Do We Need More Insurance After Term Runs Out

If you and your wife are over the age of 50, I wouldn't consider any type of universal life other than guaranteed universal life. If you have a plan to continue to build your investments and stay out of debt. You may be fine with another 10, 15, or 20 year term policy. I have been in the life insurance business for 7 years. I am only 25, and if my parents died, even if they had that much invested and their home was worth that much, it would be a huge help to have a life insurance benefit that would be payable immediately and not get caught up in probate while I was waiting on their estate to be settled.
 
I am only 25, and if my parents died, even if they had that much invested and their home was worth that much, it would be a huge help to have a life insurance benefit that would be payable immediately and not get caught up in probate while I was waiting on their estate to be settled.

This is a great reason to keep a minimum amount of permanent insurance on yourself.

Right now the OP is thinking about what happens if just he dies. He is thinking about income replacement and debt replacement. But what happens when BOTH die?

The IRS does not wait on Probate to settle. Neither do the utility companies or other expenses involved in maintaining a house. Then you have various insurances such as house and car... these will instantly become the responsibility of the children. And all of that is on top of normal final expenses.

In many states probate takes a minimum of 60-90 days. And some average more like 6 - 9 months. And of course it can cost money to actually go through probate, both court costs and attorney fees.


When parents with property die, they leave children with hundreds, if not thousands of dollars in bills each month to pay during the Probate period. That is what WL and UL is for.
 
At a minimum, they should have a checking account titled to a trust, so by presenting a death certificate and trust documents to take over the titled account(s). No waiting to do that, aside from getting the death certificates.

And most utility companies will take credit cards from anybody who wants to pay the bill.

All part of basic estate planning.
 
At a minimum, they should have a checking account titled to a trust, so by presenting a death certificate and trust documents to take over the titled account(s). No waiting to do that, aside from getting the death certificates.

And most utility companies will take credit cards from anybody who wants to pay the bill.

All part of basic estate planning.

Very true... but it comes down to how would you rather pay for that?? With dimes or with dollars?


If control of a savings/checking account is all you want, then a simple (and free) TOD added to the account does the job.

But is there enough in the checking/savings to cover all of that? A lot of that depends on how retirement income is being withdrawn... yes it is considered basic estate planning (also basic retirement planning since its foolish to take out income in a single yearly distribution) .... but most dont do it. And many still benefit financially from adding life insurance to leverage their dollars to pay those costs.

So the question to the OP should be, "is there enough in the checking/savings account (assuming a TOD or trust) to cover both final expenses and 6-9 months of ongoing expenses?"...
 
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