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Questions tagged [life-insurance]

to be used for questions related to life insurance.

140
votes
15answers
30k views

For very high-net worth individuals, does it make sense to not have insurance?

Various types of insurance (health, car, life) protect you from relatively low probability but very expensive events in life (cancer, serious car accident, etc.) For the average person, it makes sense ...
52
votes
6answers
8k views

Life insurance that covers only simultaneous/dual deaths

This is probably a stupid idea ... My wife and I both make decent salaries. We believe that either of us could raise our child on a single income if the other passed away. If both of us passed away, ...
46
votes
7answers
12k views

Is life insurance a financially sound safety net?

I'm the sole provider of a household of two - myself and my wife. I make enough to keep us both afloat, with a sizeable chunk of luxury on the side. For practical numbers, I am a month away from ...
39
votes
4answers
3k views

Will my children owe taxes on my life insurance proceeds?

I had always thought that life insurance proceeds were not treated as taxable income. From IRS publication 525: Life insurance proceeds paid to you because of the death of the insured person ...
33
votes
4answers
1k views

How much life insurance do I need?

What is the best way to determine how much life insurance I need?
31
votes
7answers
8k views

Do I need life insurance if I can cover my own funeral costs?

I'm fairly well off and could cover the cost of a funeral out of personal savings and investments. I'm also single, in my late 20s, and live alone. Unfortunately, my family (parents and siblings) aren'...
28
votes
3answers
70k views

Is the “Bank on Yourself” a legitimate investment strategy, or a scam?

There seem to be a lot of advertisements by "Bank on Yourself", promising to show how you can invest in a certain type of life insurance policy. Is this really a legitimate investment strategy, or ...
27
votes
5answers
3k views

How can life insurance possibly work as investment?

Every here and there I hear about the following investment option: There's an insurance company that is willing to take my money and hold it for some very long time (like 5 years or more) and then ...
26
votes
8answers
7k views

Why do people take out life insurance on their children? Should I take out a policy on my child?

I've always found those flyers that the schools send home in September contemptible. But maybe I'm the one in the dark...? If the purpose of life insurance is to replace a wage-earner's income in ...
25
votes
2answers
3k views

Is it acceptable to not have term life insurance in my case?

Age: 42 Married No kids I'm currently the only source of household income. My wife doesn't work outside the home. However, that decision was by choice since my income easily supports the both of us....
24
votes
4answers
5k views

Should I purchase a whole life insurance policy? (I am close to retirement)

I am 65 and my wife is 59, we are planning to work until I am 70-72, and I plan to withdraw social security at 70. We have retirement savings of roughly $2,000,000 of which $1,600,000 is in mutual ...
22
votes
2answers
1k views

Is permanent life insurance necessary in retirement?

I have a salesman trying to convince me that permanent is a great option. What I can't wrap my head around is why I would want permanent life insurance in my old age if I have a retirement nest egg. ...
20
votes
5answers
2k views

Why should I invest my money in a life insurance policy?

As i am 24 now i get lot of calls from lot of insurance companies asking to take up an insurance policy.... So i decided to get answers for some of my questions in basicallymoney... Why should i ...
20
votes
4answers
13k views

When is Cash Value Life Insurance a good or bad idea?

What makes CVLI either good or bad? If you get it while young (~23 years old) and have a respectable starting salary then what are some benefits or detriments to having it? The specific policy I'm ...
19
votes
5answers
3k views

What are the most common reasons for purchasing Life Insurance?

I'm trying to understand the product and I only have the examples of one family member to go by. What you get from internet browsing is predominantly marketing copy from large companies, if ...
19
votes
4answers
4k views

Do I need term life insurance at age 57?

I am looking at a term policies for my wife age 56 $250k worth of coverage with an initial cost $957/yr and myself $400k worth of coverage with an initial cost of $1450 /yr. We have about $100k left ...
19
votes
4answers
4k views

How to be sure my advisor's insurance recommendations are good for me?

