Insurance Policies

[creditcardfree]

Originally Posted by jIM_Ohio

You actually keep 20k-30k in cash for funeral expenses?

Um, no. We have an emergency fund and we have term life insurance in the hundreds of thousands of dollars. This is plenty of cash to cover a funeral and more. I agree with Disneysteve that our funerals would be be on the less expensive side...I want to be cremated...so no casket here.

To the OP, what are your goals? Are you wanting to cover your family should something happen to you? Are you wanting to start investing and are looking for a place to put the money? Or, are you well rounded in the investments and looking at the larger tax planning issue?

It is hard to answer your question thouroghly without more information.

[DebbieL]

I personally don't care what the heck my DH (or whoever is remaining) does with my body once I'm dead - it's just the shell then. The frugal part of me says to just do whatever is cheapest. I don't care about a funeral, nor want one. Just take my ashes and spread them where I jog or something. I think the funeral business (in large part) takes advantage of people at their WORST possible time of their lives. JMO. If someone wants to do something, just have a party and enjoy yourselves talking about memories, etc. I'd rather people enjoying themselves (cheaply) than a somber occasion with an expensive casket that's going to be buried anyways.

[jIM_Ohio]

Originally Posted by DebbieL

I personally don't care what the heck my DH (or whoever is remaining) does with my body once I'm dead - it's just the shell then. The frugal part of me says to just do whatever is cheapest. I don't care about a funeral, nor want one. Just take my ashes and spread them where I jog or something. I think the funeral business (in large part) takes advantage of people at their WORST possible time of their lives. JMO. If someone wants to do something, just have a party and enjoy yourselves talking about memories, etc. I'd rather people enjoying themselves (cheaply) than a somber occasion with an expensive casket that's going to be buried anyways.

good point- of the 25k we have "budgeted" for funeral expenses, maybe I should write a will and require 10k of it be spent at a party.

[vsjhoc]

Weddings and funerals ... two areas where people are brainwashed into making financial decisions with their hearts instead of their heads ...

[defcon]

There are a very small number of times where insurance a good investment and they all involve making approx 175k household or owning a business with limitations on the owners 401 k due to the top heavy 401k restrictions.

They can be a very good if not perfect pension hedging & maximization technique.

Also they are vital as part of a convertibility strategy if you found yourself needing insurance in the future which as we live longer, have mortgages longer and therefore insurability needs longer and have had a change in medical insurability.

They are excellent for estate tax mitigation

Lastly if you are house equity heavy in your net worth, and want to access it smartly and want the home to pass to your heirs as a cover in a reverse mortgage situation.

The last several while not operating as an "investment" they allow for a maximization and optimal use of other investments you do have.

[ilr58]

Good points defcon, while a permanent life insurance policy is not appropriate for many Americans (and permanent policies get a lot of bad press due to unscrupulous agents) there are very good reasons for a permanent life insurance policy over a term policy in certain situations.

For the most part, term life insurance can be great (coverage while kids are in the house, mortgage life insurance, etc.) Also, term life insurance is so much cheaper than a permanent life insurance policy that it isvery cost effective for the majority of Americans.

[SavedintheCity]

I had a friend that instead of a funeral wanted his mortal remains to be dumped at a playground or amusement park of some kind. Needless to say he has a very morbid sense of humor, but it would be cheap!! Although probably illegal.

[th_tan]

you can't invest on insurance :P. However, its definately worth getting because at even a dollar a day, you won't leave debt and bills to your loved ones.