Comments on: A Time to Challenge Cookie Cutter Financial Advice

By: Weekly Roundup: Feels Good To Be Back Again Edition | You Have More Than You Think

Sat, 30 Jul 2011 21:03:14 +0000

[...] take the “personal” out of personal finance. This post demonstrates why you have to look at your own situation and experiences to determine the best financial plan for you and your [...]

By: My Journey

My Journey — Mon, 28 Sep 2009 19:47:01 +0000

Donna,

Did you purchase term or whole life? If you purchased term like many of the pundits proclaim as the only choice, there is likely not to be a “chunk of incusrance money.”

Lets say you are 40, and you bought 20 year term then that brings you to 60 and her at 51. Odds say you aren’t going to pass away prior to 60, yet she still needs that money, depending on the neurological illness.

Just some thoughts.

By: Shawanda Greene

Shawanda Greene — Wed, 16 Sep 2009 03:38:43 +0000

That’s very thoughtful of you. Looking out for your daughter like that. Even after you’re independently wealth, it seems like a good idea to consider whether you should drop life insurance coverage. You still might want to transfer the risk to your insurance company. The concept is similar to me choosing to carry insurance on my car even though I own it outright. I rather pay the insurance company $63 a month to assume the financial risk of replacing my car than to go without auto insurance and risk losing the value of my car in the event of an accident.

By: Shawanda Greene

Shawanda Greene — Wed, 16 Sep 2009 03:29:26 +0000

You pose a valid question. If I’m financially unable to provide for my mother, then she’ll rely on Social Security. Although she’s not technically dependent on me, I don’t want her scraping by on government subsidies during her golden years if I’m not around to take of her.

By: Shawanda Greene

Shawanda Greene — Wed, 16 Sep 2009 03:25:37 +0000

I’ve never seen a cancer or heart attack insurance policy, but I’ve heard of them and they sound like garbage. Standard health insurance should cover these ailments.

By: mapgirl

mapgirl — Fri, 11 Sep 2009 21:12:40 +0000

hm. I didn’t realize the medical component. That’s a very good idea. I carry more life insurance than *I* need because my sibling would be stuck holding the back taking care of my undersaved parents in their retirement. So I have extra life insurance right w/my parents as beneficiaries.

Is your mom’s retirement settled yet? Right now the market is crazy so if she’s not set for retirement, you should factor that into your coverage amount too.

By: Goran

Goran — Fri, 11 Sep 2009 20:46:52 +0000

This is excellent advice!

First I’d like to do the numbers. It should be possible to calculate the yearly cost of signing a life insurance now against what we would save up getting it later, minus the higher premium.

It’s also about genes. Cancer has a strong genetic factor. Do you have any diseases running in your family? If you don’t then I wouldn’t worry too much. Not unless you are, say, confronted with carcinogens every day at work, smoke or live in a radon house.

Then again it’s different in our country. 90% of our working population has a life insurance through our employer. I just checked with the university where I work and I’m covered. Private life insurances are better, but for me personally it’s difficult to justify the extra cost.

By: Donna Freedman

Donna Freedman — Fri, 11 Sep 2009 17:49:07 +0000

I am divorced and my only child, a 31-year-old daughter, is on disability following a neurological illness. A few years ago I got life insurance even though I was financially very pinched, for the same reason you cited: Get it now, while I’m still in my 40s and have no health problems.
I don’t know what kind of estate I will be leaving her — but I do know that there will be a chunk of insurance money that will help her with a big-ticket item such as a house or an investment plan so she will not be impoverished later in life.

By: Torrey

Torrey — Thu, 10 Sep 2009 19:39:29 +0000

I did not have a term life insurance until I got married about three years ago. The one thing I do not have are the specific insurance policies (i.e. cancer, heart attack, etc).

I really do not think I would have life insurance if I was single with no dependents, though. If I did, it would just be enough to bury me if I died, although I guess savings could be used for that as well.

By: Tia

Tia — Thu, 10 Sep 2009 19:10:24 +0000

I have life insurance with my job, but I purchased separate life insurance after taking a personal finance class during my MBA program. While there is a lot of “insurance” policies out there, life insurance is one that I think is a must. I have a five year old, so I wanted to make sure that he was taken care of if something happened to me. (I’m only 28.) The stories you shared make a compelling argument to get insurance while you are young instead of waiting. Let’s not forgot my story about cosigning, my family member has me as the beneficiary of her policy to free me from her debt. Its like a business plan or a life plan, you should always tweak it to match your current lifestyle.