How much life insurance do I need?
Posted in Life Insurance Questions about 1 year ago, 6 replies
submitted by Jeff Andersen in Jacksonville, Florida
I agree with Denise. Do not just sign up for Term on a Website for what you think you need.
Consult a professional.
And seriously, you should take a look at WL.
Consult a professional.
And seriously, you should take a look at WL.
I am an insurance agent and my advice is buy term. Whole life insurance is very expensive b/c there is a "savings" attached to it. If you would take the savings portion and invest it in a seperate account you would end up with a lot more money. And, if something were to happen to you guess who keeps the savings portion? The insurance company, of course. Agents make a lot of money off of selling whole life policies.
How can you without even knowing his situation just offer term? Do you know his monthly expenses? Do you know his retirement account balances? Do you know what his risk tolerance is? NO you don't!
By the way...the companies we represent pay us not our individual clients...that is NOT why Whole life is more than Term...Whole life offers much more flexibility than ANY term and invest the difference ever could over the long term...first and foremost, consult someone you find to be trust worthy and listen to their advice and then make a decision that is appropriate for you and your family.
Guarantee me you will not live past the age you will be with a term policy and then I will say good choice, but if you think you'll be around longer, then bet me you will be in better shape than you are now, because either way if you live insurance will cost you more later.
By the way...the companies we represent pay us not our individual clients...that is NOT why Whole life is more than Term...Whole life offers much more flexibility than ANY term and invest the difference ever could over the long term...first and foremost, consult someone you find to be trust worthy and listen to their advice and then make a decision that is appropriate for you and your family.
Guarantee me you will not live past the age you will be with a term policy and then I will say good choice, but if you think you'll be around longer, then bet me you will be in better shape than you are now, because either way if you live insurance will cost you more later.
submitted by Brian Todd in San Ramon, CA
@ June 07, 2009 - 11:59 PM
Woah.
The savings portion of a Whole Life contract, the cash value, becomes part of the death benefit. If something happens to Mr. Anderson, his heirs get the death benefit AND the cash value.
As for the "Term and invest the difference" retirement strategy versus the Whole Life retirement strategy, read here:
http://www.theroundtable.org/topics/show/3618
Mr. Anderson owes it to himself to consider both options and see what fits him the best.
The savings portion of a Whole Life contract, the cash value, becomes part of the death benefit. If something happens to Mr. Anderson, his heirs get the death benefit AND the cash value.
As for the "Term and invest the difference" retirement strategy versus the Whole Life retirement strategy, read here:
http://www.theroundtable.org/topics/show/3618
Mr. Anderson owes it to himself to consider both options and see what fits him the best.
Oh and by the way...if you plan on retiring by 65 and making the assumption you want to support your family off your current income until then you need $2.2M just to offset the amount you would create as income until 65 if you happened to die tomorrow. That's also assuming no increases in income etc.
5-10 times amount is BS if you look at realities of life. Yes 750K sounds like alot for a one time deal but you have to figure this is your family we are talking about and never mind the emotional loss, the economic loss will be far greater over the long run.
5-10 times amount is BS if you look at realities of life. Yes 750K sounds like alot for a one time deal but you have to figure this is your family we are talking about and never mind the emotional loss, the economic loss will be far greater over the long run.
Denise