Insurance for dummies(life insurance)?

Jul 4, 2007

  1. infoman
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    infoman New Member

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    Please help . I took out a life insurance policy about 8 years ago it is a whole life insurance policy and has some cash value .I recently discovered I have a group life insurance policy at work . Should I keep both or cash in the whole life insurance policy which is worth about 11,000 in coverage and 1,100 in cash value . The work policy is worth about 65,000 in coverage and 0 cash value
     
    Last edited: Jul 5, 2007
    infoman, Jul 4, 2007
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  2. Newby
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    Newby Guru

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    You should determine what your life insurance needs are before you ever make any changes.

    You should also NEVER count on your life insurance through work as being permanent. Things change.

    There are too many points to make here. You should sit down with a local independent agent in your town and let him help you determine your actual needs. If you are in your working years you should likely have some term coverage (if you have a spouse and or kids.)

    Some people don't need any life insurance at all.
     
    Newby, Jul 4, 2007
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  3. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    Make sure the local person you sit down with has many years in the business, and not someone in their first year. He also should represent MANY companies, INCLUDING NY Life, Pru and Met.
     
  4. James
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    James Guru

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    NY Life, Prud and Met? What if another agent represents say John Hancock, Illinios Life and AIG, and doesn't represent NYL, Pru and Met in your mind does that take them out of the running? I just never seen that combo being suggested in such a manner.
     
    James, Jul 4, 2007
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  5. CHUMPS FROM OXFORD
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    CHUMPS FROM OXFORD Guru

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    No, it does not take them out of the running. I just threw out three of the biggies since they have large portfolios and some (not all) of their options might be quite competitive.
     
  6. zackarychapple
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    zackarychapple Expert

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    Always keep your coverage outside of work. Unless you plan to work there until you die. That is not to say that you do not need a evaluation of your current life insurance. Seek out someone who is independent and can throw some quotes for other Ul or Wl policies they well worth looking into. One thing to take a look at is what they are crediting for interest on your policy. Are they at the minimum guarantee or are they crediting more. That is one thing to note when a policy might need to be replaced, if they hang out at the minimum for a extended period of time.
     
  7. LGilmore
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    LGilmore Guru

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    "I recently discovered I have a group life insurance policy at work "

    All the reason to really think twice about dropping (maybe you should add) your personal policy. Right now the group life pays on the probability that you WILL die while employed with your current employer. Your whole life pays on the certainty that you will die someday. Which is better? When ya gonna die?
     
    LGilmore, Jul 11, 2007
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  8. grint
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    grint New Member

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    you can turn your whole life policy into a "Paid up" policy. Check with your agent or company, this is easy to do. Generally, whole life is a rip off and generates lovely commissions for the agent that sold it to you. Term insurance is much much cheaper and provides a much greater death benefit than whole life.

    A downside to group insurance is that it goes away if you leave the job.

    Another option for your policy is to stop paying premiums and let it go on an extended term option. In other words the cash value will be used up over time paying for your 11,000 in coverage, but the covereage will convert to cheaper term. Once the cash value is used up the policy will terminate

    Another option for your existing wholelife policy is to cash it in and use some of the proceeds to pay for a greater amount of term insurance depending on your need for additional life insurance.

    Most people are underinsured.

    Gawd insurance is WAY boring.
     
    grint, Aug 2, 2007
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  9. Newby
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    Newby Guru

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    Grint says: "Generally, whole life is a rip off and generates lovely commissions for the agent that sold it to you."

    Gee Grint...you don't make lovely commissions on term insurance? You are WAY misguided if you think term is the correct solution for everybody and everything. Try doing a wealth transfer with term.

    Term is a great product to insure your income for your family. But when you try to use it for tax planning, estate planning, or any permenant need you are very misguided.

    I wouldn't think you should give specific cookie-cutter advice on an internet forum without knowing many more details of his situation. Very unprofessional.
     
    Newby, Aug 2, 2007
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  10. arnguy
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    arnguy Guru

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    Grint, are you a Primemerica termite?:wacko:
     
    arnguy, Aug 2, 2007
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