Dropping Like Flies

James wrote:
I wonder if there really a need for life insurance if you've got two healthy 401K's, two above average incomes, a healthy college fund, a healthy bank account, only one kid, and don't spend your money on $300 bottles of liquor?

Death insurance has always seemed like a scam to me. And I don't want a funeral. Cremate me as cheaply as possible.

Just a cremation is 2 or 3 grand.  No matter though.  My life insurance is so that lump sum can be used to pay off whatever is owed on the house if something happens to me.  And then some.

I don't want the savings to have to go towards the here and now.  It can be for the future, like it's always been intended.

PS :  My will says cremate me and scatter wherever survivors see fit.  Whatever gives the most peace…

Selim Lemouchi, founder and guitar player for Dutch band The Devil's Blood. They broke up only a little over a year ago and now this? R.I.P.

http://www.blabbermouth.net/news/former-the-devils-blood-frontman-selim-lemouchi-reportedly-dead/

chaz wrote:

James wrote:
I wonder if there really a need for life insurance if you've got two healthy 401K's, two above average incomes, a healthy college fund, a healthy bank account, only one kid, and don't spend your money on $300 bottles of liquor?

Death insurance has always seemed like a scam to me. And I don't want a funeral. Cremate me as cheaply as possible.

Just a cremation is 2 or 3 grand.  No matter though.  My life insurance is so that lump sum can be used to pay off whatever is owed on the house if something happens to me.  And then some.

I don't want the savings to have to go towards the here and now.  It can be for the future, like it's always been intended.

PS :  My will says cremate me and scatter wherever survivors see fit.  Whatever gives the most peace…

You would have a huge tax bill if you took the money out of your 401k.  Plus 401k is for retirement.  Term life insurance makes sense if you have children and it is pretty cheap if your healthy.  No reason not to get it. 

Maybe James Ford wouldn't be so miserable f. if he actually spent  some money. 

So I just went to the first web-site of a known insurance company and for a 20 year term life insurance policy that would cover me until I was 69 and paid 300,000 dollars for my demographics would cost me 65 bucks a month.  So I would pay out 15,600 dollars over the next 20 years for a little peace of mind.  I guess if you are extremely overweight, smoke,  have a bad driving record, have bad health in the family you will pay more.  Seems pretty reasonable to me.  Better choice than draining your 401k to pay for daily expenses.

I guess your wife doesn't make very much money.

We all have our individual situations. I don't think life insurance is a good investment for us.

Did you calculate how much additional money you'd have in your 401K after 20 years if you put the $65/month there instead? Obviously not 300K, but well beyond 15K if you get good returns.

Ahh I disagree. Term life is cheap if you are in your 40s. Do you really want your 401K savings to pay for your mortgage and debts when your spouse dies? (and get taxed too in the process).

James wrote:
I wonder if there really a need for life insurance if you've got two healthy 401K's, two above average incomes, a healthy college fund, a healthy bank account, only one kid, and don't spend your money on $300 bottles of liquor?

Death insurance has always seemed like a scam to me. And I don't want a funeral. Cremate me as cheaply as possible.

I'm pretty sure we could pay our bills on a combination of one of our existing salaries and existing non-401K savings.  We're thrifty like that.
;)

Vas wrote:
Ahh I disagree. Term life is cheap if you are in your 40s. Do you really want your 401K savings to pay for your mortgage and debts when your spouse dies? (and get taxed too in the process).

James wrote:
I wonder if there really a need for life insurance if you've got two healthy 401K's, two above average incomes, a healthy college fund, a healthy bank account, only one kid, and don't spend your money on $300 bottles of liquor?

Death insurance has always seemed like a scam to me. And I don't want a funeral. Cremate me as cheaply as possible.

ok, please lend me some money for Europe?  ha ha.

James wrote:
I guess your wife doesn't make very much money.

We all have our individual situations. I don't think life insurance is a good investment for us.

Did you calculate how much additional money you'd have in your 401K after 20 years if you put the $65/month there instead? Obviously not 300K, but well beyond 15K if you get good returns.

I am already putting max into 401k so I can't put more money in it.  But thanks for the suggestion.  I already get 2 times my salary from work in life insurance.  So I think she will be all right.  We only owe 50k on the house.  An extra 300k for 60 bucks a month until 69 will give me a sense of security.

I don't know why James Ford all wants us all to live a life of poverty like him.  As much as the allure of living like I am destitute appeals to me I think I will continue to buy things and enjoy life.

Well it sounds like we are both ok with our situations, so bravo for both of us.

I think if we did get life insurance, we'd both get it. So assuming rates and conditions similar to yours, that would be 2x$65 per month, right? or do you get a couples discount, like you do at the swingers club?

atomic wrote:

James wrote:
I guess your wife doesn't make very much money.

We all have our individual situations. I don't think life insurance is a good investment for us.

Did you calculate how much additional money you'd have in your 401K after 20 years if you put the $65/month there instead? Obviously not 300K, but well beyond 15K if you get good returns.

I am already putting max into 401k so I can't put more money in it.  But thanks for the suggestion.  I already get 2 times my salary from work in life insurance.  So I think she will be all right.  We only owe 50k on the house.  An extra 300k for 60 bucks a month until 69 will give me a sense of security.

My wife and I both live a more lavish lifestyle than we did growing up. Why would we want to live too much differently than the way we were raised?

atomic wrote:
I don't know why James Ford all wants us all to live a life of poverty like him.  As much as the allure of living like I am destitute appeals to me I think I will continue to buy things and enjoy life.

…and James Ford sees the same 3-4 bands every year. Dr. Dog. Robbie Fulks. Old 97s. It doesn't change!

James wrote:
My wife and I both live a more lavish lifestyle than we did growing up. Why would we want to live too much differently than the way we were raised?

I'm fine with however anyone wants to live their life, but this reasoning is just stupid.

chaz wrote:

James wrote:
My wife and I both live a more lavish lifestyle than we did growing up. Why would we want to live too much differently than the way we were raised?

I'm fine with however anyone wants to live their life, but this reasoning is just stupid.

And this is coming from someone (JamesFord) who whinned about his wife's parents not paying for her college education. 

James wrote:
My wife and I both live a more lavish lifestyle than we did growing up. Why would we want to live too much differently than the way we were raised?

atomic wrote:
I don't know why James Ford all wants us all to live a life of poverty like him.  As much as the allure of living like I am destitute appeals to me I think I will continue to buy things and enjoy life.

So your parents drove a 30 year old car and only had 3 oz of beer a night, and had a 2 hour train ride to work? 

We should have a seperate thread where James Ford gives everyone life advice so not every thread turns into the same thing. 

Interesting enough insurance companies don't make money off your premiums.  They make money off investing your money from the time your premiums until the time you get money out of the policy.  I think they call it float. 

We should start a finances thread, I think.

I'm definitely not one to give financial advice to anyone on here. I'm only stating what works for me, and hopefully I'm not telling anyone they should live like me, from a financial perspective.

I do think this guy manages to talk some sense though.
http://www.mrmoneymustache.com/


And I do really think people should look into attachment parenting more though. Read the blog article I posted in atomic's baby store thread.