Do I need life insurance at 58??

  • by rrgitars
  • Mar 12,2019
  • 13 answers

I'm 58 married-both kids adults and working full time. With are close to owning the house free and clear-worth about $600,000. My wife has a great career and a nice 401K and a great job, she is 53.
My term life has expired and she wants me to get another policy- for about $400,000.I don't have much in my 401K.
It wi cost about $125 per month for a new 15 year term policy. ,
Is this necessary????
***We have about $80,00 in savings as well. Thanks


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Insurance Answers (13)

car253 3 months ago

I would definately get the 15 year term life insurance policy. $125 a month is not a lot to pay. If you die your spouse will seriously need that money so she does not lose the house. You need to pay down your credit cards but you need the life insurance.

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Dawna 3 months ago

I had it when I was 28 but I let it lapse because I couldn't afford payments so all of the money I paid on it is gone

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mbrcatz 3 months ago

What's the job you want it to do? If it were me, I'd pass on that insurance, if I don't have a specific job I need it to do for me.

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Insurance Pickle.com 3 months ago

You don't really ever need it unless a bank says you need it to secure a loan. You may want it, but nobody here can tell you that. If you died yesterday, what would your wife do? How would that impact her financial situation if she no longer had your income? Does that concern her? Does that concern you?

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Mrinalini 3 months ago

I don't think so.

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StephenWeinstein 3 months ago

I don't think so.

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curtisports2 3 months ago

How much longer do you expect to work? How much income would be lost between now and then if you died without insurance? Don't forget to include any loss in pension income payable to her that would occur if you didn't 'make it far enough'. How far would $400k go toward replacing that lost income? You already know how to calculate the cost of the insurance. I would consider getting a term policy that covers you only up to when you plan to stop working. You really aren't insuring anyone's life with life insurance, you are insuring against the loss of that person's income. Once the income no longer needs to be replaced, insurance is not necessary.

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Judy 3 months ago

I wouldn't, but you have very little saved for retirement for your age and financial status.

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Politically Correct 3 months ago

You need to talk to your wife about how she came up with that number. Generally people use term life insurance for something specific such as to pay off a mortgage or put children through education.
What would an extra $125 a month towards paying down your principal do to your mortgage term?
You do not have much in the way of savings. My recommendation is that you fix that as a priority. Start throwing money into a Roth IRA. Consider getting a better paid job and cutting down your expenses if you cannot afford to put aside at least $1,000 a month.

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Eva 3 months ago

Term life insurance is a poor investment. You would do better to have a smaller policy (no more than $50k) and invest the difference in premium in something else.

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lucy 3 months ago

The question is, does your wife also have life insurance? The reason for buying life insurance in (most) cases is for the survivor to live on, since there will be 1 income vs 2. Also, no one knows what will happen in the future, if one of you gets sick and unable to work.
My late husband at age 51 took out a 20 year term policy for $100,000 at $122 a month. At that time we had $100,000 left on our mortgage, thus the "thinking" was that if he died, then it would pay off the mortgage. Then at age 54, was diagnosed with Parkinson's Disease, thus from that moment on was (uninsurable) for another life insurance policy later on, if he chose to get one.
So in June 2016, the house was paid off and his life insurance expired in the same month. So, even if I wanted to get another life policy and with his PD, then all I could have gotten was one of those "funeral" or small polices for a max of $25,000, since he was disabled.
If she becomes sick or disabled, then could lose her great job and her savings. As for her 401k, that could be a problem, (IF) we go through another recession. I had great 401k's that I did not invest properly like most of us and in 2000, lost about $185,000 in stocks alone. Then in 2008, again lost more with the 2nd recession.
Unknown what your expired policy value was, but how did she come up with $400,000. And if she were to die unexpectedly (car accident or cancer) are good examples, then she should have life insurance to cover you or for you to survive.
When/if you retired, then the saying goes, then your expenses stay the same and I have found that to be true. When my husband died, we were both receiving SS benefits, but after we went from $3,000 to $2,000, since I lost mine and picked up his.
The only advantage I had was selling our house and downsizing to a smaller house that I paid for, thus still no mortgage, and my utilities and other expenses are less since going from a 50 year old house with a lot of maintenance issues, 4000 square feet to a new house at 1500 feet that is easy to maintain.
Per your other questions you have some serious credit card debts of around $100,000 that could cause both of you to work longer or keeping up.
I suggest you make an appointment with a financial advisor for advice.

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Beverly S 3 months ago

$80.00 in savings?? Yes!

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real estate guy 3 months ago

125 for a 400k policy for a 53/yo sounds like a good price. It's hard to say.

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