Too much insurance, or not enough(?)

Jun 18, 2019

  1. DaubsNU1
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    DaubsNU1 New Member

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    51 year old male, non-smoker, good health. Got set up with multiple policies through Northwestern Mutual years ago. Also have employer provided coverage. Haven't really paid attention to the policies...just kept paying premiums. Only debt wife and I have is $344k on 30 year mortgage taken out last July. We are making additional payments with goal of having it paid off in 20 years.

    Thoughts and suggestions on what I have currently...too much, not enough? Good policies? Cash out?

    N'Western Mutual
    - Term 80 = $730k death benefit, $1,588 annual premium, $28.20 last dividend
    - Adjustable Complife = $130k death benefit, $2,059 annual premium, $861.00 last dividend, $26k net cash value
    - Variable Complife = $149k death benefit, $2,274 annual premium, $371.00 last dividend, $34k net cash value

    Employer
    - Employer Paid Basic Life = $50k death benefit
    - Supplemental Life Employee = $10k death benefit, costs $2.30 per month
     
    DaubsNU1, Jun 18, 2019
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  2. fed up
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    fed up Guru

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    The term will go away if you pass 80 and you will have 280 with a bunch of cash value. You ARE depositing the dividends back into the policy, right?
     
    fed up, Jun 18, 2019
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  3. DaubsNU1
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    DaubsNU1 New Member

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    Yes, depositing dividends back into the policy.
     
    DaubsNU1, Jun 18, 2019
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  4. Rob Lion
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    Rob Lion Guru

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    What's your goal with all of this though?
     
    Rob Lion, Jun 18, 2019
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  5. DaubsNU1
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    DaubsNU1 New Member

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    I'm set up pretty good for retirement. Considering cashing in the Complife accounts to help kid with college, and put some towards roth.
     
    DaubsNU1, Jun 18, 2019
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  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Why are you asking here... instead of your Northwestern Mutual agent?
     
    DHK, Jun 18, 2019
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  7. adjusterjack
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    adjusterjack Guru

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    How much money do you have in savings right now? Money that you don't have to spend on anything? Money that you can let sit for the next 15 years while it grows with interest or other investment earnings.
     
  8. DaubsNU1
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    DaubsNU1 New Member

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    My N'Western agent left that company. I've got $80k in savings. No debt, except the mortgage.
     
    DaubsNU1, Jun 19, 2019
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  9. adjusterjack
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    adjusterjack Guru

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    I'm probably going to get some flak on this but I would surrender the cash value policies. That adds $60,000 to your savings immediately. Then add the $4200 per year to your savings that you no longer pay for those policies. With modest earnings on that money and the $80,000 you could have well over $250,000 stashed by the time you are 65. If you can get your house paid off early and avoid debt you can decide if you want to keep working or take SS.

    Meantime, $730,000 in term to 80 is plenty. By the time you are 80, you shouldn't need life insurance, you should have enough money stashed to take care of your surviving spouse should you go first. And maybe some term to 80 on her.
     
  10. VolAgent
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    VolAgent Guru

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    Not sure if I would do this, but certainly a route to go.

    Considering we only know the person's age and debt, how do you know this is enough? No mention of income or spouse's income, or anyone or anything else dependent upon this person's income. It maybe more than enough, or it may be no where near enough.

    Quite frankly, a lot more information is needed to determine how much coverage there should be.
     
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