Policyholders question if existing life insurance is sufficient
14 posts across 5 communities in the last 60 days; 43% from r/Insurance.
“I have a whole life policy with $250,000 death benefit. I’ve been paying on it for about 8 years. I got talked into it by my financial advisor. I should have educated myself more before doing it. Premiums are about $340 a month. My cash value right now is around $25,000. The…”
“My wife and I are trying to get life insurance sorted out in the next month or two but when I started putting the numbers together, I realized I actually have no idea how much coverage we need. In our case, weve got a mortgage, some debt and a toddler so I keep thinking beyond…”
“I am a teacher and want to teach my students about how life insurance works. Term insurance is easy but whole-life seems like it has a lot of variables (not variable-life ha ha). I have tried to ask agents these questions but they want to turn around and sell me insurance or…”
Multiple users are evaluating their current life insurance coverage, particularly after having a child. They’re considering whether to purchase additional policies and inquiring about the portability of employer-provided plans. One user also wants to understand the implications of selling an existing policy.
SOURCES (14)
“I am a teacher and want to teach my students about how life insurance works. Term insurance is easy but whole-life seems like it has a lot of variables (not variable-life ha ha). I have tried to ask agents these questions but they want to…”
“typically 30 years? heard that you pay around $50 a month each and your family would get $1M if you pass away within that 30 year window. do you all have that to protect your family from an unexpected accident? submitted by /u/Important_Bat7919 [link] [comments]”
“I think a 1 million dollar policy per person would be okay? I know this is super complicated and subjective, but many you could tell me 3-5 places online for a quick quote? What would you recommend. I saw Pacific Life on some lists but then noticed it was not doable online. Are most not online? submitted by /u/Standard-Top-5942 [link] [comments]”
“I have a whole life policy with $250,000 death benefit. I’ve been paying on it for about 8 years. I got talked into it by my financial advisor. I should have educated myself more before doing it. Premiums are about $340 a month. My cash value right now is around $25,000. The cost basis is around $35,000. I’m really sick of paying $340 a month towards it and I still have another eight years before my cash value will equal my cost basis. I am considering switching to a term policy. I am approved f”
“I approached this with: A) If I pass, how much does my wife and family need to replace my income until the kids were out of the house; B) 10-12x my salary. From that lens, $5M, 20-25y term is what I would have gravitated to. I did not consider retirement because I already had that foundation building as a separate bucket.”
“I like whole life as a source of liquidity, but it doesn't seem like your policy is building cash value very quickly. There may be better options. If I were you, I'd ask for an inforce illustration to see what it looks like if you continue doing what you're doing. If the annualized return on future premiums to future cash value growth is not at least 3-4% over the next 20yrs it's probably worth exploring other options. If it does reach that level, then considering how you can bes”
“I tried to look for some term life insurance and one company quoted me for $80/mo for $200K policy. Im in my mid 40's. Is this a good price? I see some for 500K and 1M policy, why was i not quoted for that rate? submitted by /u/Intelligent-Result-6 [link] [comments]”
“Foreign national currently living in the USA: I'm trying to understand whether a simple life insurance policy is enough for an NRA (non-resident alien according to domicile test) with US-situs investments (over $60k in stocks, ETFs, etc.) to "protect" against the feated US Estate Tax (up to 40% of all assets held in the country upon death), or if life insurance proceeds on the life of a NRA are generally treated as well as US property for US estate tax purposes. So, for example, if”
“Foreign national currently living in the USA: I'm trying to understand whether a simple life insurance policy is enough for an NRA (non-resident alien according to domicile test) with US-situs investments (over $60k in stocks, ETFs, etc.) to "protect" against the feated US Estate Tax (up to 40% of all assets held in the country upon death), or if life insurance proceeds on the life of a NRA are generally treated as well as US property for US estate tax purposes. So, for example, if”
“Foreign national currently living in the USA: I'm trying to understand whether a simple life insurance policy is enough for an NRA (non-resident alien according to domicile test) with US-situs investments (over $60k in stocks, ETFs, etc.) to "protect" against the feared US Estate Tax (up to 40% of all assets held in the country upon death), or if life insurance proceeds on the life of a NRA are generally treated as well as US property for US estate tax purposes. So, for example, if”
“My first child is due this fall and I'm finally getting around to life insurance. Every calculator gives me a different number and now I'm not sure what's realistic versus overkill. How did you decide? submitted by /u/Head-Calendar-2219 [link] [comments]”
“My wife and I are trying to get life insurance sorted out in the next month or two but when I started putting the numbers together, I realized I actually have no idea how much coverage we need. In our case, weve got a mortgage, some debt and a toddler so I keep thinking beyond just paying off the house. Theres daycare, school, all the random costs that add up over the next 15-20 years and just making sure if any emergency happened, the other person could handle everything. Is there a formula tha”
“had a child recently. and I have a ~500k policy through my employer. Do I need something additional, if the policy is ”portable”? I believe if I leave the job, im able to keep the policy if I continue paying on it. Im just curious if that’s enough. my wife works, also has a policy. submitted by /u/Impressive-Peak-6596 [link] [comments]”
“There have been a lot of commercials from companies offering to buy you life insurance policies. I'm 68 and have a $250,000 policy. Can someone explain what this involves and the repurcussions of the offers. Would I be able to purchase another policy, would I have to continue to pay the policy I sold? submitted by /u/MrBaseball1994 [link] [comments]”