Foo - Life Insurance

Does anyone currently have life insurance? If so, how much do you pay a month, and how do the terms work? How much will the pay out be for the premium you pay? (e.g. $40/month, $250,000 pay out).

I pay very little and it pays out a whole lot. I'm worth more dead than alive. :( Seriously.

$250,000 is a VERY low pay out.

I pay very little and it pays out a whole lot. I'm worth more dead than alive. :( Seriously.

$250,000 is a VERY low pay out.

*thinks evil thoughts* Hey, how you doing? :D

You really only need it if you have young kids or a mortgage your spouse couldn't cover them self, or a stay at home spouse you support. I have enough in the bank to cremate me, and that's all that matters. If I owned a house I'd want to have enough to burn me and a couple months of mortgage payments until it sold.

Once my boyfriend and I buy a place we'll probably get enough to pay off the place if either of us kicked the bucket, but anything beyond that is a waste.

Same as Siu... high coverage, low premiums. No exclusions, either. I can even fly my own plane and I'm covered. Part of my coverage also pays out for war casualities, etc etc; all the typical exclusions. But that's one of my military benefits.

Yes... I have three policies. One is paid for by my employer and is worth 1.5X whatever my salary is at the time of my death. I have another policy that I pay $7/paycheck for that adds an additional 2X my salary to that.

Finally, I have a "dangerous activities" policy that covers death while acting as Pilot in Command of any aircraft for which I am rated. It will also cover a cycling accident if my employer's lawyers decide that they don't cover things they think are "dangerous."

You have to be very careful when you buy life insurance, especially cheap life insurance. The cheaper the insurance, the more exclusions it is going to have.

Same as Siu... high coverage, low premiums. No exclusions, either. I can even fly my own plane and I'm covered. Part of my coverage also pays out for war casualities, etc etc; all the typical exclusions. But that's one of my military benefits.

AOPA policy? :)

Does anyone currently have life insurance? If so, how much do you pay a month, and how do the terms work? How much will the pay out be for the premium you pay? (e.g. $40/month, $250,000 pay out).

Are you in to some heavily loaded annuity or what?!?!? :eek:

$40 a month in a 10 year term, tobacco free, ~25-30years old, should buy you near a million in benefits.

I won't be buying one as long as I'm single and child free.

I won't be buying one as long as I'm single and child free.

I am single and child-free, but I am not parent-free, so it would be good to know they will be taken care of in their elder years should something happen to me prematurely and I am unable to support them.

That's why my parents have got more children, retirement funds and an expensive enough house. ;)

I think money is the least my parents will be mourning if I pass away. :) I know that my parents have not been supporting their own parents financially although they support them in other ways (time mainly).

I'm pretty sure my parents would throw a party if I died.

Does anyone currently have life insurance? If so, how much do you pay a month, and how do the terms work? How much will the pay out be for the premium you pay? (e.g. $40/month, $250,000 pay out).

You only need enough to cover your debts, and to bury you.
Creditors do not write off your debts when you die. Your family inherits them.

Better cancel the life insurance, UnsafeAlpine!!

That's why my parents have got more children, retirement funds and an expensive enough house. ;)

Oh, did I say they didn't have more children? I'm sorry, I didn't mean to imply that.

Read between the lines...

You only need enough to cover your debts, and to bury you.
Creditors do not write off your debts when you die. Your family inherits them.

Exactly why my policy covers the mortgage and not much else.

ehidle: I wasn't commenting on your case at all so I'm not sure how you figure I was saying yours didn't have more children.

Speaking of parents...

My boyfriend and I are going to get a line added to a pre-nup that states anyone that mentions their mother moving in with us will lose their right to all the toys (motorcycles, track cars, etc) in the impending divorce. :lol:

Highly recommended. Now my parents can't try to mooch too hard because it'll make me too poor to help them. ;)

Nobody inherits your debts when you die. The creditors may collect from your estate, but if there is not enough to cover the debt, then the creditors are left holding the bag. Being related to someone does not obligate you to their debt.

The flip side of that coin is that life insurance is part of the estate (in some places), so a creditor can try to attach to life insurance proceeds, which may leave your heirs with less of an inheritance.

When you die, your assets are liquidated and this becomes your liquid estate. As long as your assets exceed your liabilities, there will be cash left over for an inheritance.

Laws vary from State to State, and in some states, Funeral costs have first priority to estate funds, and then creditors come second. In some States, creditors come after heirs. It all just depends on where you live when you die.

You only need enough to cover your debts, and to bury you.
Creditors do not write off your debts when you die. Your family inherits them.

If that were true, that would be horrible, imagine the revenge a disgruntled family member could give the survivors.

Simplifying it, when you die you may have assets and liabilities. In general, the deceased assets can be used to payoff creditors. Note, the life insurance policy is not an asset of the deceased. You are not responsible for debts not held in your name.

I went through this a few years ago. My MIL had a few credit cards with balances totaling around $2500. I sent each of them a copy of the death certificate, a note indicating that there are no assets, and instructions to close the accounts. I got letters from each demanding payment implying that I had to pay them. I ignored them. I then got collection notices. Ignored them as well. It is all scare tactics to see if someone will pay.

I should also say that on all these matters, don't take my word or anyone else that posts word for it. It is your responsibility to determine what your responsibilities are. The defense "but some guy on BikeForums.Net said so" probably won't hold up.

ehidle: I wasn't commenting on your case at all so I'm not sure how you figure I was saying yours didn't have more children.

I think it was simply both temporal and spatial proximity to my post. Reading it, it could have easily been a response to my post. No worries..

Yes it was a response to your post but I wasn't saying anything about your parents, just that *my* parents have got more kids to rely on when I'm dead. ;)

If you live in a community property state (e.g. California) a spouse will inherit debt even if his/her name is not on it.

But they won't get the property unless their name is "and/or" on the title.....

It's crazy.

The flip side of that coin is that life insurance is part of the estate (in some places), so a creditor can try to attach to life insurance proceeds, which may leave your heirs with less of an inheritance.


Insurance is only part of the estate if you fail to designated a beneficiary on the policy. If you designate a beneficiary, it passes outside of the estate and is not subject to attachment to satisfy creditors.

I'm pretty sure my parents would throw a party if I died.

I know Foo would,

I kid, I kid

:D

I have a pretty substantial policy because I make more than my wife does. I decided some years ago that, if anything happens to me, I want her to be able to pay off the house completely and take a year or two off work if she wants. There's more than enough insurance for her to do that.

Insurance is only part of the estate if you fail to designated a beneficiary on the policy. If you designate a beneficiary, it passes outside of the estate and is not subject to attachment to satisfy creditors.

Thanks for clearing that up for us! That goes into the bin labeled "Very simple yet critical things to know, and not screw up" :)

Thanks for clearing that up for us! That goes into the bin labeled "Very simple yet critical things to know, and not screw up" :)

Quick disclaimer: That's definitely the law in Texas, and I think it's pretty universal insurance law, but be careful to check your state's laws. YMMV.

The flip side of that coin is that life insurance is part of the estate (in some places), so a creditor can try to attach to life insurance proceeds, which may leave your heirs with less of an inheritance.

My wife and I are each others' beneficiaries so I don't think it's part of the estate in that case, even.

We're ~halfway through one 15 yr term, thinking about another to take the youngest kid through high school at least. The 1st term was pretty cheap, ~$300/yr for both of us, I think $250k for each.

AOPA policy? :)

Gack, no! They were very expensive for insuring pilots.

Navy Mutual Aid Association