# Life insurance, etc.



## WildBillTN (Feb 1, 2006)

I am six weeks away from retirement. I want to reduce my expenses and try to save money, since my income will be considerably reduced. I am considering dropping my life insurance policy, since I don't have any debt and have enough money saved up for my kids to cremate me and give me a good send-off. Also, I think I should reduce my car insurance by keeping liability and drop the collision coverage. I drive a 2002 pickup truck, nothing fancy.
Is this a wise decision? Any advice?


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## jassytoo (May 14, 2003)

We dropped life insurance too. If you are out of debt and have the final expenses covered I don't see a problem with that. My MIL carried term life for years and when she died at 86 it only paid out 1700 anyway.If she had put that money in the bank she'd have had a lot more than that. If your spouse needed money to live on after you're gone that would be something to think about. It doesn't apply in our case.As for car insurance that depends on what you are comfortable with, if you had money for another vehicle if that one was totaled etc.


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## countryfied2011 (Jul 5, 2011)

WildBillTN, we are looking at those same things...havent thought about the life insurance though...both DH and I want to be cremated. DH has two policies that he has had for ages, both of them are ones where you can cash out and the amount is not much when you do(He got them before we met). One he has had since 1996 and I feel like we are wasting money, but yet we have paid this long. So it is something for us to think about. We pay 120 a month for both of them and they are both only for 20,000 each.

We have 3 vehicles, DH wants to take off the collision of the Dually Dodge 1998 since we don't have a fence company anymore but wants to leave full coverage on the Expedition 2005 with only 50,000 miles on it. My Cube 2009 is still financed so I have to keep it on there. I hope to have it paid off shortly.


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## jwal10 (Jun 5, 2010)

I have a paid up $20,000 life insurance policy. We could borrow against it but it continues to pay dividends. We only insure the HHR year round, the minimum. Pickup summer only for 2-3 months....James


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## Rick (May 10, 2002)

WildBillTN said:


> I am six weeks away from retirement. I want to reduce my expenses and try to save money, since my income will be considerably reduced. I am considering dropping my life insurance policy, since I don't have any debt and have enough money saved up for my kids to cremate me and give me a good send-off. Also, I think I should reduce my car insurance by keeping liability and drop the collision coverage. I drive a 2002 pickup truck, nothing fancy.
> Is this a wise decision? Any advice?


We cashed ours in to buy land. 

Will Mrs. get a check if you pre-decease her?


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## WildBillTN (Feb 1, 2006)

No Mrs. here, as I divorced six years ago. Just me now, with three grown kids out of the nest.


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## whodunit (Mar 29, 2004)

I thin dropping the LI sounds fine, but I would check on the auto insurance. The premium may not be all that different. Dave Ramsey has some advice on that issue, but I can't remember his reasoning exactly. I guess one question is if you totaled the truck on your own could you simply write a check to replace it?


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## Rick (May 10, 2002)

whodunit said:


> I thin dropping the LI sounds fine, but I would check on the auto insurance. The premium may not be all that different. Dave Ramsey has some advice on that issue, but I can't remember his reasoning exactly. I guess one question is if you totaled the truck on your own could you simply write a check to replace it?


LI check should cover a truck. Sad thing about full coverage AI is if you use it due to accidents charged to you, eventually you will be cancelled.


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## tallpines (Apr 9, 2003)

My DH has plenty of Life Insurance --- not term.

Yet when he retired a couple years back, the people that pay his pension offered him ANOTHER Life Insurance Policy.
$50,000 for $100 a month.

He studied it for awhile, talked it over with the financial advisor and decided to take it.

He figured it was a better investment than the bank or stock market as long as he has a normal life expectancy and doesn't live past 100.


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