Insurance question

[NsXMas]

How much insurance do you all carry? Is it 3x annual income, 5x, or 7x annual income?

I'm re-evaluating my life insurance needs and trying to figure out what makes sense.

2011 has not been a good start for me. Lost around $20k in municipal bonds already, although I have been diversifying into hard assets and inflation hedge investments. Need to make sure I have other financial items squared away before too long.

 

[BATMANs]

Just as high as the tax shelter will allow u.

I know guys that borrow against their life insurance to buy the prancing horse or running bull.

 

[druby]

I used to sell life insurance, personally I have enough to make my wife happy. I keep telling her that when I die to look down, wear black and try not to smile to much. It really comes down to how much you need based on what your personal circumstances are. How much debt you have, if you have young kids that need to be taken care of stuff like that makes a difference. There is no hard and fast rule. I keep enough so that if I go now, all my debts are paid off for my wife and since she works in my business and if I am gone the business may be gone to she will have enough to keep her living like I want her to for the rest of her life. Also since my son is still in college there is enough to pay for his school to be completed. I also have trusts in my will dictating who gets what and when they can get it. That includes my wife. If you ever want some free advice I'll be happy to give it to you. My office number is 912-352-0820. I am not an attorney but I can give you an idea of what I have done to protect what I have and my kids future through my will and the trusts in it. You will need an attorney to do what you want. The main to remember is you may trust your wife but never trust the guy she marries after you are gone.

 

[queenlives]

It really comes down to how much you need based on what your personal circumstances are. How much debt you have, if you have young kids that need to be taken care of stuff like that makes a difference ... I keep enough so that if I go now, all my debts are paid off for my wife and since she works in my business and if I am gone the business may be gone to she will have enough to keep her living like I want her to for the rest of her life. Also since my son is still in college there is enough to pay for his school to be completed. I also have trusts in my will dictating who gets what and when they can get it. That includes my wife.

this reflects the approach i followed, too. my goal was to ensure there were no remaining debts, all family members were well taken care of and my bride got something of a bonus for putting up with me

 

[Harpoon]

The typical way to do the calculation is to make sure you leave 20 times the annual need for the survivor. So, if your spouse needs $100k per year, you need to have $2.0m in assets and/or insurance proceeds. This assumes the funds are invested and earning enough to kick off 5% income. If you add in 3% for long term inflation, the portfolio needs to AVERAGE 8% per year to not run out of money. If you want to be conservative, cut the income to 2.5% and increase the asset and/or insurance proceeds to $4.0m. You can typically qualify for 20 times your annual salary/net business income.

 

[NsXMas]

I used to sell life insurance, personally I have enough to make my wife happy. I keep telling her that when I die to look down, wear black and try not to smile to much. It really comes down to how much you need based on what your personal circumstances are. How much debt you have, if you have young kids that need to be taken care of stuff like that makes a difference. There is no hard and fast rule. I keep enough so that if I go now, all my debts are paid off for my wife and since she works in my business and if I am gone the business may be gone to she will have enough to keep her living like I want her to for the rest of her life. Also since my son is still in college there is enough to pay for his school to be completed. I also have trusts in my will dictating who gets what and when they can get it. That includes my wife. If you ever want some free advice I'll be happy to give it to you. My office number is 912-352-0820. I am not an attorney but I can give you an idea of what I have done to protect what I have and my kids future through my will and the trusts in it. You will need an attorney to do what you want. The main to remember is you may trust your wife but never trust the guy she marries after you are gone.

Thanks David, I called your office and left you a voicemail.

 

[druby]

I will be in Monday I'll all you then

 

[druby]

I tried to call you back Monday but got voicemail, I left a message. I will in this morning if you want to talk.

 

[NsXMas]

I tried to call you back Monday but got voicemail, I left a message. I will in this morning if you want to talk.

Hi David, thanks for calling. Was swamped last few weeks. Have barely been online at call, never mind trying to get things done.

My to-do is to call you this week sometime. Hope to talk this or next week.

Thanks.

 

[Big_D]

I have roughly 3X through my employer and 7X on a term policy.

 

[druby]

I never heard back from you, feel free to give me a call when you have a chance if you still need help.

888-728-7255 toll free

 

[druby]

How did your meeting go with your agent? I hope you got something out of our conversation that helped you.

 

[NsXMas]

How did your meeting go with your agent? I hope you got something out of our conversation that helped you.

Hi David, everything went well. Going through the application process now. Thanks again for your help, it was definitely very very helpful!!! :smile:

 

[druby]

Great to hear, glad you got the help you needed. All my best!

David

 

[guanacoracing]

How much insurance do you all carry? Is it 3x annual income, 5x, or 7x annual income?

I'm re-evaluating my life insurance needs and trying to figure out what makes sense.

2011 has not been a good start for me. Lost around $20k in municipal bonds already, although I have been diversifying into hard assets and inflation hedge investments. Need to make sure I have other financial items squared away before too long.

This is what we use in our agency. Hopefully it will other Primers as well.

 

[NsXMas]

Thanks!