Should I cancel my term life policy?

[dvalley]

Thanks all. Working on the beneficiary thing now...

Sarah, you're saying I don't actually have to create a trust I can just have the direction to create a trust in my will? That simplifies things for the time being as I'm finding it difficult to do anything else (like live my life) outside of work these days.

 

[Sarah in SC]

Yes, that's what our attorney did for us, is create the trust as part of the will (testamentary trust). A lawyer could probably answer the questions a bit better, as my estate education was about 6 months of classes, mostly dealing with more complicated structures than my own situation.

 

[Payin-the-Toll]

I'd say Keep It. $750k of life insurance for $600 a year sounds like a super deal to me. I just spent that much (yearly) to get a $20k policy--but I'm 66.
You never said how long the policy is good for.

 

[Sunset]

The first thing I would do is remove the EX as beneficiary ....

Simply because you have no guarantee your ex would spend a penny on the DD.

You would think.. a parent would be kind, generous, loving, etc, but I can tell you this is not always the case.

Somehow set up a trust for DD and know for sure she gets the $$$$.

 

[retirementguy1]

Not sure if it is the same in every state but when my sister passed away and her son was a minor, the state gave the money to her ex anyway supposedly as a custodian. Most of the money got squandered before he turned 18.

I think you have enough assets to cover you kid's cost of living plus college so I would cancel the policy.

 

[ivinsfan]

Not sure if it is the same in every state but when my sister passed away and her son was a minor, the state gave the money to her ex anyway supposedly as a custodian. Most of the money got squandered before he turned 18.

I think you have enough assets to cover you kid's cost of living plus college so I would cancel the policy.

Unless unfit, the remaining parent would be the guardian anyway. As I mentioned before, my DS named me on her life insurance policy as it was the only way she felt confident of bypassing her ex completely...I am trustworthy and she knew for sure I would be more capable then her ex.

 

[Yarnstormer]

As an "ex" of a deceased father of a preteen child, I would ask you to in some way provide for your child's care, not just her expenses.
If your ex benefits as well that may not be bad depending on how responsible she is. Your child may need more care and or counseling all of which can be expensive. I had access to FMLA but that was not paid and quite frankly I was discouraged from taking it.
A couple of years to recover without having to work would have benefited my child greatly. Perhaps provide income in case of need? Again, if she is responsible and not remarried to a bad person.
It all depends on the situation of course and your entire family.

Great price on insurance anyway I'd never cancel.


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