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Stop paying my life insurance

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  • Fri, Apr 10, 2009 - 03:57pm

    #11
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    Re: Stop paying my life insurance

Cape, I’m still paying our term insurance policies, but we’re mid 40s with two young kids.

Whole life I’ve always read to be an underperforming use of money, compared to term. If you canceled, wouldn’t you get some sort of payout?

What does your wife want to do about the policies? She’s the person it most affects.

When you say no dependents, do you mean no adult children too? If it were me, as the beneficiary, and I had children I was on good terms with, I’d consider letting go of whole life at least. If I’m understanding that your $1600 is a quarterly expense for whole life, that’s a lot of money each year to be put towards preparing for a more self-sufficent lifestyle. Even the $500 term life adds up, if it’s quarterly. (With no children, or close nieces and nephews to take me in, I’d make sure I could survive on the term payout, before canceling whole life though.)

  • Fri, Apr 10, 2009 - 07:09pm

    #12
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    Re: Stop paying my life insurance

Hi Sue,

I was unclear about some factors. My son is 27; his financial future is his own concern.  My wife has no thoughts; she is totally unconcnerned about the future, whether hers or the planet’s.  She lives in the present.

 The payments are actually $400. quarterly for the whole life and $500. annually. for the term. They are each for $150k, payout considerable amount of $ today; 20 years from now…who knows. I think the whole life has a surrender value of $20k, pretty good amount. I have been pretty pleased with that figure; it apperas to rise well yearly. I believe that there is a way to tap the surrender value to pay the yearly premium and reduce the death benefit but I haven’t checked it out.

This is not a life changing amount of money yearly for me right now; I just don’t like to throw out money. Under normal ie. no triple e circumstances I probably wouldn’t think of altering these but as a quarterly pmt. is coming due, I started to think, always a dangerous thing.

 

SG

  • Sun, Apr 12, 2009 - 04:36am

    #13
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    Re: Stop paying my life insurance

If it came down to only being able to pay health insurance or life insurance, I’d probably pay for health first. Of course, we’re looking at a situation where it’s doubtful any insurance company will give us a policy for our house/farm for anything even approaching a reasonable rate. Life and health insurance is likewise going to be difficult (at least for me) due to "pre-existing conditions".  At this point, I think when we finally move to our remote cabin we’re going to be uninsured except the minimum vehicle liability insurance required by law in our state… any other issues will have to come out of pocket, which is probably a safer bet in the long run anyway since I’ve been denied insurance coverage more than once for stuff they should have paid for according to the policy (health, vehicle and property). It’s all a racket in the end… pay your several thousand a year in premiums and it’s still a crapshoot whether they’ll actually pay out when the time comes.

  • Sun, Apr 12, 2009 - 05:14am

    #14
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    Re: Stop paying my life insurance

Personally I have come to the conclusion that all insurance is a scam.  Unless you are willing to set fire to your automobile or otherwise act fraudulently, no company has any interest in paying you more money than you pay it.  Not only that, these companies were supposed to invest their money conservatively, and earn a rate of return that covers all their policies.  We will soon discover that these companies were of the thought that commercial mortages never lose value, and are vested heavily into commercial properties and the paper created around them.

Even with health insurance if you do the math and actually save your premiums you would pay health insurance for emergencies, and negotiate cash discounts with health care providers, you come out ahead; even if catastrophe hits the insurance companies balk at paying your bills anyways. 

 

  • Tue, Apr 14, 2009 - 05:19pm

    #15
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    Re: Stop paying my life insurance

I agree with you PlantGuy. When I was talking to our agent about insuring our cabin, he just laughed when I told him we were 4 hours from the nearest official police, fire or EMS station. Sure, there’s a local volunteer fire brigade, and the state has it’s forest firefighters, and there is a little native clinic in the village, and you can get med-evac out of the little village airport…. but no insurance company wants to touch such a "high risk" property. Whatever! That property premium savings will pay for a pond and our own fire pump out of it. Same thing goes for our medical… better to save our premiums for actual services and emergencies rather than throwing money into an insurance hole!

  • Tue, Apr 14, 2009 - 05:26pm

    #16
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    Re: Stop paying my life insurance

This might be a good place to repeat a story I told in another forum about a local farmer who was hit by lightning, early in the harvesting season.  The surrounding family farms (including the one I was associated with), without much ado or deliberation, pitched in and took turns combining his corn and beans, so that he would have a livelihood to return to when he recovered.  As I noted before, this was taken in stride, and no one thought of themselves as being particularly noble for doing this.  It was just accepted as the right thing to do.  Neighbors with that kind of attitude are far more valuable than any faceless, soulless insurance policy, in my mind.

  • Wed, Apr 15, 2009 - 12:56am

    #17
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    Re: Stop paying my life insurance

[quote=c1oudfire]

This might be a good place to repeat a story I told in another forum about a local farmer who was hit by lightning, early in the harvesting season.  The surrounding family farms (including the one I was associated with), without much ado or deliberation, pitched in and took turns combining his corn and beans, so that he would have a livelihood to return to when he recovered.  As I noted before, this was taken in stride, and no one thought of themselves as being particularly noble for doing this.  It was just accepted as the right thing to do.  Neighbors with that kind of attitude are far more valuable than any faceless, soulless insurance policy, in my mind.

[/quote]

In my experience, such stories are indeed commonplace here in the midwest. Part of the work ethic and sense of right and wrong, I guess, but very admirable. And, you’re correct that those providing the assistance simply do not feel they are doing anything exceptional. And, in a sense, they are not; that is just part of a healthy community. I suspect it is similar in other areas of the country, too, but I’ll take some pride in my midwestern roots. 

  • Wed, Apr 15, 2009 - 01:37am

    #18
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    Re: Stop paying my life insurance

Me three (my Mom’s from E. Iowa)…

For a cinematic take on the above 2-3 posts, try the denouement of the film "Sweet Land"…

Viva — Sager 

  • Wed, Apr 15, 2009 - 01:53am

    #19
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    Re: Stop paying my life insurance

[quote=SagerXX]

Me three (my Mom’s from E. Iowa)…

For a cinematic take on the above 2-3 posts, try the denouement of the film "Sweet Land"…

Viva — Sager 

[/quote]

Where is your mom from in Iowa? We are in Iowa City. My wife is from northern Iowa. I am from Kansas, but my great grandfather and family emigrated from Germany to western Iowa in the late 1800s. 

  • Wed, Apr 15, 2009 - 02:35am

    #20
    Peak Prosperity Admin

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    Re: Stop paying my life insurance

Pirates..my,.. my thread..hijacked..where are the snipers when you need them?

My payment due on 4/16.

Just kidding, I appreciate the posts here. I actually have a 30 day grace period to keep avoiding making a decison, I mean, to deliberate.

 

SG

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