How important is life insurance to you vs cost and age

Discussion in 'Social Club' started by leasburg, Mar 7, 2018.

  1. leasburg

    leasburg Well-Known Member

    Jul 27, 2007
    South County MO
    I have 25 year old kid working with me spending 175 a month and we have been talking about it a lot. What are your thoughts on whole vs term and what you really need. I understand everyone's situation is different, but what's your take on it.
  2. WBF

    WBF Wolf Brook Farms

    Oct 25, 2013
    Don't forget about short and long term disability....

  3. leasburg

    leasburg Well-Known Member

    Jul 27, 2007
    South County MO

    Whats your thoughts on that?
  4. Woods

    Woods Cooyon, Back from NOLA

    Short term disability saved my butt years ago. I ended up in the hospital and out of work for 2+ months when my kids were young. Both are well worth it for the little money you pay. IMHO

    *Was not workers comp..
    WBF likes this.
  5. DCSarchette

    DCSarchette Well-Known Member

    Oct 6, 2016
    Bland, Mo.
    You can't get to much insurance on anything, says an under insured old man.
    tcwild, 170BC and WBF like this.
  6. Skduckhunt

    Skduckhunt Senior Member

    Dec 29, 2002
    St. Charles, Mo
    Short term disability saved my butt thru a shoulder and 2 hip replacements . my old company picked up the long term but I never used that. Avoid whole insurance. Buy the term insurance that you need. You can do better investing your whole insurance money than buying .
  7. WBF

    WBF Wolf Brook Farms

    Oct 25, 2013
    THIS ^^^^^^^^^^^^^^!!!!!!!!!
  8. Cook

    Cook Well-Known Member

    May 28, 2003
    Being single vs. having a wife kids plays into it also.
    jawesome357 and BarryG like this.
  9. booner

    booner Member

    Jan 21, 2006
    There is not enough info there on his situation to give a definitive answer. Lots of things to consider such as is he married, does he have kids, does he have any known medical conditions currently, how much debt does he currently have vs. savings/investments assuming he has some type of dependent or spouse, etc? Next you say he is paying $175/month but we don't know how much coverage that is buying. I realize that a lot of the questions can be somewhat personal and an Internet forum is not really the place to post it all, but generally speaking the whole purpose of life insurance is to replace income in the case of death or as others mentioned disability insurance. A starting point for life insurance is usually insurance to cover at least 10 years of wages, that number could need to be higher depending on a persons situation (number of kids, debt, age, etc.). Also generally speaking Term life insurance is almost always the best option as far as cost vs coverage.

    There is lots of other things to discuss, but that's my take on the basics and a starting point. The guy working for you should probably sit down with a professional to discuss his situation and his options, but he needs to make sure they don't push one type of insurance because of the commission they receive and certainly make sure they are not an agent who promotes life insurance as an alternate "investment" option for retirement or wealth building. It's never proven to be a good investment and should be utilized as its intended "insurance" in the event of an unforeseen/unanticipated accident or death.
  10. 421sd

    421sd Part-time malcontent

    Dec 23, 2012
    Ozarks Plateau
    We have several term life policies and D&D for me and the wife. If one of us leaves this world the other will be financially stable. No brainer to me...
    Pancho and WBF like this.
  11. farmnhunt

    farmnhunt Well-Known Member

    Jun 6, 2006
    I'm starting to lower mine each year as kids get out on there own and I'm paying off debts. You need enough term insurance to pay off major debts and get children through college, if that's the plan. My wife works so I assume she can meet her bills if school expenses are taken care of and home and farm are debt free. Another factor is you and spouses retirement plans, can she draw yours if something happens to you. I had 5x my salary but tapering down. I'm at 3x now but last boy graduates in May and farm will be paid off in a year and a half, house is paid off. Will drop every year until I get to 1 1/2-2 x salary at planned retirement age. I have a good retirement and a 401k with about 5x salary in it now, Wife would have access to 401 and 1/2 of my retirement. Plenty to take a good long time trying to find a guy as good as me.
    Multiples of salary are a better measure than just dollars because everyone is different. I think I have a little more than I need now but its not that high.

    My Father died when I was a kid and didn't have any above final expenses and pay off some short term debt. I don't want to do that to my family.
    Skduckhunt likes this.
  12. venatic

    venatic ΜΟΛΩΝ ΛΑΒΕ

    Whole life is like putting your money in a hole.
    WBF and jehrbo like this.
  13. Steelman

    Steelman Well-Known Member

    Dec 29, 2009
    I have life insurance through work and a separate $100K term policy. The cost of the separate policy is $53 per month. My kids should hope I go before I retire, they will be much better off:D
  14. fullfan

    fullfan Active Member

    Feb 23, 2016
    you should have done it 5 years ago when you asked me to refer you to my guy then ignored him. Now it will be more expensive :banging:
    BackyardBandit likes this.
  15. techteacher

    techteacher Land buying addiction Lifetime Supporting Member

    Sep 11, 2009
    Don't get so much you are worth more dead than alive. :elmer:I have some through work but if something would happen all debts would be paid and kids college. I rather invest so they can sell my crap rather than pay for Something I may need. If I owed a lot or my investments weren't way in the black I would need more insurance. My wife could sell my assets and have way more than most insurance policies.
    CRE10 likes this.
  16. techteacher

    techteacher Land buying addiction Lifetime Supporting Member

    Sep 11, 2009
    Whole life is stupid.
    WBF and jawesome357 like this.
  17. MeatHunter

    MeatHunter Just Livin' The Dream!!!

    Dec 7, 2011
    My parents took out a whole life policy on each of us kids shortly after we were born.......we didn't know anything about it until we were all 3 over 25.........nice surprise actually.......$50K on each of us.......
  18. BackyardBandit

    BackyardBandit Don't mind me

    Jan 12, 2012
    West St. Louis Co.
    Lots and lots of variables..
    I personally own both permanent and term life insurance.
    Disability insurance is the most overlooked insurance out there because nobody is ever going to become disabled. It’s always someone else who will, never you..
    Everybody knows they are going to die, so life insurance is widely accepted.
    Long term disability most everyone working age needs, short term disability should be a goal to self insure those 3 months or so to avoid an unnecessary premium payment. Keep putting that saved premium payment into your safety reserves.
    Dafish likes this.
  19. bluecan

    bluecan Long time listener, first time caller

    Life insurance benefits those you leave behind, so you need to evaluate what would happen if you were to drop dead tomorrow, and buy accordingly to have that insurance take care of what/who you want taken care of.
  20. bajabill

    bajabill BDR529

    Feb 16, 2012
    East Central MO
    I dont really value my life insurance, my wife does. :elmer: