"History of Heart Disease" Disclosure, Term Coverage Suggestions, Retirement Goal of Living Abroad

[ddavid1101]

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Oh and when it comes to whole life (not to be smug) if you're basing your impressions on it as worthy asset off numbers you saw from MetLife, that's sort of like test driving a Ford Fiesta and then declaring the Mustang a sissy car.

I'm actually looking at an opportunity cost perspective. I plan diversifying across businesses/property in the US and overseas(Brazil).

Also, because I dont/wont have much debt if any, insurance(life/DI) will just be purely to insure money is still coming in if anything happens to cover the minimal debt/expenses we will have.

Kids education will prob be highest, or I can just ship them to Canada, where I'm from and pay 5K for tuition a year at their top schools.

I need to clearly understand the defined benefits of WL and see if I it meets our needs.

 

[LGilmore]

To bad you're not moving to WA.

But yes, look closely at WL, you may find it works very nicely with your overall plans.

You know one of the tired old raps against WL is "it's only for rich people", ever wonder why that is?

cheers gotta grab some lunch.

 

[WinoBlues]

My take on this.

#1) With many companies it is a no to the question. Based on it happened after age 60 and he did not die prior to age 60. It would not drop you from P+ to P with all companies. On the other hand a P with company X may cost less than a P+ with company Y.

#2) Once the policy is issued it is inforce any where in the world. It may take longer dealing with a claim in some countries. BTW, You will need to deal with foreign travel questions during underwriting.

#3) I have and do some laddering. It is usually with clients that are trying to minimize cost. What we usually find is that they are guessing what the future needs are. When really we only really know today. Typically the cost savings is small compared to the risk. I am a bigger fan of lowering coverage if need and income change. My experience is that people make more money as years go by and do not lower the coverage.

DI? Absolutely

Whole life? Maybe.

An alternative to laddering term with a smaller permanent policy.: Upwardly Mobile, Male age 32, Pref'd, Quote $1,000,000.00

1,000,000.00 to age 62
At age 62 a paid up $130,000.00 policy to age 99
Or at age 62 return of premiums paid, $54,300.00 (may be tax free) I prefer the paid up policy.

Includes a terminal illness rider (most policies do)

$1,800. per year, if P+ $1,550. Add about $130. for disability waiver.
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PS.. if you go Whole Life there are some very good agents on this forum that could do a great job for you. Same for DI

 

[BNTRS]

On the topic of whole life insurance (especially on the asset class side), here's a very quick and dirty primer on basic mechanics:


Whole Life Insurance as an Asset Class Explained - YouTube

I'm actually looking at an opportunity cost perspective. I plan diversifying across businesses/property in the US and overseas(Brazil).

Understood, and no need to take the leap at this very moment. If coverage is the primary concern, best to get the term insurance figured out and then convert or replace as (if) you see the opportunity (and value) in it.

It's certainly not a silver bullet. But I'd suggest (and I could argue at length) makes a lot of sense as part of the overall plan. Including a pretty good argument why giving up some other investment opportunities to take advantage (opportunity cost) could be well worth it.

 

[dgoldenz]

Anyone even considering whole life needs a good disability policy before putting all that money into a life policy.

 

[WinoBlues]

Anyone even considering whole life needs a good disability policy before putting all that money into a life policy.

Xs 2

.........................

 

[BNTRS]

Anyone even considering whole life needs a good disability policy before putting all that money into a life policy.

Completely agreed.







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[ddavid1101]

So looked at my company coverage:

I have 900 a week STD and 3600 a month LTD under Group and it's MY occupation vs ANY occupation.

I also have about 250K in Group Life.

I'm thinking of getting the following:
$1mil 30 Year Term (convertible) -NOW
$100Kish WL/Perm Life -Later
Some amount of Individual Disability Insurance -Later

What do you guys think?

In regards to Disability Insurance:
I currently work for a company and have been for the past 10 years. It is possible and likely that I will sooner or later start my own business. How does that work in terms of coverage for Disability Insurance?

Also, for Term Convertibility, Do I have to convert the full 1Mil or can I convert a much smaller amount? 100K?

Thanks everyone!

