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#41 Alias Detective

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Posted 25 May 2018 - 02:12 PM

If you have kids/dependents, life insurance makes sense. If youre not sure, err on the side of getting it while young.
Care to answer my question about car insurance? We all take calculated risks, including financial ones.


Or if you plan to have kids Pen. That is an extremely important detail you didn't learn in you Surgery class.

#42 cyclone24

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Posted 25 May 2018 - 02:13 PM

If you have kids/dependents, life insurance makes sense. If youre not sure, err on the side of getting it while young.

Care to answer my question about car insurance? We all take calculated risks, including financial ones.


Guess I'm not sure what comparison you're trying to make with a car. If I lose the car through an accident where I died my family is not really out anything dealing with the car. Maybe paying off the car? That's still peanuts compared to paying a mortgage all the bills funeral expenses Etc.
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#43 penultimatestraw

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Posted 25 May 2018 - 02:16 PM

Or if you plan to have kids Pen. That is an extremely important detail you didn't learn in you Surgery class.

I know it requires deductive reasoning, but my post strongly implies having dependents now are in the future makes life insurance reasonable.

#44 penultimatestraw

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Posted 25 May 2018 - 02:17 PM

Guess I'm not sure what comparison you're trying to make with a car. If I lose the car through an accident where I died my family is not really out anything dealing with the car. Maybe paying off the car? That's still peanuts compared to paying a mortgage all the bills funeral expenses Etc.

But it’s still a cost. Why would you risk it?

#45 Alias Detective

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Posted 25 May 2018 - 02:19 PM

This, if your spouse has a decent job/earnings.


Oh, I guess I misinterpreted your above reply to th post below.

Company provided.
You don't have kids, do not worry about it.



#46 MTSkiBum

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Posted 25 May 2018 - 02:35 PM

Or if you plan to have kids Pen. That is an extremely important detail you didn't learn in you Surgery class.

 

He can get life insurance when has has kids or kids on the way.


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#47 Alias Detective

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Posted 25 May 2018 - 02:39 PM

He can get life insurance when has has kids or kids on the way.


Maybe....

#48 penultimatestraw

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Posted 25 May 2018 - 03:27 PM

Maybe....

Whats the likelihood his insurability will be dramatically different while he and his spouse are childbearing age?

#49 tanatastic

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Posted 25 May 2018 - 03:29 PM

I agree with Pen, 2 adults making good money dont need life insurance. Focus on living your life while alive. Take a vacation, go to a beach, relax.

#50 cyclone24

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Posted 25 May 2018 - 03:43 PM

I agree with Pen, 2 adults making good money dont need life insurance. Focus on living your life while alive. Take a vacation, go to a beach, relax.


I could say that if you're two adults making good money then the slight insurance premium for the insurance isn't going to hurt you either.
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#51 tanatastic

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Posted 25 May 2018 - 03:45 PM

I could say that if you're two adults making good money then the slight insurance premium for the insurance isn't going to hurt you either.


Yea I can dig that.

#52 penultimatestraw

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Posted 25 May 2018 - 05:08 PM

I could say that if you're two adults making good money then the slight insurance premium for the insurance isn't going to hurt you either.

It wont. But that isnt the point. The insurance a hole quickly pointed out MTski and I were WRONG! It aint that simple.

Maybe I should limit it to people in a similar situation to me and my wife: DINK, no debt, not planning on kids or an extravagant funeral. Better?

#53 cyclone24

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Posted 25 May 2018 - 05:33 PM

It wont. But that isnt the point. The insurance a hole quickly pointed out MTski and I were WRONG! It aint that simple.

Maybe I should limit it to people in a similar situation to me and my wife: DINK, no debt, not planning on kids or an extravagant funeral. Better?


Yeah you certainly don't have to. I just think if you dropped dead tomorrow your wife would appreciate being able to pay off the house, pay bills, Etc and not just Bam from day one having to pay for everything. But if she can do it on her own already or vice versa then yeah you don't necessarily have to have it.

Plus it will really screw with the cops when you finally kill her that there was no insurance money motivation.
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#54 Alias Detective

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Posted 25 May 2018 - 05:49 PM

Whats the likelihood his insurability will be dramatically different while he and his spouse are childbearing age?


While we're on statistics both you and you spouse should own long term care insurance. There is over a 70% chance one or both of you would benefit from it.

Still want to pick and choose when you like to use odds.

#55 SenatorRock

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Posted 25 May 2018 - 06:07 PM

While we're on statistics both you and you spouse should own long term care insurance. There is over a 70% chance one or both of you would benefit from it.

Still want to pick and choose when you like to use odds.

I am still not sold on this yet, but am open minded. You don't have to reply now because it is a holiday weekend but at some point I would be interested in hearing the pitch. 

 

The best counter I have heard is putting all assets into a trust, if you require assisted living/nursing home/ltc down the road you just pull the "I am poor" card and get medicaid to pay for it. 

 

My grandma blew through her entire life savings in just under 10 years of living in facilities. Once that was all gone she qualified for medicaid and now that pays for it. Same room, same facility, same care. Her current place is like $8k/mo. Insane.

