Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (23411)	11/26/1999 1:53:00 PM
From: JDN	Respond to of 64865

Dear Sonki: I know, you didnt ask me, but here is my 2cts worth anyhow. Always lock in the longest term you can if you are young BUT remember to look at your TOTAL financial picture when deciding how much insurance to buy. JDN

To: Sonki who wrote (23411)	11/26/1999 2:33:00 PM
From: Brian Malloy	Read Replies (1) \| Respond to of 64865

Be careful with the insurance. You only need it to cover items that pose a potential hardship to ones family should you pass away ahead of time. When you have the time, go to the library and do a search on FORBES magazine. They did an article within the last two years that talks in detail about the Insurance issue. An insurance salesman will fit a round peg into a square hole if he can make a commission. Remember Sun Tzu: Know yourself and know your enemy and in a thousand battles you will be successful. A corollary is know the terrain upon which you will fight. So get the FORBES article. Find a good Estate Tax Planning Lawyer. Try to buy your term policy before the end of this year as due to XXX rates in most states will go up next year. Quick example: Someone 28 years old with a six figure salary, seven digit mortgage, three children under the age of seven and better have life insurance. They need a good estate plan. Someone 48 years old, two kids finished college, house paid for and plenty of money in the bank, fat 401K and IRA accounts has very little need for life insurance. They do need a good estate plan to minimize taxes. Buy term and put the differnce between term and whole into your favorite investment. IMHO

To: Sonki who wrote (23411)	11/26/1999 2:42:00 PM
From: Detail-MD	Read Replies (3) \| Respond to of 64865

OT-OT- Sonki, I used to be a licensed insurance agent and learned what no one wants you to know--that universal/whole life is one of the biggest SCAMS in history. If you die, you get the face value of the policy (i.e $100,000) but the company KEEPS the cash value you have "built up" in your savings. If you don't die, you can borrow your "cash value" for education purposes, etc., but you are borrowing YOUR OWN MONEY!!! PLus, they have control over YOUR MONEY while it is "invested". Better to buy only the amount of term ins. that you NEED--no more. Don't buy too much--don't buy what you can "afford"--you will probably be buying too much. Then put THE DIFFERENCE THAT YOU WOULD HAVE SPENT ON WHOLE LIFE in a good mutual fund or favorite stock. Then, if you/when you die--your family will have the face value of the term ins. policy A N D the value of your stock/mutual fund. You would have to dicuss how to shelter the mutual fund/stock portfolio from estate taxes with an accountant/lawyer. But this is the best way to go. You will also have "cash surrender charges" and other misc. fees with a whole life/universal life/cash value policy that are in the fine print and eat into your "cash value" when you want to cash it in. This is only part of the SCAM of life ins. co.'s--the only TRILLION DOLLAR INDUSTRY !!! I am not in insurance any more--was only in it for a few years when I was in undergrad. But I learned ALOT. PM me if you would like more info. I repeat I am not in ins. and only want to help--not sell you anything. I am in the medical/surgical field now. Just saw so many people have their life savings taken by ins. swindlers--and it is all legal b/c it is in the fine print!!! -Steve

To: Sonki who wrote (23411)	11/26/1999 4:22:00 PM
From: James Lough	Respond to of 64865

"If I renew in 10 years I will have to pay a lot more" IN 10 years you will need less coverage. I'm 69 now....the only thing I need is enough to cover burial. Buy term only...... Best Wishes........ Jim

To: Sonki who wrote (23411)	11/27/1999 12:45:00 AM
From: JavaGuy	Read Replies (1) \| Respond to of 64865

OT:Insurance Sonki, I mostly agree w/ Detail-MD. Insurance as an investment is lame. You are best off with term life only. I think 10x your salary is a good target. As for the length...if you are relatively young, as I am (31), do you think you will need life insurance when you are 50? I won't. I fully expect my port to be greater than my life policy before 10 years. So it's ten year term for me. Sure, you can always surrender a 30 year policy after 10 years, but you pay more. Even if you really want a 20 or 30 year policy, why pay for your older years now? Just renew the policy in another 10 years. 'Course, you better be in good health. :) I think a 10 year 1MM term policy for a 30 year old should be around $500 to $800/year, depending where you go. At those rates, it's pretty affordable. I checked schwab, after I bought somewhere else, and they seem to have rates on the low end. Good luck, JG

To: Sonki who wrote (23411)	11/28/1999 8:28:00 AM
From: nihil	Read Replies (1) \| Respond to of 64865

Look at variable universal life. You deposit first year premium, and invest in mutual funds and have a large face value. Each quarter the cost of your term insurance is debited to your account and any earnings on your funds are credited. If you are a clever investor (say a tech fund) you earn more than your insurance cost and don't have to pay a premium as long as the cash value stays above the level prescribed for your age. You or your beneficiary pays no income tax on the proceeds. It's like a Roth IRA with insurance coverage and no income limits. Best thing in the world for people who can pass an insurance exam. I haven't paid a premium in years. If you sign up for the additional insurance option, successful investing lets you increase your coverage. The value of my investment is too high, so I will have to withdraw something or it would be excessive (I don't have the additional insurance option -- I was 62 when I bought this policy). Your mileage may vary, but look into it and seek a policy with modest administrative costs. Tell these agents who are woofing you to send you proposals for a standard amount and for different assumed rates of return on your investments (e.g. 6%, 12%, 20%).