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Related: Culture Forums, Support ForumsEx wants me to keep $125k life insurance policy with her as beneficiary
I'm 53 and on full disability right now and her line of thinking is that I'll be dead before my term life policy expires in 6 years. She said she's even thought of paying the monthly premium herself as she'd still come out over $110 grand. But she'd prefer if I kept paying the monthly premium because my death in that time frame isn't a sure thing and she'd then be out several thousand dollars.
I laughed and said "I love you too Honey!"
ohiosmith
(24,262 posts)in a pig's ass.
siligut
(12,272 posts)I don't know how long you were together. It sounds rather cold really . . . sorry, glad you can laugh.
Good thing Mr. gut loves me, he would come into a lot of money if something happened to me.
Kaleva
(36,328 posts)The kids are hers. Parents are long dead. My siblings are very well off themselves.
As my ex and I are still very much connected (we talk twice a day and are often at each others places) I'll probably keep it the way it is for now.
Scuba
(53,475 posts)... if you can afford the premiums.
Assuming I'm still alive, I plan on offing myself one month before I can no longer afford mine (wife, kids are beneficiaries).
Dyedinthewoolliberal
(15,586 posts)Public radio stations, little leagues, the local high school Arts department.............
zbdent
(35,392 posts)PoliticAverse
(26,366 posts)Best wishes for good health.
Baitball Blogger
(46,756 posts)with some foundation that will be beneficiary and will carry your name.
No wonder your ex is your ex.
riderinthestorm
(23,272 posts)Just kidding....
.... kind of.
Kaleva
(36,328 posts)She sees things differently then most others would but she really believes that others view the world the same way she does.
rurallib
(62,444 posts)zbdent
(35,392 posts)if I were you, and figured "I" was going to die soon enough, ...
I'd take out a bunch of loans in her name ... so when "I" die ... she's stuck with the bills ...
Chan790
(20,176 posts)If so, it makes sense to maintain the policy with her as beneficiary (Personally, I'd make her make half the payments though) to protect the asset.
If you switch it to the kids and something happens to you and they inherit, they are required to exhaust a far larger % of their assets before becoming eligible for any federal financial aid. I have a friend from HS whose father died unexpectedly and left a LI policy for $250K that was meant to insure that Mike could afford to set up a life, buy a home, etc. Because he died (at age 53 actually. Esophageal stricture rupture) the summer before Mike's freshman year, Mike was compelled to take unsubsidized loans and the private college that had been planning on giving him $30K/year in FA instead took $225K of the LI in tuition over 4 years and gave him nothing in FA. If Mike's dad had made the policy out to Mike's mom instead or to a trust that paid out on a 25th birthday after covering approved life expenses like college, Mike would have been left with about $100K and would have received some FA.
Really, regardless of circumstance, if you're planning to continue to co-mingle long-term and retirement financial assets, you jointly need to sit down with a financial advisor to discuss these issues. Particularly if the assets are substantial (the LI policy alone qualifies as substantial), you may benefit from discussing a variety of vehicles to ease inheritance and taxation issues. Because you're no longer married, if you died tomorrow and she were your inheritor, there would be likely financial and logistical consequences including but not limited to probate and outstanding debts that can be smoothed with a bit of advance planning.
My blanket advice to anybody regarding end-of-life planning is that they need to meet with a lawyer regarding a will (doing it cheap with a DIY kit or a LegalZoom is a bad idea for most everybody.) and an FA regarding any inheritance and estate-taxation issues. In your case, I'd emphasize it repeatedly. Yes, both cost money but what they will save you in money to say nothing of ease-of-mind pays for it.
*takes off banker/financial-advisor hat*
(Standard Disclaimer: I am no longer a licensed banker, nothing previous should be construed as financial advice as opposed to friendly advice. Meet with a licensed financial professional.)
Edit: I know. Nobody wants to do it and FAs are crooks, right? Do you have a bank or Credit Union you've been with, like and trust? Go in and talk to them, they either have an FA on staff or can refer you to someone they work with who isn't shady or a crook. The same is true of many unions, whatever your circumstance...you probably already have a relationship with an entity that can assist with these issues.
Kaleva
(36,328 posts)My insurance premium is 1/10th of what I get for SSI. A rather big expense considering my limited income. A lot to think about though as I can't get any smaller and thus cheaper policy, other then basic burial insurance, because of my health history.
dimbear
(6,271 posts)You'll need to do some math, you both come out ahead. Assuming you trust her not to whack you.
Perfectly legal.
HopeHoops
(47,675 posts)Go for the payments.