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Discussion Starter #1
I am divorced, 39, no kids, and I have 3x my salary coverage through work.
75% equity in my home, but I have a 250K term 20 policy with 14 years left.
Right now i dont need it but I am keeping the policy because if I remarry it would be nice.
I can always get a new policy but they cost more as we age.
I know this is a general question with lots of variables, but I would like your thoughts.
I pay 30.65 per month. Not much, but a small leak can sink a big ship.
 

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Interesting question. With no dependents, and a positive net worth, one wonders why you would need life insurance, as long as there is enough money in your estate to pay for your funeral. The 3x salary coverage through work may only be as secure as your job of course.

You should look into how well covered you are for disability. The life insurance will only pay if you die, after which you won't care. But if you have to live on a reduced income, and still pay a mortgage you could have problems.

Also, look into whether or not you "have your affairs in order". Is some relative going to be stuck with trying to settle your funeral & estate with insufficient funds?
 

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Doesn't look like you need. If you want more coverage you can most likely increase your group plan from work at a much lower rate. If something were to happen to your job you can choose to take over the group plan. I really don't see a need for it, but if you have a good cashflow you might as well keep it.
 

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I pay 30.65 per month. Not much, but a small leak can sink a big ship.
For 30.65 per month I would keep it.

And your ship analogy doesn't hold water either... Ships leak water all the time, they have bilge pumps. As long as the bilge pumps pump more than the leak you are fine.:D
 

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Discussion Starter #5
One of the reasons initially for the 2nd policy was to have insurance if I changed jobs. Also I was married so more was needed to replace my income. But my job is safe unless I quit or kill someone. Even then I would almost still have a job.
There would be more than enough money for the executor just from the work policy alone. Rsp after tax and house proceeds will leave a substantial amount.
 

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Doesn't sound like you need the life insurance then. So consider whether or not you would be better investing the premium in disability insurance or in paying down your mortgage.
 

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This might sound morbid but I've heard there are people who invest in other peoples life insurance policies. I believe it would be a pool of thousands of policies.

Perhaps there is a firm or charitable organization that would be willing to take over your payments and give you a "signing bonus". Otherwise it may be prudent to divert your payments to critical illness and disability insurance.
 

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Discussion Starter #9
I have disability insurance. Isn't critical insurance the same thing?
If I list a charity as a benificiary can I deduct the montly premium?
 
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