 

[BNTRS]

So looked at my company coverage:

I have 900 a week STD and 3600 a month LTD under Group and it's MY occupation vs ANY occupation.

I also have about 250K in Group Life.

I'm thinking of getting the following:
$1mil 30 Year Term (convertible) -NOW
$100Kish WL/Perm Life -Later
Some amount of Individual Disability Insurance -Later

What do you guys think?

In regards to Disability Insurance:
I currently work for a company and have been for the past 10 years. It is possible and likely that I will sooner or later start my own business. How does that work in terms of coverage for Disability Insurance?

Also, for Term Convertibility, Do I have to convert the full 1Mil or can I convert a much smaller amount? 100K?

Thanks everyone!

You can convert any portion of the term insurance that you want. Some companies will have minimum face amounts that they'll allow for term to remain in force (e.g. lets say it's $100k minimum and you convert all but $75k, they won't let you keep the $75k term in force). Probably not a huge concern, but worth knowing.

You could bump your 30 year term of $1.1 mill in prep for the perm purchase later. The increase in premium is likely small, and that would ensure against changing health. This will however dictate somewhat your 30 year term options depending on what sort of permanent coverage you will target (e.g. conversion options at Ohio National will be quite a bit different from the conversion options at Banner).

If you think the $3600/mo group DI is sufficient waiting is okay. But, you could buy up individual DI to supplement and ensure you have a guaranteed increase option to replace what you'll lose when you become a business owner, again this ensures against changing health.

Concerning your questions about being a business owner, two things:

1. You're definition of disability will generally be defined by what you have done for the last 12 months (there are certain variations that might be more or less favorable among carriers)

2. Eligibility for certain coverage will be dependent on what you are doing when you become a business owner. Most will have programs that will allow them to offer you coverage that is dependent on your former income so long as you remain in the same line of work with a verifiable history. You'll use your 10 year employment history to verify.


There will be other disability products available to you as a business owner. Namely coverage to take care of business overhead expenses and the ability to cover key employees and/or partners, but that's a discussion for a completely different day once you are business owner.

 

[ddavid1101]

You can convert any portion of the term insurance that you want. Some companies will have minimum face amounts that they'll allow for term to remain in force (e.g. lets say it's $100k minimum and you convert all but $75k, they won't let you keep the $75k term in force). Probably not a huge concern, but worth knowing.

You could bump your 30 year term of $1.1 mill in prep for the perm purchase later. The increase in premium is likely small, and that would ensure against changing health. This will however dictate somewhat your 30 year term options depending on what sort of permanent coverage you will target (e.g. conversion options at Ohio National will be quite a bit different from the conversion options at Banner).

If you think the $3600/mo group DI is sufficient waiting is okay. But, you could buy up individual DI to supplement and ensure you have a guaranteed increase option to replace what you'll lose when you become a business owner, again this ensures against changing health.

Concerning your questions about being a business owner, two things:

1. You're definition of disability will generally be defined by what you have done for the last 12 months (there are certain variations that might be more or less favorable among carriers)

2. Eligibility for certain coverage will be dependent on what you are doing when you become a business owner. Most will have programs that will allow them to offer you coverage that is dependent on your former income so long as you remain in the same line of work with a verifiable history. You'll use your 10 year employment history to verify.


There will be other disability products available to you as a business owner. Namely coverage to take care of business overhead expenses and the ability to cover key employees and/or partners, but that's a discussion for a completely different day once you are business owner.

Unfortunately my potential small business would not be related to my currently job. Currently a Analyst of Financial Data, small business will probably relate to Import/Export. Since I have decent coverage at work, not sure if it makes sense for me. Especially when an individual policy cant covert to small business owner if different industry(correct me if I'm wrong) which basically mean I would have to do a new medical checkup again. So basically, I'm just getting extra DI while I'm still working for a company at which point nothing counts and I have to reapply when I start my own business. Does that sound right?


My objective with Insurance now is to cover my bases for changing health or death(planning to start a family within 1 year). This was on my mind/to do list since Jan. Then my dad had his first heart attack in July(he's fine) but resulting in my cost of insurance to be up 10-20%.

Sounds like I should just get the right amount of Term and convert when needed and leave DI when I start my own business.