Subject: Re: Re: best life insurance for family needs

Comments:
: : Hi! : : I'm a 32 yr old married female, non-smoker, and homemaker. I work part-time, but my husband is the primary source of income in our family. We make about $52,000.00 a year. We currently have a combination of both term and whole life insurance. We live in the state of Pennsylvania, and are paying about $102.44 for our life insurance policies. We are each covered for about $300,000.00, $25,000.00 in whole, and $275,000.00 in term. We have two small children, under 8 yrs old, and they have riders on my policy. (Do I really need policies for them. It seems rather morbid?) We just meet with our insurance agent, and the company is trying to get us to increase our whole life policies. They are saying that by investing in them now, we can have a substantial amount of money saved for retirement. My question is, do we need whole life? Is it really that good of an investment, they quote their returns at 6%. We both have IRA's. Our term life will drop off after we turn 90 yrs old, so we will no longer have life insurance. It makes me wonder why I'm going to be paying for something for 58 yrs, and then have nothing to show for it. : : Anyway, could you please suggest a good option for us, because right now we would like to make wise financial decisions, but also maintain good insurance coverage encase of any accidents. : : Sorry my message is so long, I'm just trying to get as much info, to make an educated decision. : : Thank you for your time. : : Nicole : : Seems like 102/mo is quite high for you amount of coverage. Need more info though. : How old is your husband? : Height/weight? : Medication? : Also, seems like you would need more coverage on your husband than on yourself, due to him making more money than you. : Having coverage on children is rather morbid, but usually necessary, God forbid something happens to either of them, you would much rather final expenses coming from an insurance company than out of your pocket. : As far as whole life goes for retirement...forget it. Where are your IRA's invested?(mutual funds or CD's) Given you are so young, you have lots of time (30+ yrs) til you reach "normal" retirement age of 65. Now I realize you may retire earlier or later than that, I'm just making assumptions. I would look elsewhere for your Life insurance coverage to find it cheaper, buy a 20 or 30 year term, then put the extra money you would have put into whole life into your IRA or 401K. Once you have both of those vehicles max'ed out, use a variable annuity for tax deferred growth, or maybe at that point look into Variable Life or Variable Universal Life insurance for the better returns(long term) and tax-deferred growth features. : As far as your statement :"Our term life will drop off after we turn 90 yrs old, so we will no longer have life insurance. It makes me wonder why I'm going to be paying for something for 58 yrs, and then have nothing to show for it." : Your term life will have nothing built up in it, true, but you may not need it when you get older and have substantial retirement accounts built up. So, instead of overpaying for whole life, you invest separately, and end up w/ alot more money than you would have had in a life insurance policy. Same monthly outflow, just more money down the road, make sense? : However, what you did have w/ term insurance was the peace of mind that 1. If you or your husband passed early, you have replaced each others incomes to keep on keeping on and 2. The peace of mnind that you could actually afford the life insurance premiums for the proper amount of coverage. : Permanent insurance has its place, estate planning etc... but unless you have a couple million bucks, you don't have to worry about that yet.LOL. When it becomes an issue, deal with it then by converting some or all of your term insurance to permanent. Hope this helps. : Email me by clicking on my name if you need any other questions answered.

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