LIFE INSURANCE

[yeshivabucher]

Getting a policy while pregnant has any effect on the premiums?

my wife didn't have any issues

[mushkovits]

my wife didn't have any issues

My question is if it has any effect -for the better or worse- on the premiums.

[yeshivabucher]

My question is if it has any effect -for the better or worse- on the premiums.

in my case specifically we started working on it before she got pregnant and by the time we got to the health form we found out and it didn't change the premium but as with everything YMMV

[elihak7]

my wife didn't have any issues

Aren’t you a yeshivabucher??

[yeshivabucher]

Aren’t you a yeshivabucher??

only a slight technicality

[ExGingi]

My question is if it has any effect -for the better or worse- on the premiums.

It shouldn't (in most cases). Though don't forget the risk of gestational diabetes, high risk pregnancies, and sometimes just blood chemistry going off balance (one of my wife's policies came back with an unfavorable lipid profile, after the baby was born she took a new blood test and everything was back to normal, and policy was upgraded to best rates).

[CountValentine]

Is there a point where you say I no longer need life insurance?

[Yehuda57]

Is there a point where you say I no longer need life insurance?

When the wife goes gun shopping.

[CountValentine]

When the wife goes gun shopping.

Did that before we were married.

[ushdadude]

Is there a point where you say I no longer need life insurance?

absolutely. when you reach financial independence. WCI dropped his disability and life insurance

[ExGingi]

Is there a point where you say I no longer need life insurance?

How do you define "need"? That is quite subjective IMHO.

Also there a big difference between term insurance that represents pure protection that has a cost, and permanent insurance that has a lifetime death benefit and usually has living benefits too.

[CountValentine]

How do you define "need"? That is quite subjective IMHO.

The main reason I have insurance is to help DW (family) financially when I pass. She (family) no longer needs that help.
Just cash it in or probably just look at in investment terms?

[ExGingi]

The main reason I have insurance is to help DW (family) financially when I pass. She (family) no longer needs that help.
Just cash it in or probably just look at in investment terms?

A life insurance death benefit provides immediate income tax free liquidity at death. Since you're talking about cashing in, I am assuming you are talking about whole life. If it's more than a decade old, it is likely that it will have a taxable gain if you cash it in. That gain will be taxed at ordinary income rates.

Also, the existence of a permanent death benefit allows you to use other assets more efficiently. For example, using a life income annuity can provide much better cash flow with favorable tax treatment, than just income from the asset, and the death benefit can replenish the asset at death (this can also be used in LTC planning).

[yos9694]

absolutely. when you reach financial independence. WCI dropped his disability and life insurance

What do you mean by financial independence? Usually that's when a person can support themselves on their own income, but I'm guessing you meant something else.

There is a point where life insurance changes from being a way to protect your family against the loss of their breadwinner/caregiver into a tool for growing tax-advantaged wealth. With regard to the latter, it's unlikely that anyone would call that "needing life insurance" but most people still don't just pass up the chance to improve their financial profile.

[ushdadude]

What do you mean by financial independence? Usually that's when a person can support themselves on their own income, but I'm guessing you meant something else.

There is a point where life insurance changes from being a way to protect your family against the loss of their breadwinner/caregiver into a tool for growing tax-advantaged wealth. With regard to the latter, it's unlikely that anyone would call that "needing life insurance" but most people still don't just pass up the chance to improve their financial profile.

I mean you can support yourself and everyone depending on you without working, relying on savings and passive income instead.
I was also referring to term insurance which is only use to protect others. If one is financially independent, they are protected already. It's basically like being self insured

[Yosel]

Getting a policy while pregnant has any effect on the premiums?

no

[yos9694]

I mean you can support yourself and everyone depending on you without working, relying on savings and passive income instead.
I was also referring to term insurance which is only use to protect others. If one is financially independent, they are protected already. It's basically like being self insured

That's what it sounded like you were saying, was just commenting on the strange usage of the term "financially independent".

No need to go into details here, but when someone has enough passive income to live on without working, they fall into a whole new world of financial products. Very often it's the same vehicles that are used by less wealthy people but repurposed. Term is most definitely used as a part of wealth planning strategies (not only to protect others). But a person who has enough money for this has specialists chasing after them and doesn't learn it on DDF.

[ushdadude]

That's what it sounded like you were saying, was just commenting on the strange usage of the term "financially independent".

No need to go into details here, but when someone has enough passive income to live on without working, they fall into a whole new world of financial products. Very often it's the same vehicles that are used by less wealthy people but repurposed. Term is most definitely used as a part of wealth planning strategies (not only to protect others). But a person who has enough money for this has specialists chasing after them and doesn't learn it on DDF.

It a pretty common usage eg FIRE.
Financial independence isn't just for the super-wealthy. In theory it's achievable by most people with a decent income. Certainly harder for frum Jews though. In general, I would be leery of anyone chasing me to sell me something.

[CountValentine]

Financial independence isn't just for the super-wealthy. In theory it's achievable by most people with a decent income.

Even middle class can do it.

[jose34]

Aren’t you a yeshivabucher??

Most of us a one at point