term is a good idea for professionals with lots of debt and young children. I agree though that things like goals, aversion to risk and most especially current age and financial situation need to be taken into account. But what he said. This is not financial advice. I haven't had a securities license in years.
Still, let me mention an idea that surfaced in thsi thread.... disability insurance. Some of you may recall that a friend of mine had a massive stroke at the age of 40. She wound up having to sell her house anyway, primarily because she could not longer drive and it was beyond the reach of public transportation, but the disabilty policy allowed her the time to organize this so that she got a decent price and it wasn't a fiasco kicked off by loss of income. Something to think about. Dana On Wed, 2 Mar 2005 14:07:52 -0800, Cameron Childress <[EMAIL PROTECTED]> wrote: > > > Life insurance is for people who have no retirement plan in place. > > > If you have a solid retirement foundation in place, investments, IRAs, > > > etc ... Then life insurance is not needed. > > > > Umm... not really. (Perhaps I'm being annoying about this because this is > > my line of work.) > > Agreed. Generally, people require different levels of insurance at > different points in their life. For example, alot of people get term > life insurance when they have kids. Term gets more expensive as you > age, but is real cheap at younger ages. Most parents are young enough > to get some term at a fairly cheap rate. You keep the term till your > kids get old enough to be on their own and then you don't need it > anymore. In that care it's a safety net for your kids in case > anything happens to you while you are their provider and they are > dependant on you > > Whole life is a different animal, and is used for different things (see > below). > > > > It's purpose is if you die suddenly, or if you have no retirement nest > > > egg, then your survivors would be able to pay off your debts and bury > > > you, and be able to live if they relied on you for their sole support. > > > > Exactly - but life insurance and retirement plans are two different things > > entirely. > > Actually, while they are different, however Life Insurance can be an > investment too. I must state at this point that although I have > worked in the Insurance industry before, I am not currently a licensed > insurance agent and nothing I say in this email should be considered > professional advice, and you should seek a licensed agent for > professional advice. > > I happen to have whole life insurance policy, and here are some of the > features of that policy as it relates to an investment or retirement. > It keeps a cash balance as you put money into it. This is my money > and I can take it all back out anytime I want. This cash balance will > gain interest, though a lower rate than many other investment > vehicles, it's still interest and is typically better interest than a > savings account. > > I can "borrow" money out of the policy for things like buying a house > or paying off debts. I don't even have to put that money back into > the policy, though if I never do, the benefit will be reduced by the > amount I borrowed. In this way it is similar to a more traditional > investment. > > Also, if I manage to make it to 100 years old, I get the whole benefit > - all of it - as if I'd kicked the bucket. Of course, by then I would > have paid enough into the policy that the payments + the interest > would be equal to the full payout. In this way it is similar to a > retirement plan, though one for very very old people. :) > > Anyways, I hear people saying things about Life Insurance all the time > that are invalid. Especially on TV. You might or might not have a > need that can be filled with Life Insurance, but disregarding it > outright is not a smart thing to do. > > -Cameron > > -- > Cameron Childress > Sumo Consulting Inc > http://www.sumoc.com > --- > cell: 678.637.5072 > aim: cameroncf > email: [EMAIL PROTECTED] > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:149308 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
