J
jIM
My wife and I are taking out new insurance policies because we have a
need for more insurance as parents of twins.
A few questions:
1) insurance agent said that is easier to get a new 500k policy than
to increase our existing 300k policies. Can someone comment if this
is a sales gimmick or really true?
2) We have the 500k need for life insurance for only 5-10 years (long
enough for kids to reach school age). If we have a 500k policy and
want to reduce it, how cost effective is that? We project a 500k need
for 5 years and a 400k need for 18 years (long enough to make it thru
high school graduation). The 300k need probably exists until we pay
off the mortgage (18-25 more years). I asked for a quote on a 100k
policy for 5 years and another 100k policy for 18 years. Did I ask
for something out of line with normal offerings?
3) Wife and I are the beneficiaries of each other's policy. In the
event we both pass, wife and I are leaving 50% to each child. Our
kids are 9 months old. What options exist (trusts, custodians, other)
for the money to be administered on behalf of the kids?
I assume if we use trusts, the trusts need to be already set up, and
we need to appoint someone (guardian of kids) to manage the trust?
Lawyers are the ones which set up trusts (correct?). What cost does
this have? State of Ohio if that matters.
--------------------------------------
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to keep the conversations on-topic for financial planning. Other posting
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need for more insurance as parents of twins.
A few questions:
1) insurance agent said that is easier to get a new 500k policy than
to increase our existing 300k policies. Can someone comment if this
is a sales gimmick or really true?
2) We have the 500k need for life insurance for only 5-10 years (long
enough for kids to reach school age). If we have a 500k policy and
want to reduce it, how cost effective is that? We project a 500k need
for 5 years and a 400k need for 18 years (long enough to make it thru
high school graduation). The 300k need probably exists until we pay
off the mortgage (18-25 more years). I asked for a quote on a 100k
policy for 5 years and another 100k policy for 18 years. Did I ask
for something out of line with normal offerings?
3) Wife and I are the beneficiaries of each other's policy. In the
event we both pass, wife and I are leaving 50% to each child. Our
kids are 9 months old. What options exist (trusts, custodians, other)
for the money to be administered on behalf of the kids?
I assume if we use trusts, the trusts need to be already set up, and
we need to appoint someone (guardian of kids) to manage the trust?
Lawyers are the ones which set up trusts (correct?). What cost does
this have? State of Ohio if that matters.
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.