I think those 2 statements are the most important. I'm not saying he never makes mistakes and to follow him blindly. Every person is in a different situation and the guy has to speak to the broad public. However, he does give good advice and a good perspective. Again, you have to take that advice, research, and judge for yourself.
I wont be happy until PT admits that there are situations where permanent life insurance makes financial sense. PT, what if you had a child with disabilities. Would you want to make sure that there were funds availiable to make their life secure? Permanent life insurance would fit that bill. Agree? lol
whole life or full term life insurance it's places specificity in trusts and estate planning, for example Medicare trusts ect. It's important to remember the yield isn't the only factor in an investment, sometimes preservation of capital that a whole life policy provides would prudent in a specific situation. In short they have there uses. I think the most important thing that can be taken from the discussion is to keep an open mind and look at range of options with a professional and decide what best suits your needs. Some good information on this in some posts from both sides.
Good thread. My open enrollement at work is currently underway. I've never really given much thought about life insurance until having a little one this year. Don't get me wrong, I have had life insurance but didn't really look into it as well as I should have. My employer provides me with $168K basic life. I have an additional $84K in supplemental which I think is too low. I was thinking about increasing the supplemental up to about $500K. I have about $200K on spousal Life and nothing for AD & D. I know nothing about the subject. I assume my supplemental is NOT term insurance? I can get $500K in supplemental for about $12 per pay period ($24 a month) through my employer. Should I stick with supplemental?
First thing to do is....get a full understanding of what is available to you at work. You need to know what type of insurance it is and it would be nice to know if the coverage is portable. Meaning, can you take it with you if you leave the job. If so, does the cost change? Then you can compare their offering to the marketplace. Find a reputable local agent to show you your options and then go with what fits your situation best. A good agent will steer you in the right direction, even if it is not with their product offering. It is not unusual for me to advise someone to get coverage through their employer sponsored plan rather than through me. But, sometimes they can do better in the marketplace. Its good that you are putting some thought into this. Its the right thing to do for your family. Good luck!
Just saw this.. First let me say that not for one second do I think you would steer anyone wrong on purpose, Dave....I know you are a stand up guy that I would love to share camp with one day.... That being said, the only one I have ever heard promote whole life is an insurance agent or someone that was suckered into a policy and refuses to weigh it... Now onto the disabled kid... I would just stay in NY and let the state pay their rent, clothing, food, cable bill, laptop,etc.... What makes financial sense is to have no debt. . Have plenty of term life ....and make wise long term and short term investments .. .
I don't know if this has been shared, but here it goes. Hooker hit it on the head. Get enough for your wife and kids to live comfortably the rest of their lives. Life Insurance is there for your family to maintain their way of living long after you are gone. In the past, many people just got enough to bury them. Keep in mind all the things that are still due once you are gone. Taxes, any outstanding debt, medical bills and so on. Stay away from Whole Life Insurance. It is a RIP OFF. Get Term Life Insurance. I have had at least 500k since I left college some 23 years ago. I have a lot more now. So in the event something happens to me, my wife will be able to pay everything off, bank a lot and live comfortably the rest of her life. Most of us have some type of retirement as well. So, if she is good with money like my wife is, she should never have any financial issues that she cannot handle and your kids will have a step up on life because of your good planning. Juts my .02!
Dave Ramsey teaches to get 10 times your yearly income. Invested in good, stable mutual funds that should provide that same income for more than 10 years. They should be set by then to take over without that income sent from old school can and string
Wow. I should have read ALL of this thread before commenting lol. He might be wrong, and he might be right. I got what I could afford and seemed like it would cover more than what I would actually need it to sent from old school can and string
I agree, I dont sell "Whole Life" plans. But what you have to understand is that there are many OTHER TYPES of permanent life insurance than Whole Life. Not all permanent life insurance is Whole Life. That's like calling all bows "Mathews".
I've got myself covered for $750,000 through my employer and it costs me around $30 a month I believe. Considering we only have about $100,000 in debt in our house and vehicles, she'll have a fair amount left over to bank and cover basic living expenses for a long, long time once all debts are paid off.
