Ladies!! Please, please,please talk with your spouses.

[bored]

Yes, you are, in implying all term is good and all whole life is bad.

It's not that simple. Term can make sense when people are (a) diligent about forecasting their liability (higher when in prime earning years and when children are in college, lower as they approach some for of "retirement" and (b) diligent about makiing long term investments with the difference in the term vs. whole life premiums.

However, most people who buy term are not diligent about either. They simply buy term because it is initially "cheaper" -- which it is until you start getting older. By the time people are in their early 40s, those who purchased whole life in their mid 20s will often have built up enough cash value to make their policies self funding, while those who purchased a similar face value of term back in their mid 20s will end up eventually forking over more in premiums than the whole life buyers did. And most term people never seem to get around to "investing" the difference in premiums (which evaporates by the time you are in your late 40s).

Bottom line: whole life = owning. Term = renting.

AND EQUITY IS GOOD.

Whole life = more commission for the agent selling it. I've never heard any financial advisor recommend whole life.

 

[curlybop]

I would also like to add that beneficiaries for any plan need to be double checked. Don't assume your 401k or any other retirement plan automatically goes to the spouse. Put it in writing. If anything with those relationships change, be sure to update the forms with HR.

Consider disability insurance also. I personally know of someone close to 50 who just had a stroke. Out of the blue, he's out of work for months now trying to recover. Thankfully he took the disability policies that were offered so he is receiving a percentage of income.

The easiest thing for any employee to do is go to their HR office and ask to see documentation for all of their policies. Be aware of what you have and who benefits from it should something happen. Pay attention in benefit meetings too. You never know when you might need all of that information.

 

[Muushka]

Whole life = more commission for the agent selling it. I've never heard any financial advisor recommend whole life.

It does depend on who you buy it from. My ins co does not have agents.

 

[CandyMandy]

Whole life = more commission for the agent selling it. I've never heard any financial advisor recommend whole life.

financial advisor = code for investment sales.

 

[Robinrs]

I feel for your friend. I do have to wonder though, why only a shout out to ladies?? Ironically I carry the life insurance for both the whole family through my work and I am the primary wage earner and w/ dh's profession the only wage earner. In our case, I'd be more worried for him if something happened to me.

I found curious and outdated AND slightly offensive, too.

My Mom took care of ALL of the finances in my home. Growing up I'd watch sitcoms and wonder why was the Mom asking the Dad for money? My Mom always told us where everything was just in case something happened to her and her famous line was "grab your little Daddy and RUN"!!

Turns out my Mom DID pass first and it was amazing how quickly my Dad stepped up to the plate. At 83 he showed ALL of us how much he could do and straigtened up all the finances before he passed away 6 months later.

We should all, no matter what gender, makes sure we have our financial ducks in a row.

 

[eliza61]

Sure, if you stick it under the mattress. However, most would invest the money, and it will come out to way more than that.

that's the problem. Most Americans do not invest. Mjk, until this recession the savings rate for Americans was in the negative. If we are not saving during our every day lives, how many people do you think are getting into investing. Even 401K's are not being fully utilized by working Americans and many 401K's give company matches so that's like giving away free money.

I'm not sure I would label those people ignorant. I mean my friend in this situation is a pretty smart gal. who knows why we dodge these issues but we do.

In my 30's I was one of those people who swore I was going to get a term policy and invest the difference, I ended up with "bubuskas" zippo. Not because I was ignorant but simply because in real life, especially with the young life insurance and investing tends to be waaay down on the list of priorities.

 

[eliza61]

I found curious and outdated AND slightly offensive, too.

My Mom took care of ALL of the finances in my home. Growing up I'd watch sitcoms and wonder why was the Mom asking the Dad for money? My Mom always told us where everything was just in case something happened to her and her famous line was "grab your little Daddy and RUN"!!

Turns out my Mom DID pass first and it was amazing how quickly my Dad stepped up to the plate. At 83 he showed ALL of us how much he could do and straigtened up all the finances before he passed away 6 months later.

We should all, no matter what gender, makes sure we have our financial ducks in a row.

OP here,
No offense intended. simply that I posted the thread maybe 3 minutes after hanging up with my girlfriend. So I posted her situation and was probably a bit emotional.

My apologies.

 

[redbirdgrad]

Eliza61,

If your friends husband worked for Amtrak - please have her call the US Railroad Retirement Board - Toll Free: (877) 772-5772 - and ask if there are alny benefits she (or her daughter) is eligible to receive. He should have been paying Railroad Retirement Taxes (not SSA) - and their benefits are different.

 

[Dan Murphy]

I would also like to add that beneficiaries for any plan need to be double checked. Don't assume your 401k or any other retirement plan automatically goes to the spouse. Put it in writing. If anything with those relationships change, be sure to update the forms with HR.....

With a 401(k) or any subject-to-ERISA qualified plan, a spouse is automatically 100% beneficiary, unless spouse legally and formally signs off. If you have a prior beneficiary designation and get married, the new spouse is automatically 100% beneficiary, unless signs off. This is Federal law.

That is not to say it can not be changed, nor is it not good to check the designations and keep them up to date, both on qualified plans, as well as any other asset.

There are both truths and misnomers in the replies here, have not read them all. Just wanted to comment on this one above.

(not to be taken as financial or investment advice)

 

[mjkacmom]

I'm not sure I would label those people ignorant. I mean my friend in this situation is a pretty smart gal. who knows why we dodge these issues but we do.
.

My point was that if someone received a $1,000,000 payout on a life insurance policy, they would logically put it in an account receiving interest, wheras the person I was responding to divided it up over 20 years, without adding any accrued interest. So yes, I do think someone would have to be ignorant to not invest a million dollars, and keep it under the mattress.