Good info Payton!!
Estate taxes are something we've personally worked very hard on... With trusts etc. There is a pass thru of the first 5 million... and blah blah blah. It gets very complicated once you surpass 5 million. And of course - anyone with that kind of net worth should certainly have professional help long before they got to that point.
And yes -- mortgage insurance doesn't really work if your mortgage is down next to nothing... which is what happened to my Dad. I think this all came about back in the day with special programs the government had for GI's.
We used to have a couple big policies... but then they become rather useless if you don't really need them to pay off anything or to help your family. They were term policies and we dropped them quite awhile ago. For us personally - it's like having an IRA... we don't really need "retirement funds". YIPPPPEEEEEEE HAHAHAHAHAHAHAHA
Quote:
Originally Posted by Payton King
I think a level term or a return of premium policy is better to cover a mortgage than "motgage life," which is a decreasing term policy.
There are times when a perment life insurance policy (whole life, universal life, etc) makes perfect sense.
John, not to sound morbid, but I would not want to be sitting around waiting for someone to die so I could collect money. Depending on the age and health, a permanent policy can get pretty expensive.
On the other hand, if you are in an inheritance situation where the estate is cash poor (family land or farm) or large estate where estate taxes are going to be a probem (estate over $5 million), then a permanent policy would work. Normally you would set both of those situations up in an irrevocable insurance trust.
For discussion's sake in this thread, I would be more than happy to run some numbers and post them up here so other people might understand how different types of life insurance works, pros and cons of different policies and how they might fit into a person's financial plan.
Not trying to sell anything here, just trying to educate like our Jedi Master.
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