I have a friend who has been sick for a long time, smokes, and is a diabetic. His premiums have been creeping up the last few renewals after a few hospital stays. He is currently living in Iraq, he does not have internet, so I told him I would ask a bunch of internet strangers for recs so he can switch companies to save money. He doesn't care if he ever collects any money should something happen to him, he just wants to save a few bucks on his premiums because he feels like he is over paying even though he has no clue what coverage he has. Thanks in advance.
How much do you pay for Life Insurance ?
- Thread starter catsfanbgky
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Don't know if this is serious, but first of all, premiums don't "creep up" because a few hospital stays. Also, he will never collect a dime "should something happen to him". His beneficiary will.
I get the OP, but seriously, I have loaded up on life insurance because my wife is soooo bad with money that the kids would starve if they didn't have a sudden windfall. At least they'll have a good head start if I kick it early.
I hope you didn't make your wife primary beneficiary then. She will just blow it if she is that bad with money. If your kids are less than 18 you can't name them either.
Look up Irrevocable Life Insurance Trust (ILIT).
Regardless of your net worth there is value in owning life insurance. Unless of course you enjoy giving your money to the government via taxes. And the crap policy of 1-2 times salary you get at work usually isn't enough nor can you take it with you.
But Paddock posters don't die, they multiply.
Maybe bad isn't the word, just clueless. It's partly my fault as I've always just taken care of it. She wouldn't know what to do.
I don't care if you have 10M in the bank, life insurance has a role in proper estate planning that reduces your tax liability for your heirs.
But hey your choice. Give more of your money to the government, they will gladly take it.
Or you are a single 22 year old male with $100 to your name.
Nope, single in my 30's. Wouldn't be giving a single penny to the government if I died. Please explain why proper estate planning would include life insurance for me?
^
The proceeds from life insurance can be set up in trust so that they are not part of a person's estate and thus not subject to death tax. However, the first $10,900,000 of any estate (husband & wife each get to give $5,450,000) is already not subject to the the death tax. Thus, you have to be very rich (estate over $10.9 million) to take advantage of this form of estate planning.
If you are single and have not fathered children, you likely don't need life insurance. Maybe if you have a special needs family member that is relying on you for future care.
The proceeds from life insurance can be set up in trust so that they are not part of a person's estate and thus not subject to death tax. However, the first $10,900,000 of any estate (husband & wife each get to give $5,450,000) is already not subject to the the death tax. Thus, you have to be very rich (estate over $10.9 million) to take advantage of this form of estate planning.
If you are single and have not fathered children, you likely don't need life insurance. Maybe if you have a special needs family member that is relying on you for future care.
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I'm well aware, just curious how many clients insurance junkie was dealing with that had estates this size where he was "saving them on taxes".
FWIW, the policy I got in my late 30's cost me about 20% of the one I got in my late 40's. For the same amount of life insurance. If you've got little kids, are still young and relatively healthy....lock in a 30 year policy sooner rather than later.
Back before the fiscal cliff deal of 2013 that kind of estate planning made more sense. The exemption amount was only around $3.5 million and it was not portable to the spouse. You are right that tax planning is not much of a selling point anymore for life insurance.
Well my plan did not go too well. Even a insurance guy did not get it. I am fully aware hospital stays have no bearing on cost. I thought, the living in Iraq, no internet, did not care about coverage would give it away, the doesn't care if he collects when he dies was just the icing (some idiot really took that and gobbled it) as a Mock thread for the insurance one. Why so serious ???
This. I was 39 a couple of years ago and really wasn't thinking much about it. Old gal pulls out the comparison sheet for purchasing as a 39 year old and then as a 40 year old the next open enrollment. I started signing lines.