Fully Underwritten vs Simplified Issue vs Guaranteed Issue

[DonP]

You guys DO realize that you are on a public website, right? sjm

Jd is mean as a snake on the outside . But he's a Teddy Bear really . He fights with 80% of posters at one time or another . If he rips you it means he likes you . lol

 

[DHK]

Right. You got meals to deliver at Boston Market.

May no one EVER be vulnerable with you about a difficult time in their life because you are too small of a human being to ever have any compassion or empathy for that person.

 

[DHK]

If he rips you it means he likes you . lol

Bullshit

 

[WinoBlues]

Jd is mean as a snake on the outside . But he's a Teddy Bear really . He fights with 80% of posters at one time or another . If he rips you it means he likes you . lol

Oh yeah, he's a lover

 

[DonP]

Bullshit

I was joking . I got thick thick skin so nothing bothers me

 

[DHK]

I was joking . I got thick thick skin so nothing power me

Admittedly, I've gotten a thinner skin over time as I choose whom to share my thoughts, self, and energy... and I easily leave and ignore people who are just 'too much work.'

Ignoring and blocking people online is so refreshing.

 

[goillini52]

You guys DO realize that you are on a public website, right? sjm

Yes.

 

[Life Hawk]

You guys DO realize that you are on a public website, right? sjm

Wait... what?

PUBLIC??

I thought all you old creepy dudes were locked up somewhere safe... now I find out you are loose and running around on the interweb...

 

[Life Hawk]

I was not satisfied with the way I left this thread, but I couldn't think what else to ask or say at the time.

Now that tax season is here, I was reminded of my most basic underlying objective for the questions.

Over the years I have managed to accumulate a few thousand dollars in an assortment of small stock holdings in computershare.

I have reached a point in life where tracking and entering 1099 div's (into tax software) is no longer fun.

I thought selling the stocks and using the money to buy a small whole life policy might be an effective hands-off way to manage that money.

What I think your posts have shown me is the single premium life insurance would preserve whatever money I chose to put in it but it would not allow much further increase of it. I believe I need to think on other alternatives.

My thanks again to each of you who took the time to give me comment and advice.

I would suggest a small FIA, making your beni the one you planned on using for your whole life policy. This suggestion is based of course on your goals, age, amount, and required distributions. These would be important things to investigate before purchasing.

 

[LostDollar]

"but it would not allow much further increase of it."

I think you are forgetting the immediate increase in your estate. Sure, it's not money for you to use now, but you would be getting thousands immediately (I assume you have more than a few hundred to put into it...lol)
Just for a quick example, you might put in 10K and get an immediate death benefit of 16K. That's a huge return!

Thanks Todd.

But in my specific case prior discussion in the thread indicated that a $10K policy would cost me a single premium of $9K plus non-fraternal and possibly drop to $8K plus with fraternal coverage. If I can achieve a longer life, annual premiums would actually cost me more than the policy face over a period of time.

So I take my $9K to $11K out of computershare, give up the dividends and no longer have to track 1099s. I put it in a single premium life insurance policy that has a difference of less than $1K between the premium and policy face.

If I am doing GI to even get the coverage, if I die soon, my wife probably doesn't even get the increase from premium to policy face. If I die longer out I have basically just preserved "the principal" with no increase at all. And in the event I should need a policy loan for something, the policy cash value probably drops $2K below the premium paid.

Although I do have a wealth transfer objective that policy would meet, as I said earlier, now that it is tax season again, I am reminded that I had forgotten my main reason in thinking about the life insurance was to reduce the amount of paperwork my wife would have to pay an accountant to process at tax time. I believe the life insurance option "costs too much"; I need to think out other possibilities.