Recently, I've been in contact with my financial advisor who has been talking me through a few risk management strategies, as well as other short- and long-term financial goals for retirement, kid's ...
19
votes
5answers
835 views

When do I need life insurance?

checked threads before asking: 1 2 3 I have been so focused on running away of debt, that I haven't thought on future events. I am trying to decide when do I know that I need life insurance? My ...
16
votes
5answers
673 views

What kind of life insurance is cheaper? I'm not sure about term vs. whole vs. universal, etc

What kind of life insurance policies are the cheapest? what are the features of different kinds of policies out there? What should I be looking for?
16
votes
3answers
4k views

Is the beneficiary of life insurance responsible for the debt?

My mother and father were going through a divorce, but it wasn't final at the time of her death. She had made me her sole beneficiary. Am I responsible for any of the debt my parents had?
12
votes
5answers
2k views

What's the difference between Term and Whole Life insurance?

How would one decide which is most appropriate? Are there tax or benefits differences that one offers over the other?
11
votes
3answers
7k views

Credit life & disability Insurance on vehicle loan for elderly buyer: Does it make sense?

An older gentleman needs reliable transportation to replace his 10 year old vehicle with over 100k miles. He can afford the payments, but doesn't want to burden his younger wife with payments she ...
10
votes
3answers
2k views

I'm 29, single, and healthy. Do I need life insurance?

I'm 29, single, and healthy, with the hopes of someday--ideally within the next few years--getting married. Do I need life insurance? For what it's worth my employer pays a small policy that would ...
10
votes
4answers
2k views

Will says “divide estate equally”. Life insurance has one named beneficiary. Can proceeds be made estate property?

If a parent dies and leaves a will that divides the estate equally, but also leaves a life insurance plan that names only one child as a beneficiary, can the other siblings force the life insurance ...
9
votes
8answers
959 views

Is there a benefit, long term, to life insurance for a youngish, debt, and dependent free person?

Something that has been nagging at me lately. Let's take a person: 30 years old, US, non smoker, no significant medical problems No debt (of any kind, mortgage, student, or credit card) No plans to ...
9
votes
3answers
3k views

Employer wants a key man insurance policy on me, should I agree?

Friend is working for a small company as main person in charge of operations. The president is asking them to take out a key man life insurance policy on them. The benefit would pay out to the company....
9
votes
2answers
2k views

Does life insurance cover suicide?

No, I am not thinking about suicide, but I was wondering this as a curiosity question. If a person dies by an accident, they are covered by life insurance and their beneficiaries receive some amount ...
9
votes
2answers
348 views

Universal Term Life Insurance instead of Term Life Insurance?

Apparently Genworth has replaced their vanilla term life with a universal life policy ("Colony(sm)"). The agent says the other carriers are heading in this direction too. The premiums are equivalent ...
9
votes
3answers
348 views

Joint Life Insurance?

Is there such a thing as "joint" life insurance for two people that will pay the survivor should the other one die? In other words, I'd like to buy a policy for myself and my wife for say, $1,000,000....
9
votes
2answers
612 views

Comparing Life Insurance Proposals

I want to compare different types of Life Insurance in which a series of annual premiums are paid for a specific term. At the end of policy term, which may be longer than premium paying term, a ...
9
votes
3answers
180 views

Is there a service to find the best & least expensive term life insurance?

How do I find the best and least expensive term life insurance? I'd love to see a listing for life insurance like BankRate.com does for savings accounts and mortgage lenders. Anything like this out ...
9
votes
2answers
240 views

Are the AARP benefits and discounts worth the yearly membership cost?

When considering organizations like AARP, what are the factors that makes these types of organizations valuable to members? Our main interests is to obtain term life insurance. I am sure there are ...
8
votes
4answers
541 views

Does a stay at home mom need term life insurance?

I know the idea is to get life insurance on anyone who has a dependent so what about a family of three with a stay at home mom? I would assume the dependent would only be the child as I can continue ...
8
votes
3answers
2k views

Does life insurance cover one's funeral costs, or should I save for it separately? How much?

