Comments (18)

 
Oct 27, 2014 - 1:59pm

3200fps:

Curious question. How many here do not have life insurance policies outside of what your employers provide?

Before I had mortgages, a wife and kids, not really. I think someone sold me a small policy so my mom would have a few bucks to bury me and have a little cash but generally it's not worth it until you have others dependent on you.

 
Dec 21, 2014 - 4:46am

Life Insurance: Best Insurance to Have (Originally Posted: 02/25/2015)

We know almost all people are in fear of dying. Too harsh of a topic to start this article with but it is true. Death is imminent in every second of the day, everywhere in the world. We cannot do anything to prevent it but we can find ways to prepare for it. Taking the warning at heart, there exist insurance companies.

Almost all people now have their own life insurance. The foremost importance of this is to provide for those you left behind. This is extremely important if you are the head of the family. Industry experts say that your life insurance should be ten times your yearly income.

In the most populous countries in the world, life insurances are a must since they are also encountering high death rates each day with the continuous growth of their number. Indonesia, for instance, where 9.764 million of its people live in its capital, Jakarta has a death rate of 6.34% according to indexmundi. For now, accident insurance in Jakarta is the primary priority since the city is the accident capital of the world with a person dying every 90 seconds. But what happens to those they leave behind?

Importance
Even if you do not have any material things or other assets to pass to your children or grand children, you can create an inheritance by buying a life insurance and naming them as beneficiaries. Your children would not be therefore left destitute but instead have a solid future before them.

You can also pay off debts and other expenses when you have life insurance in your aid. You do not want your children or spouse be left behind with extra expenses they need to problem with, do you?

Types
The two basic types of life insurance are the Traditional Whole Life or the Term Life. Simply explained, the former is that which you continue to pay for the rest of your life while the latter is a policy set for a specific time. In availing which one may suit your taste, you can consult a financial advisor to discuss in detail the benefits, advantages and disadvantage of each.

 
Dec 21, 2014 - 4:49am

If you're trying to sell life insurance to the wealthy, pick out the 'tax benefits' and 'estate planning' aspect more and the whole 'protection' side less.

"It is better to have a friendship based on business, than a business based on friendship." - Rockefeller. "Live fast, die hard. Leave a good looking body." - Navy SEAL
 
Dec 21, 2014 - 4:50am

Life Insurance from Employer (Originally Posted: 06/21/2010)

Just wondering if all the current analysts are enrolled in a life insurance program and get some amount deducted from their pay check for this? I am single and have no dependents but I guess its worth is to enroll since the cost is pretty low?

Any suggestions are welcome. Thanks.

 
Oct 27, 2014 - 10:44pm

If my wife wasn't working or I had kids, maybe I would so she/they weren't at high risk of destitution.

However, my wife pulls a nice income and, in the absence of kids, we've built up enough assets that will see her right even if that income drops away. So no life insurance for me.

If I had kids, they'd only be beneficiaries until they got through university. After that, they should be fine on their own.

Those who can, do. Those who can't, post threads about how to do it on WSO.
 
Dec 21, 2014 - 4:51am

i've thought about this for a while but ultimately decided i don't need it right now.

my parents are financial stable and i certain won't be able to collect on my own policy. death is a certainty, but life insurance protects against the financial downsides of an early death. for me and my parents there's no need for it.

i think life insurance would be most useful when you have children or a dependent spouse, as your lost wages will have a significantly negative financial impact on them.

 
Dec 21, 2014 - 4:52am

Yes. It's like $1/month at many firms.

If you have a family (IE: a wife or kids), you need supplemental. If you don't, you don't need it.

You DO however need disability.

You also should be taking full advantage of your firm's 401k match- ESPECIALLY if you want to go to grad school (tax deferral and early qualifying withdrawal into a year when you're earning less money and have a lower tax rate is a no-brainer.)

 
Dec 21, 2014 - 4:53am

thanks monkeyman and illini

so i called them and they said the basic life insurance is just automatic and nothing gets deducted from your paycheck for that. you only have to pay if you get a supplemental one or something, so i guess i'll just stick with the basic since i don't really need one.

good advice on the 401k...all this paper work can get a little confusing

 
Oct 28, 2014 - 9:07pm

Whole, Universal, and similar variants are a great way to pass on an inheritance. They avoid many taxes and can bypass your creditors as well (i.e. you die a net debtor yet still pass on money to your kids). Used as a retirement vehicle for yourself, they are quite complex so make sure you really understand how they work and in what situations you may end up suddenly owing a ton of taxes. Properly managed, they can get you the tax-free investment returns you hear about.

Term products are a good way to guarantee your kids make it to college, or a mortgage gets paid off. Match the duration of the insurance to the duration of the liability i.e. a 20 year policy when your wife gets pregnant, a 30-year term policy when you sign a 30-year mortgage.

Do not buy Term until you have a definite beneficiary. Salesmen will tell you to start a policy now, while you can get underwritten to a stronger Risk Class, and with a lower Issue Age. That is a benefit, but it's not worth paying years of premiums with no compelling beneficiary named, just to have the lower premium. For Whole, Universal, etc., there are compelling reasons to start one when you are young, like any investment account.

I work in this industry.

 
Dec 21, 2014 - 4:55am

Life Insurance - Anyone have advice on how to do it? (Originally Posted: 09/23/2014)

Guys,

I just started out as a CF Analyst, and wanted to buy life insurance. Anyone have any experience on how to do this?

Thanks.

 
Dec 21, 2014 - 4:57am

see if your firm has a group policy for $50k or something. if you don't have family to support, debt, etc., you don't need more than $50k if you're 22 years old. don't let your buddies at northwestern mutual tell you otherwise.

term insurance is great for matching liabilities, anything else is more of an estate planning tool which only becomes an issue once you pass $10mm in non retirement assets (if you're a couple). if you're just now starting as an analyst, you have a while before this becomes a possibility so I'd just say no.

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