.
.
2014 920/SHO
Originally Posted by yatesville88fan
save $200.00 get killed in a car wreck ! Great plan BUT it's your money your plan your life
What does this have to do with insurance for a child???
I could die in a car wreck and have a million dollar policy on my child and they would get nothing.
My older sister was a pediatrician. She strongly recommended getting our children a whole life policy when they were young because if they later developed any type of serious illness later they would be unable to afford it. I got both of my kids a $100K whole life policy which was not very expensive and turned it over to them when they graduated from college. They have continued to maintain those policies as the annual rate is locked in and they continue to add value. Term policy premiums continue to rise and when you drop the policy you walk away with nothing - it's like renting a policy instead of owning one.
and he is right!
Check your company. Get enough to cover if something terrible happens. 10k is prolly under a dollar a pay check
but it is also a paid up $50k policy in 15 years, you would have 12-13k into account it with cash value. The health change and you are never age zero again for is a consideration. There are better places to buy life policies than SF
2023 BassCat Sabre FTD
2023 175 Pro XS
When my twins were born we bought a 20 year level term policy for my wife to replace her income in case something happened and I needed to pay for day care, etc. Her plan included a 10k rider for each of the kids. The riders aren't to replace income. They were essentially burial insurance. Gruesome thought, but pragmatic. Wife and I each have a small whole life policy that we view as burial insurance. As the various work provided insurances and term policies we have in place expire, the whole life will remain in retirement to cover burial costs.
If we could do it over again, would probably buy each daughter a small whole life policy for the same reason. Get it cheap when they're young, then let them decide what to do with it once they are old enough. Big picture would not really have cost much and they would not have to worry about underwriting later on.
Agree with investing the difference between level term and whole life. We've done that for close to 35 years and has added a pretty good bump to net worth. Problem is most folks don't have the discipline.
If you do a very simple calculation of 70.33x 12x 18 that totals to 15,191.28. Not much return on investment. Save the money for them as stated above in a 529.
All sheep are eventually led to slaughter
There are a few questions to be answered. If the need is to strictly take care of your baby go with the 20 year term. Is your wife self sufficient or do you need to take care of her needs? If so you might consider a good whole life or universal Life product that will last down the road. Before purchasing any type of Universal Life product be sure you understand them inside out because agents are notorious for underfunding them to make a sell. Different insurance products are like different tools. Agents get a commission and often are pressured to sell . Get a couple of opinions and quotes. I would recommend a company out of Owatonna Minnesota called Federated. They primarily sale to businesses owners and their products are very competitive and you should get a good needs analysis, It all depends on your needs and your individual situation. A good agent will do a complete need analysis and do what’s best for you.
As far as the argument you would be much better off putting it in savings is like saying you would be better off not buying the warranty on your new outboard? Can you afford it if the motor blows up ?
Last edited by geodebasser; 10-16-2023 at 08:46 AM.
My mom opened a policy for me when I was born with Thrivent. Not a big policy but more than enough to cover my cremation and any expenses and pay for a party after my ashes are spread for my family and friends. It's one of those types that after age 55 I can start drawing from it if I want. I pay the premium every year and it keeps increasing in value a little bit. I have other policies via my employer that cover the kids, wife, and myself that will cover any big-ticket items, there is enough to make my wife debt free with a nice nest egg. She has the same via her employer and it is pretty inexpensive.
agree 100%
Buy them 1K of a Blue chip stock and let them have it at 25 yr. old
I've delivered more than 1 death benefit check to a family that was very thankful they had something when their child passed away. Certainly may not be for everyone, but it's also not the worst financial decision one could make.
529 route
I plan on starting a 529 for my child when that time comes.
With that said, I think a financial adviser is probably a good person to talk to regarding this.
That simple calculation would be 70.33 X 12 months x 15 Years= $12,659.40, not much return but if something happens anytime in their life the insurance company fills in that cash value plus extra $37K. The bank is not going to do that. With no more deposits, you still will get dividends and small growth. Bass boats USED to be a piss poor investment too!
2023 BassCat Sabre FTD
2023 175 Pro XS
Northwestern Mutual. Buy a whole life policy. Term is just like renting, you won't realize any return on the investment. Whole life right now will be relatively inexpensive and will build value over time. I bought policies when I first got out of college and now I get around $2,000 a year in dividends (tax free) and even though I stopped paying premiums a few years back I still have around $200,000 in death benefits. I bought it first to protect my family but also as a long term safe investment. It has met both my goals. Everyone has different needs and goals for providing for their family but this worked for me.
2000 Ranger R83
2000 Evinrude Ficht 150
MG Trolling Motor
Garmin ECHOMAP 63cv, Garmin Striker 7 (helm)
Garmin ECHOMAP 93sv, ECHOMAP 73sv (bow)
"I've got the boat, the rods and reels, the lures . . . now if I could only catch some fish."
.
Reply With Quote