Life Insurance, etc. - Posted by Jimmy
Posted by Jimmy on June 06, 2007 at 08:08:41:
obtaining health insurance as an individual is an expensive proposition. I’ve been on that track for 15 years or so. just a cost of being independent. if your family’s coverage will cost you $1000 a month, then you need to be certain that your REI acticvities can cover your nut (including the $1000). and don’t expect that $1000 numbeer to stay there. I get premium bumps once or twice a year.
as for life insurance… in my 20 years of practicing trust & estate law, I had this conversation with hundreds of clients. and I was constantly in conflict with life insurance agents.
if you need for death coverage can be measured by a period of time, go with term. I carry two term policies that will run out when my youngest kid is about 22. that gets them out of collge, hopefully. then they are on their own. my wife’s need for more enduring coverage will be addressed when the maturity dates are on me. as I get into my late 50’s, I will assess the situation again. by then, I may have NO need for insurance. I won’t know until I get there.
and one more thing: most term policies don’t “expire” at the end of the term. you have the option o converting them into permanent policies, with much graeter premiums. if you want to, you can start paying more money into an existing term policy, which will extend its life. this is a great idea for someone who is no longer insurable, and needs the coverage to extend out a few more years.
there are certain circumstances where term policies are not the right play. if the need for insurance is PERMANENT, then the insurance policy needs to be permanent. this would indicate whole life, universal life or variable universal life. for example, if a client is facing a $5,000,000 federal estate bill, and the client does not want his kids to have to liquidate assets to pay it, a VUL policy is probably the answer (a second-to-die policy is the common tool here).