Life Insurance: Scam or Good?

Yes, my cash value is currently around $2000. So that's what my beneficiaries would get if I just stop paying for the policy? But you're saying it's worth more if I do? Sorry, I don't really understand all of this.

I agree though that I don't need it, but my mom tries to convince me I do because she and Dad are retired and on fixed income. And if I were to die before them, sort of thing. But I have enough in savings and believe my money better used by not paying and putting away in the savings.
So it seems your parents are financially dependent on you ? If so, then a term policy would make sense with your parents named as the beneficiary.

At 40 years old your premium would be affordable.

I'm guessing your parents are in their 60s ? If so, then I suggest you take a level term 20 year policy that locks in the premium for 20 years and cancel your whole life policy.

I had a 20 year level term policy that I took when I was 53 years old for 250k .The annual premium was $750

If you can afford a 500k policy, then your parents should live comfortably if you are run over by a bus ;)
 
I admit I have practically no experience with insurance claims of any sort because I've been fortunate enough not to have to be bothered by it much.

That said, I have a whole life policy with a major provider. Been paying in for several years now. And, if I understand correctly, my beneficiaries would currently only be given slightly under $2000 should I kick the bucket tomorrow. Which is far less than what I've spent on the policy thus far.

I am 40 years old and single (well, technically still married but divorce will be finalized this year likely). I have no children and do not anticipate ever having another wife or children. Both of my parents are still alive.

I guess what I'm asking is if this is worth it? I feel like the money I spend on this annually would be better "spent" by keeping in my savings. Which would be more than enough to chunk me in the ground.

What are ya'll's thoughts on life insurance? And should I keep renewing? My mom says yes, but I just don't think it's worth it, given my circumstances.
In your circumstance - especially with no dependents and you have NO anticipation (or desire perhaps?) to ever have any dependents - it's a total waste of money.
 
In your circumstance - especially with no dependents and you have NO anticipation (or desire perhaps?) to ever have any dependents - it's a total waste of money.
I agree, but he suggests that his parents depend upon him or worry that if he should die before them, they may experience some hardship; hence my recommendation in the post above.
 
For most everyone but the rich, term is the way to go. But if you have no one whose life would be badly altered by your income/wealth no longer being around, I'd say don't have life insurance. Spend it on drugs, alcohol and cunning women.
 
So it seems your parents are financially dependent on you ? If so, then a term policy would make sense with your parents named as the beneficiary.

At 40 years old your premium would be affordable.

I'm guessing your parents are in their 60s ? If so, then I suggest you take a level term 20 year policy that locks in the premium for 20 years and cancel your whole life policy.

I had a 20 year level term policy that I took when I was 53 years old for 250k .The annual premium was $750

If you can afford a 500k policy, then your parents should live comfortably if you are run over by a bus ;)
Thank you for your very thoughtful message. No, my parents are not dependent on me. They are retired on fixed income but, I assume that means they can manage. Especially since, statistically, the odds are I will outlive them.

I think my Mom just has some weird concept of things. There's more than enough in my savings, of which she's linked, to throw me into the ground if need.
 
For most everyone but the rich, term is the way to go. But if you have no one whose life would be badly altered by your income/wealth no longer being around, I'd say don't have life insurance. Spend it on drugs, alcohol and cunning women.
Yes, I agree. And given what most of you have overwhelmingly said here, I think I will terminate and cash out.
 
Okay, so after running this all by Mom, she responded that I'm locked in whole life and that - should I get married again, which I do not anticipate, but who the hell knows - insurance will be far higher.

And if I buy a house, then the savings account doesn't matter as much as it does now.

I get it.

Jesus, what a weird position to be in. I hate my life. Lol.
 
For what it's worth, my mom worked a decade or so in the insurance business. So she isn't speaking ignorantly. I get her take. She also said that term life is crazy. But I get there are exceptions, depending on situation.
 
My mother is in that generation that kept the whole life type life insurance.

She paid on a policy for my father for 40 years. When he died she did receive around $110K which was a big help, but it was not a great return.

But, all things considered, for her it was a great move. They were never into investing or understanding how to grow your money.

Hell, she has the equivalent of a jar under the mattress in the safe in her closet. I've never seen the contents but she believes that she has over $50K in the safe.

She started keeping money in the safe after about the third time the IRS cleaned out their bank accounts because my father refused to properly file his taxes.
 
Thank you for your very thoughtful message. No, my parents are not dependent on me. They are retired on fixed income but, I assume that means they can manage. Especially since, statistically, the odds are I will outlive them.

I think my Mom just has some weird concept of things. There's more than enough in my savings, of which she's linked, to throw me into the ground if need.
My mother still has a policy on her. She said that she only pays around $120 a year. I thought about telling her to cancel it, but she's been paying for 40 years and she's 75, AND it makes her feel good knowing that her death expenses will be covered, so she might as well keep it.

But she does need to change the beneficiary, since it was my dad, who is dead.

I have a policy through work that pays out 10 times my annual salary. My wife would be set if I were to die.

I checked on getting a policy outside of work a few times over the years, but it was comparatively so much more expensive.
 
My mother is in that generation that kept the whole life type life insurance.

She paid on a policy for my father for 40 years. When he died she did receive around $110K which was a big help, but it was not a great return.

But, all things considered, for her it was a great move. They were never into investing or understanding how to grow your money.

Hell, she has the equivalent of a jar under the mattress in the safe in her closet. I've never seen the contents but she believes that she has over $50K in the safe.

She started keeping money in the safe after about the third time the IRS cleaned out their bank accounts because my father refused to properly file his taxes.
I appreciate both of your posts.

I just renewed it, after talking with Mom. I get her points. She explained much better this time. But I definitely appreciated all of ya'll chiming in. Gave me more perspective, especially on what my mom wants.

My parents are a bit younger than yours. Dad is 70 and Mom will turn 65 soon.

It sounds like we probably share a similar upbringing, however. My folks just never invested. It was all about savings. That's affected me, obviously, but hey, it could be worse. In fact, my grandparents were all about just keeping what you have and being safe. I get it. Probably had a jar somewhere too. Lol.

Anyhow, thank you for your input. Be well.
 
I appreciate both of your posts.

I just renewed it, after talking with Mom. I get her points. She explained much better this time. But I definitely appreciated all of ya'll chiming in. Gave me more perspective, especially on what my mom wants.

My parents are a bit younger than yours. Dad is 70 and Mom will turn 65 soon.

It sounds like we probably share a similar upbringing, however. My folks just never invested. It was all about savings. That's affected me, obviously, but hey, it could be worse. In fact, my grandparents were all about just keeping what you have and being safe. I get it. Probably had a jar somewhere too. Lol.

Anyhow, thank you for your input. Be well.
You know, ultimately, this is what matters. We can educate ourselves, talk, read, etc. but ultimately, we have to be comfortable with our choices.

If this makes you and your parents happy, then you did the right thing.
 
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