What is common practice? What does it usually cost? Should I be thinking about this?
8
votes
3answers
641 views

Married, 55, grown kids: Should I buy life insurance, or invest in stocks? The ultimate decision

Presently I am a married 55 year old man married with two grown kids. One of my term life insurance policies expires soon and they have offered me a policy that will never increase in price for the ...
8
votes
2answers
3k views

What will happen to this life insurance policy obtained just before a possibly terminal diagnosis?

A family member in his early 40s recently suspected he may have cancer due to digestive issues. A life insurance policy for $500k was purchased. A basic medical exam to determine eligibility was done. ...
8
votes
2answers
304 views

Is “simplified term life insurance” (i.e. instant buy; no examination) a good idea?

I'm planning to buy term life insurance. I'm in my mid thirties and my wife is in her mid twenties; no kids but we may have one in the next two years. Both of us are relatively healthy, aside from ...
8
votes
2answers
56k views

If you receive life insurance, does the estate have any claim to it? Do you have to use it to pay for debts of the estate?

If after someone dies, you receive life insurance as the beneficiary, is the estate entitled to any of that money? Are there cases where the life insurance money can be included in the estate and ...
8
votes
4answers
3k views

Timing on cashing out whole life policy?

8 years ago I was talked into a whole life policy. Big mistake, I know. Currently, the cash value of the policy is around 50% of what I've actually paid in premiums. I would like to cut my losses but ...
8
votes
3answers
2k views

What are the consequences of cashing out a whole life insurance policy?

My wife has bought a whole life insurance policy as an investment before we met. She is currently in her early forties and she has been paying into it for roughly seven years. I do not believe that ...
7
votes
2answers
4k views

How can you find out what life insurance a deceased person had?

So it seems like the way life insurance is supposed to work for a deceased person is that the beneficiary is supposed to somehow inform the insurance company of the insureds death (presumably by ...
6
votes
3answers
678 views

Is Cash Value Life Insurance (“whole life” insurance) a good idea for my future?

I sat down with an insurance representitive today and listened to their proposal regarding Cash Value Life Insurance (CVLI) and long term investing. I am a 36 year old guy recently married with no ...
6
votes
2answers
772 views

Are there benefits to purchasing term life insurance with an option to convert to whole life, and what type of consumers should purchase it?

Most of what I read says, "whole life insurance is not for you", but they don't elaborate much more than that. There's even less about term life insurance that has an option to convert to whole life ...
6
votes
3answers
1k views

Variable universal life insurance vs traditional long-term investments

I have been considering different ways to generate some returns on my money, rather than just having it sit in a savings account at the bank. My understanding is that the obvious first step is to ...
6
votes
2answers
1k views

Is life insurance linked to mortgage always a good idea?

My husband and I are 30 years old, have stable jobs, and earn roughly the same salary. We are buying our first house, with a 35% down payment. The monthly mortgage works out to ~15% of our combined in-...
6
votes
2answers
752 views

What is the simplest way to describe indexed universal life?

Indexed universal life seems to be pretty popular these days, but it also comes off as very complex with a lot of small print. Without getting too complex, whats the simplest way to describe what it ...
6
votes
2answers
553 views

Why would a life insurance exclude suicide for the first two years of policy duration only?

I'm currently reading terms for life insurance with survival benefit and investment. It's like you pay ten thousand USD each year and five years later you get back forty thousand USD (the four ...
6
votes
5answers
1k views

Whole life insurance as an investment vehicle

From everything I have read I still cannot be convinced of Whole Life Insurance but it seems to be the first thing any financial advisor is trained to sell. From what I read there are minimum ...
6
votes
4answers
287 views

Does this very cheap traveller insurance make any sense?

A local railway company partners with an insurance company and offers insurance policies as paid addition to railway tickets. A random monthly salary in this region is an equivalent of seven hundred ...
6
votes
4answers
758 views

Confused About Term Life Insurance / Mortgage Insurance

I'm looking for a term life insurance policy that will be gradually reduced in coverage amount over the life of my mortgage until it's zero at the end. The reason is that I want to have a consistent ...