If they am retired and make enough to live on and have enough saved to live off it for say 6 to 7 years, should they still have a life insurance policy?
2007-01-16 01:21:10 · 9 answers · asked by Anonymous in Business & Finance ➔ Insurance
Base on your scenario, of course not. They should be allocating more money toward retirement. If you still need life insurance when you retire, maybe you should get at least a $10,000 policy and at most a $20,000 policy.
Most people cancel their policy when their mortgage is paid off. There should be no reason why you still need life insurance at that time since no one is dependant on your income.
2007-01-16 15:32:31 · answer #1 · answered by Anonymous · 3⤊ 0⤋
There isn't close to enough information to give you a good answer here. My best answer is don't rush into anything. Take your time to figure out your best option. Suze uses a one-size-fits-all approach and I'm guessing your doctor to do that. I would also recommend meeting with an independent insurance agent to help you with this decision. To answer your questions a bit. Cash value can't be put into a term policy but can't be used to purchase it if done correctly. Depending on your age the biggest caution I would give you against term is it can be expensive as you get older. Also, do you know when you'll die? If you do make sure it's within the term of the insurance. Permanent insurance, when set up properly, is an extremely strong financial tool. Please let me know if you have any questions.
2016-05-24 23:14:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
This is hillarious. Most people's opinions on life insurance are WAY out dated. First of all, you should ONLY buy term insurance. This is because no matter how much money you funnel into a cash value policy you will NEVER EVER get it back. In order to get it, they charge you interest, and if you don't pay it back, they just reduce your face amount. If you die with cash value still in the policy, the company pockets it. If you dont believe me, read your policy. Only buy term.
The only reason to need insurance for your whole life is if you didnt plan on retireing in the first place. In other words, you can cancel your life insurance policy once you have enough cash saved to cover an untimely death.
"Whats wrong with your life insurance" Great book for those that dont believe me.
2007-01-16 13:15:14 · answer #3 · answered by Arcangel005 2 · 0⤊ 1⤋
Your daily living expenses have nothing to do with the insurance coverage you have.
That is terrific that you have enough saved for & retirement coming in to satisfy your needs, but your insurance has a completely different function that does not have to do with that income. It is meant for your loved ones that have the responsibility of burrial & other expenses after death. In addition, if you have anyone else that relies on your income, then they will benefit from they insurance too since you will no longer have that coming in.
Lastly, life insurance is generally tax free & by passes probate for the beneficiary. Unlike money you have in a checking & savings account.
2007-01-16 04:57:04 · answer #4 · answered by ricks 5 · 0⤊ 1⤋
If you are certain (100% certain) that you have enough savings to pay not only your current bills but bills you may have in the future - like medical bills, both from hospital care and more long-term care after and injury or illness, then you should CONSIDER getting rid of your life insurance. Chances are, however, when you do pass away, you will leave some bills behind unpaid. Your creditors will come after what is left in your estate to collect.
Go talk to a financial professional to discuss all your options.
Good Luck.
2007-01-16 06:25:37 · answer #5 · answered by insuranceguytx 5 · 0⤊ 1⤋
OK, you're doing this backwards. When you get life insurance, you PICK which kind of life insurance you get, by FIRST determining what exactly you want that life insurance to do for you.
When it no longer meets that need, or when that need no longer exists, you have to reassess your situation, and determine, ok, what NOW do I want life insurance to do for me.
When there isn't a product out there, to meet YOUR NEEDS, at an affordable price, well, then you don't buy life insurance.
Your question does NOT show a need for something that life insurance can fulfill. It's NOT a savings account!!!
2007-01-16 02:05:03 · answer #6 · answered by Anonymous 7 · 0⤊ 1⤋
Who is benefitting from the policy now?
If that need is no longer existent now or will not exist in 6-7 years, then you don't need the coverage.
Depending on your age, you can look to sell your policy via a life settlement rather than just letting it lapse
2007-01-16 04:05:23 · answer #7 · answered by Anonymous · 0⤊ 1⤋
A person should never get rid of a life policy that they have been paying into. It's not for you, but for who you leave behind, to pay for a funeral, pay off any bills or debts after your death. There's no harm in keeping it but more harm in getting rid of it.
2007-01-16 01:32:06 · answer #8 · answered by JB 1 · 0⤊ 1⤋
YES EVERYONE SHOULD HAVE LIFE INSURANCE. TIL THE DAY THEY PASS AWAY. IT WILL HELP WITH THE BURIAL. AND YOUR FAMILY WON'T HAVE TO USE THEIR MONEY THAT THEY WORK SO HARD FOR.
2007-01-16 01:32:06 · answer #9 · answered by misty blue 6 · 0⤊ 1⤋