# Is life insurance needed?



## debodun (Sep 30, 2019)

Say someone never married, had no children or other dependents, and had a pre-paid funeral.


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## Pepper (Sep 30, 2019)

I don't see why they would by your description.


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## Liberty (Sep 30, 2019)

Depends on if you care about someone enough to perhaps want to leave them something?


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## Aunt Bea (Sep 30, 2019)

I don't bother with it but it can be helpful to some people as part of an estate plan to help with taxes.


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## Pecos (Sep 30, 2019)

Just make sure you leave the executor of your estate enough money to execute your will.

As to life insurance, it largely depends on the specifics of the policy, your age, and where you think your life will head.

I am extremely happy that I bought some whole life insurance in my late 20's and held on to it all these years. I was divorced at the time but needed to ensure the future of my two young children. I also bought larger, and cheaper, term policies that have expired long ago.

I have long since paid off those whole life policies and they sit there gaining in value every year at a non taxed rate of about 4.5%. I also purchased a policy for my current wife and it is paid off as well. Our monthly life insurance/long term health insurance cost is zero.

So now I have a cash value of about $200K sitting there that can be used for anything I want. Or they provide about $200K insurance for me that can also be used for Long Term Health Care if I need to use it that way. I didn't buy the policies for my current wife until much later in life, so she has less coverage than I do, but again hers can also be used for Long Term Health Care, and it continues to grow.

Would I buy these whole life or term policies today, absolutely not because we are simply too old and the cost would be prohibitive today.  That particular train has left the station.

When I talk to younger family members today, I advise them to buy fairly big term policies because they are cheap, but always augment them with smaller whole life policies that will be paid off at some point, but don't have to be renewed. I have seen so many instances of people buying only term insurance and then not being able to renew it because the insurance company somehow finds out that they now have a significant health issue.


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## Floridatennisplayer (Sep 30, 2019)

Absolutely not.


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## TravelinMan (Sep 30, 2019)

My 2 cents worth says, NAH.
My financial guy, Dave Ramsey, says to _never_ buy whole life policies.  There are far better investments out there.


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## gennie (Oct 1, 2019)

Since my children became adults and self-sufficient I have only carried enough insurance to pay my final expenses.


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## Uptosnuff (Oct 1, 2019)

For the conditions in the original post, I don't see any reason whatsoever to have life insurance.  If you wanted to leave money to someone else, I think there are better ways to do it.


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## debodun (Oct 1, 2019)

Uptosnuff said:


> If you wanted to leave money to someone else, I think there are better ways to do it.




Like in a will.


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## Uptosnuff (Oct 1, 2019)

@debodun
Yes in a will, or as a beneficiary of a 401k, IRA, etc.


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## Trade (Oct 1, 2019)

I took an actuarial hit on my defined benefit pension so that it will pay my wife the same full amount if I die first.

Also her social security check which is about 1/2 of mine will be increased to the same amount that mine is. 

Hell, I'm already worth more to her dead than I am alive. So do I need life insurance too? 

Hell no.


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## Manatee (Oct 29, 2019)

I cashed in my insurance and paid down the mortgage.  I retired the week after I made the last mortgage payment. That was 22 years ago.


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## Don M. (Oct 29, 2019)

A Term Life Insurance policy might make sense when a person is younger, and has family/housing, etc., responsibilities, to be covered, if something were to happen to them.  However, an older person who has no family responsibilities, debts, etc., and has enough set aside for their final costs, really has little need for life insurance, IMO.


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## kaemicha (Nov 24, 2019)

debodun said:


> Say someone never married, had no children or other dependents, and had a pre-paid funeral.


I thought about getting life insurance but was told that it would be very expensive for a senior to purchase. I've done my will twice. I think I'm good with that.


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## SeaBreeze (Nov 24, 2019)

We never had life insurance, we don't have any kids and what we do want to leave to someone in the family, we'll do so in our will.


