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Posted by tendiamonds on 2007-07-03 07:50:27 +0000

The Pants and I did this recently. We chose to go with significantly less than $1M a pop. Sit down with an agent and go over the numbahz. We came up with our numbers based on income, mortgage, daycare, college, etc... No idea on the mutual funds.

Posted by Chopper on 2007-07-03 09:50:48 +0000

While I profess to be a Bowie expert, I happen also to be an attorney and have done way to many wills/trusts/estates for people. Actually, I love doing it - favorite part of law for me. Anyway, I'd be happy to discuss all this and all your options with you and the Mrs. Chopper a/k/a Rich

Posted by tgl on 2007-07-03 10:27:11 +0000

Judging by The Son's verbal skills, you'll be shelling out for college before he can drive. We might have had quoted $1M/$500k, but dropping the "payout" sounds reasonable. Our Financial Advisor friend didn't seem phased by the figure. The idea is that the monthly premiums might be better sent into a taxable account instead of on this shoddy, flimmy-flammy, Ponzi scheme called "Life Insurance".

Posted by tgl on 2007-07-03 10:28:00 +0000

No need to Rosetta! Thanks for the offer. Wills etc. are still needed. ...and a Homestead Act filing for the house. I'm not sure I need it, but it sounds fun.

Posted by MF DU on 2007-07-03 10:41:14 +0000

wow - thanks for the heads -up. Very interesting...

Posted by ConorClockwise on 2007-07-03 10:43:14 +0000

I'm not saying anything groundbreaking, but life insurance is all about the middle-man. If they didn't make money on it, they wouldn't do it. Ideally you wouldn't cash in on the policy so any $2k investment is infinitely better than a premium, but substantialy riskier.

Posted by Chopper on 2007-07-03 11:11:22 +0000

Rosetta?

Posted by tendiamonds on 2007-07-03 11:36:19 +0000

This is true about all insurance. Insurance is a combination of gambling and safety. The insurance company is gambling that they will pay out less than they take in/invest. The consumer is gambling that they will collect more than they pay. The safety is the important part, since I can get an insurance policy today, and collect on all of it tomorrow, as opposed to just how much I've paid in thus far. It's like the difference betwixt vacation time and personal time... I have to earn my vacation time, like an investment, but I can take all of my personal time starting on January 1 every year... maybe I'll start doing that... January 2, actually, since January 1 is a holiday... and then the four days (we get three personal days) in a row are guaranteed to combine with a weekend! So I can have 6 days off with no vacation time to start every year! Woo Hoo!

Posted by tgl on 2007-07-03 11:46:12 +0000

Rosetta, short for Rosetta Stone. When revealing your (or another's) identity on the 'board it's a "Rosetta".

Posted by tgl on 2007-07-03 12:46:28 +0000

The premium is more like $900 per year. I think our coverage amount is way overblown.

Posted by tgl on 2007-07-03 13:14:09 +0000

I take it you took the insurance. After filling out the coverage worksheet, and assuming that the premiums a sorta linear with the coverage, I think I'll join this Ponzi scheme.

Posted by ConorClockwise on 2007-07-04 01:21:48 +0000

The main reason I had car insurance when I had a car was because I lived in states that mandated automobile insurance. It binded me to more bureaucracy, read: middlemen, and less efficiency (MF DU, can I get an 'Amen'). This is the reason Massachusetts's forced health care will fail. It is still legal to be without life insurance in Massachusetts, and odds are one has made a better financial decision not to pay for it.

Posted by MF DU on 2007-07-04 07:09:04 +0000

Amen.

Posted by tendiamonds on 2007-07-04 10:49:13 +0000

It's about cost/benfit aka bang/buck aka !/$. Most of the time, you can invest better in the long run than a life insurance policy will pay out. Life insurance isn't an investment policy, it's a contingency for worst case scenarios. Auto insurance isn't for you, it's for the guy you run over. Ask the C-Biscuit who ran me over. Mandating that the populace purchase a product from the private sector is corporate welfare more than it is social protection. If it's something that the government thinks we all should have, it should be socialized. It should also be made illegal for the private sector to compete with said socialized service, so that the lawmakers will be forced to legislate protection that is up to their standards for themselves.

Posted by tommy on 2007-07-04 11:53:57 +0000

Amen.

Posted by tgl on 2007-07-05 08:54:23 +0000

Amen: (break) Life insurance isn't an investment policy. If you invest your premiums instead of sending them to Snoopy et al., then drop dead at the end of the coverage period, your survivors are going to wish you had chosen Snoopy. An example: Assuming $100 per year premium for $100,000 of 20 year term life coverage: $100,000 for your survivors. $100 compounded annually @ 10% for 20 years: $6,300 for your survivors. Sure you can do better than 10% if you're watching the market every day, but that will only increase your chances of dropping dead from stress... but if you don't drop dead, you've got $6 grand to spend at http://turntablelab.com. I think I'm joining the ranks of the life insured.

Posted by MF DU on 2007-07-05 10:00:31 +0000

I need to post another redundant AMEN. Sorry.

Posted by tgl on 2007-07-05 10:08:19 +0000

BTW: The new spam filter will stop dupe posts, that might not be a good thing.

Posted by MF DU on 2007-07-05 10:13:04 +0000

not a good thing for your amusement of my short-sightedness? ;)