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May 28, 2014


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We are keeping some life insurance to replace the amount of pension lost due to survivor's benefits being less than the full pension amount. Investing the life insurance will create an income which will replace what is lost. We are not keeping a huge amount and due to the way the insurance is structured, we revisit the decision every five years when the premium increases. We will probably let it lapse the next renewal period, since we hope/plan that our other investments will provide that income stream instead.

I've always been a big believer in term life - something that trickled down from my own father.

I'm in a similar position as FMF - no debt and mortgage paid off with a pretty good retirement stash simmering. However, my wife and I both work and we have two young children. Even though expenses are moderate and we are in good health, we don't want something unexpected to cause a surviving spouse any problems while the kids are young and in school. We'll probably let the term life go at expiration - in about 10 years. Or, at least significantly decrease the amounts at that time.

Our current term life covers about 10 X my annual earnings, and about 12 X wife's earnings, who works part time.

FMF: Estate taxes are an issue for us, but we 1) plan to give away enough of our assets before we die so it's not an issue and 2) have an estate plan to minimize taxes.

How convenient that you know when you'll die to have given away those assets by that time! ;)

Just kidding, at least a little, but something to keep in mind for this is that you don't know when, how, or what things will be like at your time of death or even after.

I plan to always have a little something in insurance as part of the death plan; even though I don't expect it to be a necessary item to give the souse/kids/grand kids/charity something.

Ken --


I meant that we'll give away a portion of the assets, obviously not all. Unless I die first, then my wife may give them all away as she's a big giver! ;)

My answer to each of the five questions is NO!
Thus I currently have no need of any form of life insurance.

Early on in my life when I had the responsibility of supporting a wife and three children I had some term insurance, and disability insurance of course, but now that we are 79 and 81 respectively, have been retired since 1992, and our children are each in a good financial position it wouldn't make any sense.

Only what I have from being employed at my work which is 2x my salary.

College is half done and mostly saved for,401k,IRA and other investments is 10x salary, wife has pension and only 3 years away from retiring from teachingfull time, house paid for.

With all the pre existing conditions exclusions I doubt she would get anything.

I have a 20 yr term policy and don't plan on renewing it when it expries after the kids graduate. At that point, there will be enough assets that their future is protected. All of the inheritance, not that there is much to go around, will go into a trust structured so that they don't get access to the $$ until they acheive certain milestones/goals, eg age and college.

I have a term plan and currently plan on letting it lapse at age 56. Looking at the points:

At that time in the future there should be no debt.
Kids should be on their own and no longer dependant on financial support from us.
I'm figuring I'll have a developed estate plan in the next year or two in that I'm starting to seriously look into that now but from my early readings I'm not seeing how carrying life insurance into retirement is worth it in my particular case as currently planned.
I have no desire to leave a large chunk of my estate to a charity.
I don't own a business.

All that said, given how my kids are doing, how my health is, etc. I can see picking up some life insurance later in life or renewing my policy for a few reasons if circumstances change.

Think #2 is really the only compelling one. If someone isn't relying on you for support, then who cares if you die with a very large debt? I'm just not that solicitous of my (hypothetical) creditors. They can get what they can from my estate.

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