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## fuzzybuddy (Dec 18, 2019)

"Say someone never married, had no children or other dependents, and had a pre-paid funeral." There doesn't seem to be any reason WHY someone would want life insurance. But most people aren't like that. It all depends on your income and what you want to do. The pieces of estate planing are changing. What is legal and accepted practice on Monday, may not be on Friday. So something set up 20 years ago may be outdated, and ineffective today. I'm no financial advisor, but if you have an estate, you should be re-evaluating your plans, at least yearly, with an competent  estate planner. My mom got messed over by what some overly shrewd lawyer set up in the 1960s.  It involved me buying my parents home for $1. Tax people said nope to that stuff.


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## Ladybj (Dec 18, 2019)

This is a GREAT subject... a lot to think about. I think a lot of people have life insurance so they will have a proper burial and not be a burden on their family. Truth be told, I will keep my policy because I plan on enjoying the money that I do have.  Call it selfish, its ok.. I deserve to LIVE LIFE, ENJOY LIFE!!!  This is just me but it will not take thousands of dollars to put me in a casket.. I won't know the difference where they bury me.  Funerals are a showcase for family and friends.. I won't know the difference, neither would I care.


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## debodun (Dec 19, 2019)

My great-aunt once said, "They'll HAVE to bury me either for the love of me or the smell of me."


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## Liberty (Dec 19, 2019)

debodun said:


> My great-aunt once said, "They'll HAVE to bury me either for the love of me or the smell of me."


Guessing your great-aunt was a woman that called a spade a spade and not "an instrument with which to turn the earth."
She sure didn't mince words!


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## debodun (Dec 19, 2019)

She was a character all right! My mother's father's sister.


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## Liberty (Dec 19, 2019)

debodun said:


> She was a character all right! My mother's father's sister.


Not too many people with that kind of common sense.  My dad used to say "the most uncommon thing in the world was common sense...most people have the common sense of the rear end of a Wyoming horse facing Utah."  That would be a good thread to start...common sayings in your family tree...lol.


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## debodun (Dec 19, 2019)

Why is common sense almost hailed as genius?


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## Liberty (Dec 19, 2019)

debodun said:


> Why is common sense almost hailed as genius?


Because its so "uncommon"...as though entitlement might have been bred in its place...lol.


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## oldman (Dec 20, 2019)

I don't know how to say this, but with the trusts that my wife and I inherited from our families, there was no need for any money for funeral expenses. We cashed in our policies years ago. However, if someone who will be needing money for final expenses, then maybe they should consider having at least a small policy to cover those expenses for when the the time comes.


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## AnnieA (Dec 20, 2019)

oldman said:


> I don't know how to say this, but with the trusts that my wife and I inherited from our families, there was no need for any money for funeral expenses. We cashed in our policies years ago. However, if someone who will be needing money for final expenses, then maybe they should consider having at least a small policy to cover those expenses for when the the time comes.



My parents are in the same enviable place, though they started with nothing and earned everything they have.   The are the classic "Millionaire Next Door" some money person wrote a book about, though they've gone well beyond the million.   They no longer carry any insurance except health and long-term care they took out in their 40s which will ensure that they live out their last days with professional in-home care if needed.


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## Knight (Dec 20, 2019)

debodun said:


> Say someone never married, had no children or other dependents, and had a pre-paid funeral.


Doesn't sound like there is a need. But if wanting to be remembered a million dollar policy with the beneficiary being a scholarship for  gifted  students unable to afford college that might get you at least some remembrance.


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## bearcat (Mar 18, 2020)

debodun said:


> Say someone never married, had no children or other dependents, and had a pre-paid funeral.



An interesting option.....there is a remote possibility of living forever.
I only mention this as a topic, I'm not involved in it.
You can use a life insurance policy as a way to fund a cryogenic preservation plan.
Google search "ALCOR"
It is also possible to use a life insurance policy to raise spendable money: you sign over the rights to collect on it
in exchange for up-front cash.  I'm saying this is possible, not saying I advise it.


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