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Subject:  Re: Life and extended care insurance Date:  4/3/2019  2:56 PM
Author:  joelcorley Number:  5756 of 5833


You wrote, Our term policies expired. The price went from $350/6 months to $1800/6 months. We said HECK no!

I cancelled my term life policy right after my divorce. My daughter insisted on marrying her boyfriend and my son was in junior college. I figured no one would be depending on me shortly and if I died the next day my kids would still wind up with a few grand from the estate, my 401(k) and my IRAs, so they would still have more money to deal with those early years than I did when I was their age.

My father was an insurance salesman, so I was indoctrinated in the industry at an early age. Of course he was quite "sold" on life insurance and maintained a policy. But I became an software engineer so I had gone through the value-prop of life insurance many times and reached the conclusion that you should only insure against risks that have consequences that you can't in good conscious live (or die) with.

If you can live with the consequences, just putting the money in a savings account or CD would probably produce a better outcome in most cases. Investing those savings could (eventually) help make you rich or let you retire early. Or both.

As for long-term care insurance? I figure being rich should mostly take care of that. Also if I become senile like my father did? Well, I'm probably not going to remember ... or care. Also he only lasted another 3 years or so after he reached the point where I would have had him put in a home. And my mother actually only had him in one for about a year. But even at 3 years, his care would have only cost at most about $250,000. I think my estate could to cover that. And if not? Medicaid is always an option. But YMMV...

- Joel
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