Missus_Aitch_99 t1_jegroal wrote on March 31, 2023 at 10:14 PM

He’s not a financial planner. He’s a life insurance salesman.

Lessings_Elated OP t1_jegrqjz wrote on March 31, 2023 at 10:14 PM

Ugh.

r3dt4rget t1_jegl3td wrote on March 31, 2023 at 9:27 PM

What exactly were you hoping to insure against if you die if you are single? If you are interested in retirement, simply contribute that $100 to retirement…

Lessings_Elated OP t1_jegl848 wrote on March 31, 2023 at 9:28 PM

It was presented to me as another pool of money to have in addition to my retirement

Edit: why did someone downvote this that’s not helpful I’m trying to learn here jfc

r3dt4rget t1_jegljqv wrote on March 31, 2023 at 9:30 PM

It was a sales tactic. Drop the policy and pay off your CC debt faster. If you ever get dependents, buy a term policy to cover them in case you die and they lose a primary source of income.

Lessings_Elated OP t1_jeglm57 wrote on March 31, 2023 at 9:31 PM

Ok thank you

occams_icarus t1_jegmesf wrote on March 31, 2023 at 9:36 PM

Yeah absolutely. If it's whole life policy I would drop it, they make a much higher commission off whole life then term. Do you think you will have a family though one day or at minimum a partner? It wouldn't be a bad idea to lock in a term policy now if you think that may be something you are interested in because the monthly rate would be a lot better now then later as you get older, gain weight, etc...

Lessings_Elated OP t1_jegobdn wrote on March 31, 2023 at 9:50 PM

Totally! I’d love a partner one day and yes the lower rate locked in is one of the pros …

occams_icarus t1_jegp965 wrote on March 31, 2023 at 9:56 PM

Is this a whole life policy they sold you?

[deleted] t1_jegqp15 wrote on March 31, 2023 at 10:07 PM

[removed]

musing_codger t1_jegnwlp wrote on March 31, 2023 at 9:47 PM

There are two reasons to buy life insurance. The main one is that you want to provide for someone financially in the event that you die. That doesn't seem to be the case here.

The other is that it can help with some niche situations. It can be used for tax deferrals. It can also be used to protect assets from creditors. But it is an expensive way to do those things and is generally only appropriate for very wealthy people.

But the commissions on selling life insurance, especially whole life, are very high and so insurance salespeople will jump through all sorts of hoops to convince you that you need it.

Lessings_Elated OP t1_jegoe80 wrote on March 31, 2023 at 9:50 PM

I feel taken advantage of - he seems so nice

TyrconnellFL t1_jegu8h9 wrote on March 31, 2023 at 10:33 PM

Of course he does. Irritating, obviously slimy salesmen make no sales.

InglrsBztrd t1_jegtoqh wrote on March 31, 2023 at 10:29 PM

That’s not a financial planner that’s an insurance salesmen, he’s after your commission not your best interests. Also just curious, if you have no family/partner who did you set at the beneficiary for this life insurance policy?

michaelyup t1_jeh0mqe wrote on March 31, 2023 at 11:21 PM

I’m just a few years older than OP and single, no kids. Beneficiaries in order, Mom, brother, niece. 50k policy, no one is getting rich when I die, but they’ll have enough to do a funeral or whatever they want, maybe a little spending money leftover for their trouble.

Lessings_Elated OP t1_jegv7rk wrote on March 31, 2023 at 10:40 PM

A best friend from childhood - effective brother I suppose

Ineedanro t1_jegxwuj wrote on March 31, 2023 at 11:01 PM

Some forward steps for you, OP:

Read the wiki here. Learn about and implement some of the recommended retirement saving strategies. Start now.

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Lessings_Elated OP t1_jeh1lvv wrote on March 31, 2023 at 11:29 PM

Thank you!

MissAnth t1_jegyme7 wrote on March 31, 2023 at 11:06 PM

Your financial planner wants you to have the life insurance because he gets a commission on it.

Who is your life insurance beneficiary? You don't mention having any children, or any other people who you support or who depend on your income. If the only person you support is you, you do not need life insurance. Life insurance is so that those people who depend on you can still have a roof over their heads and survive if you die. If you and a partner split a mortgage 50/50, your partner may not be able to keep the house by themselves. In that case, you should have life insurance on each of you to cover each of your halves of the house, so your partner can continue to live there.

Some employers provide minimal life insurance as a benifit. Usually, it's about 1 year of salary. That's plenty for a person with nobody who depends on them. Maybe even overkill, but if the employer includes it at no additional cost to you, take it.

Lessings_Elated OP t1_jeh1rr6 wrote on March 31, 2023 at 11:30 PM

He made it sound like it would be another pool of money for me to have for retirement in addition to my 401k - its a kind that I can take from before death / it terms out

[deleted] t1_jegl30n wrote on March 31, 2023 at 9:27 PM

[deleted]

CenoteSwimmer t1_jeh0cec wrote on March 31, 2023 at 11:19 PM

Your 401k people were correct. Personally, I do have a life insurance need: I am a parent. I locked in a term life insurance with $250,000 payout when my kid was 2. Sixteen years later, I still pay the same rate, which is $38/month. I am in my 50s. It is not an investment, it is insurance to replace my income and support for my child, which is the reason to have insurance. When the fixed rate term ends, and my kid is done with college, I will cancel it. You do not need insurance. It was sold to you for commission. Don’t feel bad - you are not the bad person here. Cancel it and go on with your great social justice life

To life insurance or not?

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