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Life insurance


IBTG81

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Oh sure you get slapped around by you know who and now you are sucking up to Ed.  :doh:

 

Probably ask him to go on a fishing trip next.

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over your head too, eh?

 

The man living outside of St. Louis is an idiot. In the simplest of books there is a story line. He missed it. My three year old would have gotten my analogy, which by the way, was a shot at you. you !@#$ing idiot.

 

Here doggy, doggy! :huh:

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I just got life insurance. My financial advisor arranged it for me. He explained it well. THere a lot of "formulas" out there for how much insurance you should get and what type.

 

He said it is all a load of crap. When it comes down to it, life insurance is best described as an "asset subsitute." He used himself as an example. When he was my age (31) he was married with four kids. He had no money and no assets. So he had tons of life insurance so that his family would be provided for.

 

However, now he has no life insurance because he has tons of assets.

 

With that in mind - he got me term insurance because now I have no assets and money. However, as a young lawyer my salary and assets will increase quickly.

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I just got life insurance. My financial advisor arranged it for me. He explained it well. THere a lot of "formulas" out there for how much insurance you should get and what type.

 

He said it is all a load of crap. When it comes down to it, life insurance is best described as an "asset subsitute." He used himself as an example. When he was my age (31) he was married with four kids. He had no money and no assets. So he had tons of life insurance so that his family would be provided for.

 

However, now he has no life insurance because he has tons of assets.

 

With that in mind - he got me term insurance because now I have no assets and money. However, as a young lawyer my salary and assets will increase quickly.

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Here's where he's only partially correct. Insurance is also income replacement. What if you die and your income goes with you. How will your wife be taken care of?

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I, uh, umm...yeah, you chickened out!  That's it!  Of course you fear my culinary skills! 

 

I don't blame you, either.  What makes you think you can make a lasagna?  You can't even cook retatta correctly...  :doh:

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I must admit your 25 cheese and prosciutto lasagna sounded good. Mmmmmmm cheese.

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Here's where he's only partially correct.  Insurance is also income replacement.  What if you die and your income goes with you.  How will your wife be taken care of?

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I just want to stress: also.

 

I know someone's going to blank on that word, and think you said it's not asset replacement at all...

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Not sure where you work, and can't believe no one has mentioned this, but if are a typical"white collar" worker you prolly already have at least 50,000 in what is called Group Term Life insurance through your employer. Reason I say $50,000, is that above that amount, both the company and the individual start to pay taxes(SS and Medicare) on the benfit above that.

 

Also, check your w-2 from last year, if you see a code on there that says GTL, you know you have more than 50K

 

Now, my two cents. I bought a 20 year term life 7 years ago when first kid was born. Wanted prtection for them if I die when they are kids, but thats it. After that they be on their own. Our dude said should have 10X income up to bout 1.5M but over that is overkill.

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Now, my two cents. I bought a 20 year term life 7 years ago when first kid was born. Wanted prtection for them if I die when they are kids, but thats it. After that they be on their own. Our dude said should have 10X income up to bout 1.5M but over that is overkill.

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Yep, I agree. When we first started looking at LI, our rep wanted me to have 500K and Ruth 350K based on our current income. We ended up deciding on just enough to pay off our house and student loans. That would help each of us out if either of us dies.

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