Tuesday, February 06, 2007

More Money Talk

Went back to the financial planners today. Topic of discussion was Variable Universal Life Insurance. Anyone know anything about it or have any personal experience?


Randi said...

not a one, all i know is that matt and i used AAA insurance for our life. its like 8 bucks a month for both of us and its enough to cover the house and a few big bills if either of us die. Also after i think 15 years if we never cash in, we can either cancel it and get all our money back, or roll it over to a different kind of policy. its wonderful

Rebecca said...

Umm...two comments...

First, I have been meaning to tell this to you for a while: I found a non-black Keshia and she kind of looks like you. She's a movie star and she's Maori (aboriginal from New Zealand). Here: http://www.keishacastlehughes.com/

Second, financial planners have fiduciary duties and they are not allowed to push an investment that is inappropriate for you. If you think these guys are doing just that, you can file a complaint with the Securities Division of the State of Nevada, possibly the SEC or some self-regulatory body. My ex bf does financial planning for Citibank in Cali and was telling me about this. I have another friend doing financial planning with Ameriprise in Baltimore. Don't know anyone good locally....you should investigate your planner's licensing. I can put you in touch with my ex bf, he probably can't work with you but he can tell you what to look for in a financial planner.

MarkyMark said...

You don't me from Adam, but I can tell you from years of experience that the best insurance for a young couple is always going to be Term Life. You need to get a policy valued between seven to ten times your annual earnings. Obviously, if you are planning on having children in the next 25 years, you need to make it closer to ten times your annual earnings. The length of the policy should cover you until your children would graduate college. So, if you plan on having children in the next five years, you need a 25 year term policy.

A term policy is much less expensive than any other policy in the market. The money you would save you could invest in the market in a ROTH or other type of long-term financial instrument and gain much more value than hoping to cash in on some value of a life insurance policy.

For instance, my wife and I enrolled in a 25 year term life policy when our first child was born 10 years ago. The rate has remianed fixed and will reamin fixed for the entire 25 years. I have a coverage of $1,000,000 and my wife has $300,000. Additionally, there is a $10,000 rider for each of my children. My policy cost is $945.00 annually.

The money that I have saved on my term life policy has enabled me to invest it into a 529 college plan for my children.

Now, if I live (and hopefully I will) past the 25 years, then my children will be out of school, my 401K will be solid, my mortgage will be paid. The only real costs at that time is the cost of burial.

So, don't go crazy over all of the cafeteria type plans for life insurance. Get enough insurance to provide for your current and future family, then invest the savings into the market where you can earn double digit returns to help fund your college educations and retirement.

Rebecca said...

Oh, so I want to update my previous post. My ex bf is a Nevada-licensed broker-dealer. He has a whole array of products that an insurance salesman would not be able to offer you. Anyway, long story short, if you want his info, you know where to find me. I can also look up the licensing on any financial advisor if you need me to. For free. Benefit of being friends with a securities nerd.

Chesty McTickles said...

Cla Cla- The lady I work with has financial planning background. You can give her a call. I have my life insurance thru her. She has 30 plus years of experience... let me know if you are interested.