FIRE portfolio.

So, despite being in fine shape to self-insure for either LTC or for the survivor, we hang onto the policies. I wouldn't doubt that if I had cashed them in when I was thinking about it several years ago, that money would be worth more than the death benefits on the policies today since the markets have been so good. But didn't know that then, wanted short term survivor needs covered with conservative investments and this is really convenient.

Lots of ways to do things.......

 

[Koolau]

You can probably say the same thing about any kind of insurance that you need to collect on. Homeowner's if your house burns down. Auto if you are involved in an accident. Umbrella if you are sued. Etc. Sorry that your mom had to pass in a NH, but glad to hear the cost was covered.

Yeah, I always thought an insurance salesperson had a tough job. They sell you something you HOPE is a waste of money. Of course, the flip side is that IF you do happen to need it, you probably bless the day (and salesperson) you bought the insurance from. Insurance is a strange animal.

 

[Out of Steam]

When we had the kids, I carried all the term life (company group policy) that was allowed. It was relatively inexpensive but could have been obtained even cheaper on the open market IF I had been more "insurable." Having kids late in life has lots of issues - being eligible for insurance you never thought you would need is just one of them. YMMV

We also had a child later in life, and have dealt with the problem of insurability with my wife. Fortunately, she had a fairly good amount of insurance before it was an issue.

Also never thought of needing to carry life insurance through most of my 60s.

 

[Sunset]

......The insurance company says they will pay out within three weeks of receiving a death certificate and I've called and asked that question multiple times over the past few years.........

It was quick once the form was received.
When the time comes, phone them and best to have them email the form needed to fill out so it won't get lost in the mail.

 

[Badger]

I have a couple of small whole life policies my father took out on me about 70 and 50 years ago. Now the dividends pay the monthly payments plus some additional insurance. I also have a couple of free and very small term policies through my CU. I don't need any of them now but since they don't cost me anything my wife can use them for a funeral/party when I go.


Cheers!

 

[Koolau]

I have a couple of small whole life policies my father took out on me about 70 and 50 years ago. Now the dividends pay the monthly payments plus some additional insurance. I also have a couple of free and very small term policies through my CU. I don't need any of them now but since they don't cost me anything my wife can use them for a funeral/party when I go.


Cheers!

Now there's an idea. A wake to remember. BTD even in death. I like it. YMMV