Hello Everyone...I have a very serious question...

[Grasyknol]

Okay, first, I do not want to bum anyone out so if you are not in the mood for a serious question about diabetes and mortality, then don't proceed.

I'm 47, married, have recently stopped smoking for the first time in about 25 years of smoking roughly a pack or pack and half a day. I know that wasn't good but it's a fact. But I have quit and don't plan to go back. I have had three amputations over last 10 years, one toe, half of big toe, and very small part of right foot.

Now the good news. I'm athletic, 195, work out on weights and bike ride. You would rate me as very athletic and very muscular. I look as good as men half my age.

Here's my big question and it relates to Life Insurance. I was able to convert over close to 300K in Life Insurance from a previous job with no health questions that would prevent me from buying it. Great news but here's the catch. the cost of premium is about $85 a month (which I can handle and will go up every five years based on age. So when I turn 50, it may go up another $40 or $50 and then go up again at age of 55.

Here's the thing....at age 65, my beneficiary is eligible for only 65% of the 300K and at 70, it expires and I lose out after all those years of paying premium.

I'm betting I made the right move because I have been diabetic since I was 18 years old and insulin wasn't so great in 80s and much of 90, plus that cig habit didn't help either.

If you were me, would you keep the insurance or take the money and invest in mutual funds? I somehow think that the insurance would be best bet. Over the next 20 years, I will have a little under 30K for something that pays close to 300K...and well, if I reach 70, I guess I should be happy but a little broke financially. Any thoughts?:) What would you do?

I want my wife not to worry financially and think this gamble might be worth it.

[Subby]

Hi Grasyknol, and welcome. I am afraid I don't have knowledge to offer input into your financial question, but good luck with it and in finding trustworthy financial advice.

I wanted to congratulate you on dealing with the D for so long, and for quitting after so long. I know how hard it was at 8 years. (Though, not that hard when push comes to shove, perhaps?) You sure sound like you have your head screwed on straight.

[Grasyknol]

Thanks for kind words Subby....my question will probably be the most negative one I ever post. I hated to start out with it but it really is a serious question I'm sure others have thought about. Insurance is so hard to buy...plus, the stock market hasn't proved so reliable anyway.

[jer.lawrence]

So how much could you get out of the life insurance policy if you took it now? Is that what just under 30k meant?

If you were to take that out now and cash it, do you have any other life coverage? Would it be feasible to cash out on that life insurance policy now, and use that money to pay for something like a "whole life" policy that lasts until you die?

These are really questions, rather than suggestions at this point. I'm 28 and only have a Term policy at the moment myself. Hope that maybe that's given you something to think about though.

Welcome to the forums. I still think, based on the way you describe yourself, you have just as much of a chance to make it into your 70s and beyond as the rest of us. That smoking thing blows, but as long as you didn't get any major complications from that, you sound very healthy. :)

[Grasyknol]

Yeah, I undestand what you are writing. It is a Term Policy and the 30,000.00 is the amount that I will contribute in the next 25 to 30 years. If I pass before, 65, then my wife will receive close to 300K. If I pass between 65 and 69, then my wife will receive 65% of 300K which still isn't bad. But, at 70, all money paid into it will be lost.

Don't get me wrong...lol...I want to live passed 80 as long as I'm mobile and can take relatively good care of myself. But, all things considered, I am debating whether the money (30,000) would be better investing over the long haul and know that I can at least have that at 70 and beyond even if it is worth less.

I'm with you. I'm in good shape and keep active despite being diabetic since I was 18, amputations, and the smoking...question is....is it wise to go the insurance route?

Finally, I realize this is a question with no answers. A perfectly healthy marathon runner can wake up tomorrow and get hit by a car. No one really knows what will happen.

[mortis505]

If it were me, I might put it into Mutuals and/or an IRA. Make other arrangements to cover your passing.

[georgepds]

Life insurance is of yuse to those who depend on you and your estate. Chances are, when you are young, you have a family and those children dend on you. When you reach 65, they are probably independant adults themeselves, and do not depnd on you or your estate.. so the deal you have is not bad

Some find term life a better deal

[Subby]

oops... obviously a popular keyword for spambots.

[kgm0612]

HI & Welcome to the forum!

Karen

[Caravaggio]

Life insurance is for your family who depend on you and who will be in financial problems if you die unexpectedly. One question is whether your wife will have a source of income after you're gone. You did not mention kids so I assume you have none right now, but do you plan to have kids? These are things you should consider.

I don't know if it helps but I terminated my life insurance policy (which is similar to yours) 3 years ago, after my husband and I calculated that our savings are equal to what the policy would have paid if I die prematurely. We both decided not to make the insurance companies richer so we don't have life insurance policies but invest what we would have paid as premium elsewhere.

I'm not saying you should do the same, just that my husband and I did it as we could afford to, and would rather put the premium into other investments.

Think about this carefully. Good luck.

[Less is More]

I'm not sure if this is relevant to your situation, but my husband had a 10 year term plan that we didn't realize was a 10 year term. We thought it was forever and it was a big oopsie on our part. He was diagnosed with cancer the year before it expired. We could re-up it with no proof of insurability, but the premium payment would be calculated much higher to reflect that ... and it was. We went from 250 per month to 1153.00 per month, but he WAS covered. It was also a little over a 300k policy.

It was a struggle to pay, but in the end, it is what I'm living on since he passed. Due to his stage of cancer, we also knew that the time we'd be paying out would be relatively short and worth the bloated premium cost.

I'd suggest consulting with someone who has your best interests at heart to get a policy tailored to your specific needs for the number of years that are realistic. Use the funds from your current policy to pay the premiums. (If I'm understanding that you will have proceeds if you close the policy.) I'm now investigating adding policies on myself for my kids, without a required physical. My insurance company is offering 25k policies at reasonable rates and the suggestion was that I continue to pick up these policies as time goes on so I can build up the overall payout of multiple policies by the time I pass. I always talk in "hypothetical" terms with my agent as a general rule of thumb.

Good luck and it's ALWAYS a smart thing to think about planning ahead. (Sorry if this seems bleak, but traveling down a cancer path and participating in cancer forums, this stuff is discussed all the time.)