 

My grandpa spent about 6 months in a memory care facility before he passed and that ###### was like $30k/mo. 

 

Would an LTC policy even cover something like that? I am sure there are probably limits.



#56 SenatorRock

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Posted 25 May 2018 - 06:15 PM

As for life insurance, it makes sense to at minimum have a $100k-$500k term policy in place while you are young and healthy, regardless of current responsibilities (wife, kids, mortgage, debts). You are looking at anywhere from $20/mo to $100/mo for most people.

 

Even if you do not need that much coverage now, you could develop a chronic health issue (diabetes, rheumatoid arthritis, gluten allergies, etc) or be diagnosed with cancer and then you are focked if you ever want to get life insurance afterwards. Either 5x the premiums or not insurable. 

 

At least having that initial policy allows you to renew it for the full term (10-20 years) and likely convert it to a whole life policy down the road without new underwriting. 



#57 MTSkiBum

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Posted 25 May 2018 - 06:16 PM

While we're on statistics both you and you spouse should own long term care insurance. There is over a 70% chance one or both of you would benefit from it.

Still want to pick and choose when you like to use odds.


It can't be that high. The average premium for long term care is 2500 a year at 55 and 4000 at 60.

Assuming you carry it from 55 until the price gets too high which is probably around 70-75. Assuming the average cost over that time is 5000 dollars then over 15 years you would have paid in 75,000.

However, the average payout is 150,000.

This means with profit and overhead there is probably closer to a 25% chance of using it when covered.

It is almost certainly in someone's best interest to invest that money rather than use it towards long term care insurance. Why pay 75,000 dollars for something that is only a 25% chance of paying out 150,000.
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#58 Alias Detective

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Posted 25 May 2018 - 06:19 PM

I am still not sold on this yet, but am open minded. You don't have to reply now because it is a holiday weekend but at some point I would be interested in hearing the pitch. 
 
The best counter I have heard is putting all assets into a trust, if you require assisted living/nursing home/ltc down the road you just pull the "I am poor" card and get medicaid to pay for it. 
 
My grandma blew through her entire life savings in just under 10 years of living in facilities. Once that was all gone she qualified for medicaid and now that pays for it. Same room, same facility, same care. Her current place is like $8k/mo. Insane.
 
My grandpa spent about 6 months in a memory care facility before he passed and that ###### was like $30k/mo. 
 
Would an LTC policy even cover something like that? I am sure there are probably limits.


Most people with money don't wish to live on Medicaid in their final years. I guess it's a personal decision.

There are 3 ways to pay for the care.

1. Self fund
2. Medicaid
3. Leverage insurance

#59 Alias Detective

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Posted 25 May 2018 - 06:20 PM

It can't be that high. The average premium for long term care is 2500 a year at 55 and 4000 at 60.
Assuming you carry it from 55 until the price gets too high which is probably around 70-75. Assuming the average cost over that time is 5000 dollars then over 15 years you would have paid in 75,000.
However, the average payout is 150,000.
This means with profit and overhead there is probably closer to a 25% chance of using it when covered.
It is almost certainly in someone's best interest to invest that money rather than use it towards long term care insurance. Why pay 75,000 dollars for something that is only a 25% chance of paying out 150,000.


Ok

#60 Alias Detective

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Posted 25 May 2018 - 06:23 PM

I am still not sold on this yet, but am open minded. You don't have to reply now because it is a holiday weekend but at some point I would be interested in hearing the pitch. 
 
The best counter I have heard is putting all assets into a trust, if you require assisted living/nursing home/ltc down the road you just pull the "I am poor" card and get medicaid to pay for it. 
 
My grandma blew through her entire life savings in just under 10 years of living in facilities. Once that was all gone she qualified for medicaid and now that pays for it. Same room, same facility, same care. Her current place is like $8k/mo. Insane.
 
My grandpa spent about 6 months in a memory care facility before he passed and that ###### was like $30k/mo. 
 
Would an LTC policy even cover something like that? I am sure there are probably limits.


$30,000 a month? No insurance can cover that nut. I'd double check that number.

Most policies have a monthly benefit for a specific number of years.

#61 Alias Detective

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Posted 25 May 2018 - 06:26 PM

And I paid out $500,000 to my best friends wife because I had this same discussion BEFORE he had kids and got cancer.
Thank God he chose to spend the $35 a month for a 20 year level term policy when he was 27. He died at 40 and was uninsurable for the last 10years....while his kids were born.

  

Whats the likelihood his insurability will be dramatically different while he and his spouse are childbearing age?


In case you glazed over my above post.

#62 shorepatrol

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Posted 25 May 2018 - 06:51 PM

when properly used it stops all the gofundme bull shat.

No it won't , losers in society will burn through it and go straight to go fund me. It's how they live. No personal responsibility or pride 



#63 Alias Detective

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Posted 25 May 2018 - 07:00 PM

No it won't , losers in society will burn through it and go straight to go fund me. It's how they live. No personal responsibility or pride


There is a faction who would rather smoke cigs than buy renters insurance too. Always looking for a donation to get them "back on their feet" after they become "displaced". Leaches.