Author Topic: Renew Term Life Insurance?  (Read 780 times)

alienbogey

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Renew Term Life Insurance?
« on: September 20, 2018, 11:46:27 AM »
(ETA:  Somehow the first 3/4 of my post didn't post.  I'm amending with the data:)

I'm trying to decide whether to renew my term life insurance.

Age 57, excellent health (knock on wood)

Premium:  $1,940 for 12 months (increases each year)

Benefit:  $378,000

Finances:

House paid for
Colleges paid for
$ 2,000,000 in funds and stocks
$125,000 annually in pensions to my widow
$25,000 SS to my widow

Widow would have probably $50,000/year in living expenses, maybe $25,000 more for luxuries

So, my widow would have no trouble making ends meet should I pass, which makes me lean toward not renewing the term life insurance.

On the other hand, perhaps a $378,000 benefit for a $1,939 premium is not a bad rate and, if I keep renewing it, eventually it will pay off.    :/

Thoughts?
« Last Edit: September 20, 2018, 01:32:05 PM by alienbogey »

terran

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Re: Renew Term Life Insurance?
« Reply #1 on: September 20, 2018, 12:00:16 PM »
Insurance is best used to cover a loss you can't otherwise afford. If your dependents will be provided for (or can provide for themselves) in an amount that you and they find acceptable then I would drop it.

Duke03

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Re: Renew Term Life Insurance?
« Reply #2 on: September 20, 2018, 12:37:48 PM »
How old are you?

alienbogey

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Re: Renew Term Life Insurance?
« Reply #3 on: September 20, 2018, 01:33:35 PM »
Apologies, most of the data in my post didn't post, I've amended it.

Radagast

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Re: Renew Term Life Insurance?
« Reply #4 on: September 20, 2018, 01:39:43 PM »
Do not renew. Your assets will generate about $240,000 in annual income with no debt and plus entire house, far more than sufficient. The insurance company is good with numbers, and will come out further ahead than you if you renew.

Duke03

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Re: Renew Term Life Insurance?
« Reply #5 on: September 20, 2018, 01:42:00 PM »
Have you tried shopping around the rates on term?  $2000 a year seems high....  By looking at your finances I'd say you are at the point that you can self insure.

SeattleCPA

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Re: Renew Term Life Insurance?
« Reply #6 on: September 20, 2018, 01:46:00 PM »
So, my widow would have no trouble making ends meet should I pass, which makes me lean toward not renewing the term life insurance.


Yeah, you don't need life insurance.

smallstache

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Re: Renew Term Life Insurance?
« Reply #7 on: September 20, 2018, 03:36:56 PM »
Forget the life insurance. Spend the $1940 on a cruise.

chasesfish

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Re: Renew Term Life Insurance?
« Reply #8 on: September 20, 2018, 05:14:21 PM »
I'd dump the insurance.  You don't need it.  The insurance company has done the math and probabilities and statistically you are more likely to live (yay!)

I dumped all but free employer provided insurance when our assets crossed $1.25mil.  You're way above that with a survivor's pension