Life or term life insurance at this stage of life
I was talking with my northwestern mutual financial advisor. He mentioned maybe start a $100,000.00 permanent insurance policy.
Im 57 and my wife 55 years old. We each have term until 2043 at $500,000 each.
Oldest daughter 21 years old is special needs with a special needs trust, one reason he mentioned it would be easier to move money to kids if anything happened to us.
We also talked about opening permanent life insurance on my youngest kid 18 years old at $50,000 or $100,000 policy.
Whats your thought on us getting permanent insurance at our age?
Permanent insurance for 18 year old kid?
Terry Says
Great salesman — but you’re only making him rich!
Here’s what to consider. Your own term life will run out when you are 83. Will you care that you’re not leaving your beneficiary that money (presumably your spouse)? Or will you have enough other money in savings and investments that it won’t matter? That’s the only reason to buy permanent life insurance now, because you’re paying a lot for the privilege of building cash value starting in your 50s. If you’re still working, you might do better just taking that premium money and putting it into an IRA or company retirement plan. Of course, that gives you no guarantees, but you still have the term policy til age 83.
I NEVER suggest buying a life insurance policy on a child! If he/she dies, what will you do with the money — remodel the kitchen in his memory??!! And if he lives, he should work and you should help him open a Roth IRA, where the money can be invested to grow tax-free for his own retirement. And the investment won’t be reduced by the mortality charges on a life policy!
As for the argument that he might not be “insurable” at a later age, then he probably won’t be marriageable and fatherable, either! It’s just a way of selling more policies.
Did you guess that you pushed one of my “hot buttons”?! This is the perfect time for a review by a FEE-ONLY FIDUCIARY advisor who is not trying to sell you anything, and can review your entire financial situation. Please watch the video here.
