Life Insurance for Your Adult Children

[Oerets]

The wife and I seem to have differing views on the life insurance policies we have on our two now adult children. Both are whole life policies taken out when they were very young. Now they could be cashed in or kept in force building up value.

My wife say's cash them in period. My view is neither one of them have their own policies relying on employers for death benefits. Well except for one son who has a military term till sixty IIRC. So I say keep them, they are cheap enough at less then thirty a month for both. She say's they will just cash them in when we are gone, probably right!

I guess it is too many times people die and leave their loved ones holding the bill. In the last year three people I know have passed without a dime of insurance. One was a retired insurance salesman, cashed his out long ago but kept his wife's enforce. Now she has to pay for his burial!

I'm sure if you think not to hard plenty of people fit into this type. Ones who willing for go getting basic death policies to take care of themselves so other don't have to. I have relatives right now that someday will be leaving their kids to hold the bag so to say. I just can't understand it and would like to leave my sons covered.




Barney

[icenine]

Well I have one too on my kid. I guess if they let me keep it I will. I will have to call the insurance company. One time someone told me that buying an life insurance policy on yourself at the most maximum coverage was certainly ok, and that having one for one's offspring that would be just enough to cover funeral expenses was a good idea. If you can afford the premiums I think it is prudent to keep the policies.

I am not concerned about myself. Heck a $2000 dollar cremation for myself is fine. I think in these hard times it is best just to have the maximum coverage possible and have the cheapest funeral possible. However most parents would probably prefer to do better for their kids god forbid if the worst should happen.

[Oerets]

I guess the thing is for me, how not just my kids but it seems many don't seem to care about having coverage. Before I married is when my first whole life policy was started. Been paid up for years now. Neither of my sons could get the same coverage now for the price. I could ask them for a cash settlement and let them take it over. But fear they would look at the dollars and think not. At their age they still think it will be a long way off.



Barney

[finnbow]

My father (RIP) was a tax attorney and an estate planning speci@list (after retiring as a JAG officer). He, along with every good advisor I've heard, said that the only life insurance you should ever buy is term insurance and it should only be bought if you have dependents who rely upon your income. Whole life insurance is a decidedly bad deal for everyone other than the insurance company, as is insuring for any reason other than protecting your dependents in the event of your demise.

In keeping with this advice, it is almost always a bad deal to buy whole life insurance for children. Parents are virtually never dependent upon their children, so it begs the question of what you are insuring against. I'd say cash out and advise your son to buy for himself appropriate term insurance to protect his wife and kids.

[BlueStreak]

Don't have any------that I'm aware of.

Dave

[Oerets]

Insurance for me is something you never want to need but glad as **** it there when you do. Now I'm not a fan of term, try and get insurance when you have illness or over fifty. I have experience first hand in this regard. At thirty got a life changing diagnosis and then became unable to be insured. If I only had my employers policy that goes away when you leave there would be none now. But I already had two whole life policies enough to cover my mortgage and then some.

The policies I have on them are basically paid up and are enough to cover most expenses and pay of some loans if need be. I have kept paying increasing the values but can stop and still have coverage.


One of my sons is having twins in May so this also is something I considered. So I will delay action and keep paying until it becomes a bigger subject with the wife. Like I said before it is cheap enough right now.




Barney