insurance
How do I protect my IRA with term insurance when the insurance company cuts the face amount at age 65 and I plan to live to 100? This is, of course, using life insurance proceeds to maintain retirement funds which can be passed on to my children, as per your system.
Permalink Submitted by Bruce Steiner on Tue, 2009-08-18 21:45
If you’re going to live to age 100, you’re probably better off not buying insurance. Insurance is a better deal for someone who won’t live that long.
But if you’re not sure how long you’re going to live, and you want to protect against the possibility that you don’t live as long as you intend, then the only way to do so is to buy insurance. It’s possible to get term insurance that will go beyond age 65, though I don’t know of any term insurance that goes to age 100 (and even if there were such a policy, it would cost too much in the later years to be practical). You could instead get a cash value policy (whole life, universal life, or variable life). In that case, you would pay more than you would for term insurance in the earlier years, but (thanks to the additional premiums in the earlier years), you could maintain the policy longer, in some cases even to age 100.
I’m a lawyer, not an insurance person, so I can only give you general information on insurance. But if you are interested in insurance, you should speak with someone who is licensed to give insurance advice, who can give you more specific advice based upon your particular situation and your objectives.
Bruce Steiner
NYC
also admitted in NJ and FL