Aldeer.com Forums Alabama Deer Talk Aldeer General Forum Life insurance

14 years ago I sold a $500,000 life policy to my father-in-law. He was 49 at the time, owned a commercial flooring company all his life, was doing mighty well financially...living it up for sure. He and my mother-in-law were very old fashioned, she never worked, never handled the money, hardly drove a car herself, totally pampered and sheltered. Well, over the last many years construction basically became a race to the bottom, and unfortunately he was running up front in that race. When the bottom eventually fell out, he wound up losing that life policy because he couldn't afford it anymore (had actually already borrowed all the cash value from it). His policy lapsed, then in that same year he had a stroke at age 59, rendering him uninsurable. Last year at age 63 he died, not a penny in savings, no life insurance, business bankrupt, home mortgaged to hilt in a failed effort to float the business. Now I have assumed responsibility for my mother-in-law, she lost her home, didn't even have money to pay for the funeral (I did that out of pocket, but most of the family never knew it). She barely gets enough social security to pay basic utilities, much less buy a house, or even rent somewhere decent. This is going to cost ME, the burden fell back on his children (my wife). Y'all, go see your agent and buy some life insurance. Don't count on the stuff you have through work (I believe statistics say less than 1% of work-related life insurance ever pays out). I tell everybody to take what your work will give you or let you buy (it's cheap group stuff), but you are wise to pretend you don't have it, because in the end you are 99% certain not to. Just wanted to share what's important to me, in hopes that it helps someone else! I could genuinely share countless stories like this...it really does happen, every day.

My wife has me insured to the hilt. I actually think she is thinking about offing me. But you are right you never know and it is smart to have some kind of policy to help your loved ones out just in case you can't be there anymore.

I just got a new term policy for me. Locked it in for 30 years.

And if you had sold him a term policy and invested the difference he would have still had that insurance. I see no sense in buying any insurance that has a cash value attached to it.

I need to get another term policy. I have one $250K term policy that's up in the next year or 2. I'm 56 and it's probably gonna be pricy but so be it.

At my work they pay what you made the last year you worked and you can get 5,000 more for 1.00 per month and up it to whatever amount you want it to.

??? What do you mean 99% certain not to?

I was about to ask the same thing. Do tell !

I bought a 100,000 policy about 35 years ago, cost about $60 a month. When I bought it the agent said it won't ever cost any more per month. I got a letter a couple of months ago saying I need to pay $20 more per month or my policy would be lapsed in 2016, can't find the old paperwork from the original agent and the company has sold several years ago. I have over $25,000 out of pocket paid in and don't know if I need to just let it go and get a term policy. I'm 62.

My wife often reminds me I am worth more dead than alive.

If you're in decent health you should be able to get a term policy for around the same face value/premium now. Considering you are non-tobacco, etc.

Term is the only way to go IMO.. I got a 30 yr fixed for 500k at age 32 and its $50 a month.

Zander insurance online is who i got mine thru. Recommended by Dave Ramsey.

Also... LONG term disability that pays out 2k a month till retirement is right at $50 a month.

I wouldnt buy short term.. IIRC the most it will pay is 6 months. Just take what that payment would be a stick it in the bank in a emergency fund that you dont touch unless its a emergency.

My first wife would often joke about that. Looking back , I think she was serious.

Dave Ramsey has great advice in this area. 10x your income in term insurance. If you follow his plan by the time you get to renewing age on a term policy ( assuming your in your 30's) you shouldn't need insurance anymore.

How is that?

Retirement, savings, etc. at 35 you should have at least 1.5 times your annual income, at 45 you should have 3x.

How does a term policy give you that? It was my understanding that a term policy is worthless after the term is over.

When my wife started writing insurance. She ended up getting three policies on me. I started taking an extra sandwich for a total of 3 sandwiches.one for break.one for lunch.one for a co worker at break. After a month or two of that i decided to go with can lunch. Like she says. Cant be too careful.

N2TRKYS What would you do? If you had $50 to spend on insurance a month. You could buy a cash value policy For $50 a month that is worth $50000 if you die. If you die you get $50000 the insurance keeps the cash value. If you bought $50000 term policy it would cost you $25 a month. You put the other $25 in anything else IRA, bank savings account. A can in the back yard. If you die your wife gets $50000 plus she gets to go dig up the can in the back yard. What makes more sense?

How do ya think you'll really feel about it when your dead....That's the question...