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When to quit term life insurance and disability

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When to quit term life insurance and disability

Old 01-03-2019, 08:25 PM
Derrick Reynolds
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Originally Posted by jasper711 View Post
If the actuaries calculate our continuing subscription based on some value from past terms, there COULD be an advantage to keep this going personally (if we don't need the funds). No earthly purpose for this in our lifes, it would be only to boost the estate by $250k at end of life. Premiums are capped at 6% raise, per year, so I need to do some math.

Interesting to think about, but I am getting a headache .

There is the possibility of a slight rule change cancelling the 6% cap, and the whole scheme goes up in smoke.
The math can't possibly be that hard. If your cap on increase is 6% per year, I would only need to know how old you are what is the premium per month/quarter/year, and what is the death benefit to do a discounted cash flow analysis assuming different life spans. It's very straight forward math that you can do yourself if you know the basics of how to use a spreadsheet.
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Old 07-11-2019, 07:04 PM
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500k insurance for a little over 100 a month at age 55? And he rides bikes and 4 wheelers like a mad man? Even if he was Marvin Milktoast, he insurance company would LOVE for him to cancel it. Not wishing any ill for sure but get real.
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Old 07-12-2019, 06:28 AM
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Math, smath......I love you 'calculators'.....getting out your slide rule.predicting the future.......no one EVER has enough money, especially a spouse whose husband just died......why go into assets to pay for stuff when you can keep your estate whole and use tax free money to pay for things, expected and unexpected......are the premiums going to break you ?.........too bad you didn't buy dividend paying whole life insurance.....you would have no payments...you would have an increasing death benefit....you would have at least double the money you paid in on premiums......you would have earned about 6% tax free.........you don't solve a permanent problem with a temporary solution.........very smart, wealthy people own whole life insurance for very good reasons.

If the reason you bought the term no longer exists, get rid of it........the question then becomes......are there reasons to have life insurance now ....."Hey I'm all set, I gots a mill in our pension plans , no debt, and pulling in 70 k a year now"........talk to me in 20 years from now and let me know what kind of great financial shape you are in...........there is alot that can happen that can torpedo your financial ship.......don't be too cocky and smug and think that life insurance has no place because you are well off..........it can be the one and only lifeline that can save the day.......IMHO.

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