| Life Insurance-necessary evil? |
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levibo
New Member
Cash: $ 1.00
Posts: 4
Joined: 19 Jul 2005
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| Life Insurance-necessary evil? |
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I'm about to buy life insurance in the value of one million...Stuffs not cheap, but should I shop around or just trust the New York Life agent who has spent several hours with me? I'm 46 and think I should leave my youngish family something if I die.
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Fri Feb 17, 2006 5:51 am |
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muneepenee
Senior Member
Cash: $ 48.60
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Joined: 15 Jan 2006
Location: Nu Braunfelds, Tex
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1. never!
the agent liv on kommissions. its in HIS interest tu sell yu the most expensiv thang him kan find. Him will sell yu the rong tipe, sell yu much more than yu "need", probablee from rong kumpanee. him sell wot pae him most.
2. wi du yu wanna bi? feel giltee? did him plae on yer gilt. Iz theer a reel need?
3. the purpus av inshuer is tu buffer a loss. If yu die wot happen?
du yu hav dependents hu depend on yer inkum?
4. how much? agent will tri tu sell the max him kan.
yu kant spekt it tu pae for evreethang forever. Em left behind must lern tu liv without yu after a wile. The inshuer "indurstree" hav a rule-av-thumb
em sae bi 5-yeers inkum. Yu dont hafta let it rule yu.
5. tipe av inshuer...agent sell tipe with max kommission. him wanna sell "hole life"...it kost 2 or 3 times wot yu kan get. part av that is his kommission, part is kaus it inklude "investment" with inshuer. Bad idea. If yu want inshuer, bi inshuer.
if yu wanna invest munee, duit elsweer.
6. Theer R bout 2000 inshuer kumpanees. Many sell without agents.
theer R also "independent" agents hu will sell stuff from NE kumpanee
(sum agents R wed tu 1 kumpanee).
7. wons yu bi from an agent, him never go awae. 1 or 2 times a yeer him will kall for a "freendlee chat", & bi the wae, tri tu sell more stuff.
8. me standard advies...gotu library, find book. Kant find it? ask librarian.
no help? get a dummees book.
----------------
in other werds, look b4 yu leep
www.munee.info
be true tu self (Shakespeer)
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Fri Feb 17, 2006 12:55 pm |
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coaster
Senior Member
Cash: $ 881.10
Posts: 4343
Joined: 11 Oct 2005
Location: Wisconsin
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I don't think life insurance is inherently evil -- it's just a product some need and some don't. Unfortunately, life insurance agents have a reputation for trying to sell their product to any and all, whether they need it or not. Since your motivation is to leave something to your family if you die, then yes, life insurance is a good idea for you.
The questions are what kind of life insurance and how much. I suggest that the amount you're considering is too much. Instead, decide how many years' income you want to replace, and which financial goals you want to achieve. For example, if you want to give your family five years of your income, plus college education for your kids, just add that all up. Remember, the income is net of taxes since life insurance benefits aren't taxed.
What kind of insurance? Life insurance agents like to sell whole life because the commissions are much higher. If you're a person who doesn't need the enforced savings component of a whole life policy, I suggest you get term insurance. Yes, the premiums will go up as you get older, but compare what you'd pay to be insured as long as you plan to have insurance. Take the lower cost product if you're only looking to be insured, not to build cash value. Usually it's cheaper to buy term insurance, and if you want to save money, put the difference in some investment of your choice.
Bye Bye Bums
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Fri Feb 17, 2006 2:14 pm |
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JCook
Full Member
Cash: $ 11.20
Posts: 56
Joined: 24 Jan 2006
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If you do not have enough in investments and/or savings to provide for those you leave behind you do need insurance. As you get older, your investments grow, your debts are payed off and the children leave the house you should no longer need insurance.
Make sure you get enough term life insurance to provide for your family. Just do the calculations to see how much you need for them to invest it and live off of the earnings.
Do not buy whole life insurance, it is a bad investment. Term insurance is very cheap and you can invest the rest yourself.
http://www.financeforfamilies.com
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Tue Feb 21, 2006 2:55 am |
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