What kind of life insurance and how much? - GoFuckYourself.com

96ukssob · 07-12-2011, 09:08 AM

I'm 31 on Friday and decided its time to be a big boy and buy some life insurance... plus the way I party its probably recommended

My insurance agent (Nationwide) called and asked what I wanted by recommended term policy for 30 years, however that versus whole life I can not borrow against nor does it get any cash value.

When she asked how much I said probably $500,000 but she said that was a bit high. If I get hit by a train tomorrow, I want to make sure my house, cars and debts are paid, as well my gf is taken care of for a bit.

What do you have and/or suggest?

Sly · 07-12-2011, 09:17 AM

Recently I've heard rich people and financial advisors to the rich say that one should get a good life insurance policy because many you can use as a bank of sorts later on if needed. I don't know the details of that, just thought it was interesting.

And what qualifies as "good," I have no clue.

Barry-xlovecam · 07-12-2011, 10:51 AM

Take the difference in cost between the Term and Whole Life policy premiums and put it in a tax differed retirement account.

kbauerctu · 07-12-2011, 11:14 AM

There are two options to consider when choosing life insurance. Term and Perm. Term is obviously for a set amount of time. Once that term has expired you have to re-negotiate into a new contract at a higher rate since you are older. The rates will be the lowest under term. This method can not be used as an investment vehicle. (I think)

Perm/whole life insurance cost more, but your rate is locked. You also are allowed to invest money into this policy. The money you put in can be invested in stocks/bonds/mutual funds etc. This money can be taken out tax free. (This money might be borrowed can't remember)

Choosing the perm situation isn't for everyone. You should consult a financial advisory before making a decision.

I'm 27, with a kid on the way. I went with perm for various reasons that I'd prefer not to disclose on a public forum. But for me it was the right situation. It's a massive policy, but I want to make sure my wife and kids are taken care of.

If anyone wants to consult a professional for free, a good friend of mine is in the business. He can be contacted at [email protected].

Wizzo · 07-12-2011, 11:18 AM

Term is the way to go, take the difference from whole and invest in just about anything and you'll be better off.

MrBottomTooth · 07-12-2011, 11:24 AM

The insurance the bank offers on my mortgage and line of credit seemed like a good start. At least you will know your debts are taken care of right off the bat. Then you can worry about adding additional coverage once you shop around a bit.

07-12-2011, 09:08 AM	#1
96ukssob So Fucking Banananananas Industry Role: Join Date: Mar 2003 Location: If I was in your ass you'd know it Posts: 12,991	What kind of life insurance and how much? I'm 31 on Friday and decided its time to be a big boy and buy some life insurance... plus the way I party its probably recommended My insurance agent (Nationwide) called and asked what I wanted by recommended term policy for 30 years, however that versus whole life I can not borrow against nor does it get any cash value. When she asked how much I said probably $500,000 but she said that was a bit high. If I get hit by a train tomorrow, I want to make sure my house, cars and debts are paid, as well my gf is taken care of for a bit. What do you have and/or suggest? __________________ Email: Clicky on Me

07-12-2011, 09:17 AM	#2
Sly Let's do some business! Industry Role: Join Date: Sep 2004 Location: Austin, TX Posts: 31,337	Recently I've heard rich people and financial advisors to the rich say that one should get a good life insurance policy because many you can use as a bank of sorts later on if needed. I don't know the details of that, just thought it was interesting. And what qualifies as "good," I have no clue. __________________ Vacares - Web Hosting, Domains, O365, Security & More - Paxum and BTC Accepted Windows VPS now available Great for TSS, Nifty Stats, remote work, virtual assistants, etc. Click here for more details.

07-12-2011, 11:18 AM	#5
Wizzo 2011 GFY Hall of Fame! Industry Role: Join Date: Nov 2000 Location: Back in Texas! Posts: 15,224	Term is the way to go, take the difference from whole and invest in just about anything and you'll be better off. __________________ Looking for Opportunity!

07-12-2011, 11:24 AM	#6
MrBottomTooth Confirmed User Join Date: Sep 2009 Posts: 5,795	The insurance the bank offers on my mortgage and line of credit seemed like a good start. At least you will know your debts are taken care of right off the bat. Then you can worry about adding additional coverage once you shop around a bit. __________________ Get Paid Per Email Like The WEGCASH Days!!!!

07-12-2011, 10:51 AM	#3
Barry-xlovecam It's 42 Industry Role: Join Date: Jun 2010 Location: Global Posts: 18,083	Take the difference in cost between the Term and Whole Life policy premiums and put it in a tax differed retirement account.

07-12-2011, 11:14 AM	#4
kbauerctu Confirmed User Join Date: Sep 2007 Location: Bay Area, California Posts: 197	There are two options to consider when choosing life insurance. Term and Perm. Term is obviously for a set amount of time. Once that term has expired you have to re-negotiate into a new contract at a higher rate since you are older. The rates will be the lowest under term. This method can not be used as an investment vehicle. (I think) Perm/whole life insurance cost more, but your rate is locked. You also are allowed to invest money into this policy. The money you put in can be invested in stocks/bonds/mutual funds etc. This money can be taken out tax free. (This money might be borrowed can't remember) Choosing the perm situation isn't for everyone. You should consult a financial advisory before making a decision. I'm 27, with a kid on the way. I went with perm for various reasons that I'd prefer not to disclose on a public forum. But for me it was the right situation. It's a massive policy, but I want to make sure my wife and kids are taken care of. If anyone wants to consult a professional for free, a good friend of mine is in the business. He can be contacted at [email protected].