OT: life insurance

[sherry7899]

We took out a twenty year term life insurance policy before our son was born. He turned twenty this year.

I knew the rates would go up after twenty years, but I just got the new rates. They are freakin obscene! The monthly payment for each of us went up TEN times as much! We will have to find a new company.

We were using Transamerica.

I am fifty and my DH is fifty five. Are we (pardon my language) just screwed?

Does anyone around our age have any advice?

No wonder there are so many commercials for companies for seniors.

Thank you,
Sherry

[prettyinpink]

I think the idea is that people would have enough saved up by then that life insurance wouldn’t be necessary. But I know that isn’t true for a lot of people.

[sherry7899]

Originally Posted by prettyinpink

I think the idea is that people would have enough saved up by then that life insurance wouldn’t be necessary. But I know that isn’t true for a lot of people.

I understand what you are saying.

[Leonana]

Ours just expired and went up too. We have USAA, my husband is a veteran. I was able to get the same insurance for him, at a more reasonable rate. Still a lot higher, but we can afford it, and half the price of our former insurance agency. I don't have life insurance on me, but I don't work outside the home.

[sherry7899]

Originally Posted by Leonana

Ours just expired and went up too. We have USAA, my husband is a veteran. I was able to get the same insurance for him, at a more reasonable rate. Still a lot higher, but we can afford it, and half the price of our former insurance agency. I don't have life insurance on me, but I don't work outside the home.

Thanks, Sherry. We do not have that option since neither of us are veterans.

[bzar]

buying life insurance for your dependent is useful if they are still in college and have tuition loans, or if they have dependents themselves, i.e., someone who is dependent on their income. the payout pays the beneficiary since the benficiary no longer has the insured (your son) to support them. in other words, if you're dependent on your son's income, then yes, it makes sense to have a life insurance policy on them.

then once you've decided to buy insurance, term life insurance (vs. whole life) is sufficient.
financial guru dave ramsey has good advice about life insurance for your kids:
https://www.daveramsey.com/blog/life...e-for-children

other financial gurus like suze orman and jane bryant have similar views on insurance.

[cyana]

We had a similar experience some years back and my teeth nearly fell out when I saw the new rates. What a flipping joke! And we were both healthy - no medical reason to justify those increases - we were just 20 years older. At that point, we just took the term life that was offered free through our respective jobs and didn't replace our private insurance.

Even the "special members only" deal for term life that is offered to members of our credit union is a joke. We agreed at that point it made more sense to add whatever we were paying in premiums to our savings/IRA's, etc. At least the money would stay in our pockets and would be there for emergencies.

[hdw]

Life insurance is for your dependents. If you don't have dependents, you don't need one. We bought our term life with the plan of cancelling when the kids are self sufficient. We picked term life since the are cheaper. Term life is not for long term. Life insurance is not for old people...

[adawn]

Around 2010-ish, when my dad was in his very late 60s, my parents debated keeping his life insurance policy. I'm not sure what type of policy it was. He was still working full-time out of the house and was expecting to work into his 70s (he was an independent wealth management/investment advisor, though originally an actuary). He was even delaying SS retirement until 70 since people on that side of the family tend to live very long, healthy lives.

My mom had already retired from her career around the year 2000 and they had enough money saved for retirement so that my mom would be fine if he died unexpectedly, but a life insurance payout if he died would help make up for the loss of earning years he was expecting to have well into his 70s. So they thought about whether to keep paying the increased premiums or not.

IIRC, the premiums went up, but it was still affordable since my dad was in good health. Plus, my mom had an admittedly superstitious feeling that if they didn't renew and then something bad happened to my dad and he died in some freak accident that she would forever feel responsible for his death because she jinxed things by not agreeing to keep the policy. (Barring a freak accident, everyone thought my dad would outlive my mom. It was a given.)

Anyways, they decided to keep the policy and kept paying the premiums and within a year or two my dad was diagnosed with pancreatic cancer, had whipple surgery, and died about 16 months later around age 70. He worked up until maybe the last 2-3 months before he died. (His choice to keep working.) He even drove himself to most of his chemo appointments. He had a strong constitution.

And the life insurance paid out of course following his death.

[Jennifer R]

adawn good story--it's always a roll of the dice one you get up in years. Do you support someone who will need the money? if not, no need.

But that was interesting about your mom--glad they renewed the policy just so she didn't guilt trip herself.