5 groups that really need life insurance

Most people don't think about buying life insurance until they've got a child on the way. But parents aren't the only ones who should consider it.

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VIDEO ON MSN MONEY

48Comments
May 19, 2013 4:48AM
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this article is another reason not to ever believe everything you read.  
May 19, 2013 10:01AM
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I sell life insurance and I STILL think this is a load of malarkey. When I talk to my attorney he says right or wrong he will defend me right down to my last dollar.  Same thing with insurance they recommend you insure everything right up to the point where you have no more money. Bought a toaster, the store recommended I get replacement insurance it case it stopped working. So I asked, can't I just buy another?

Life insurance it does have it's place but if you don't have true dependent needs then maybe not so much    

May 19, 2013 8:11AM
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What a bunch of Bologna this insurance article is. Save some money for hard times and let it work for you not the insurance goliath. They don't care one bit about you.
May 19, 2013 9:57AM
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Insurance Industry generated crap! Shame on MSN for trying to pass off this life insurance commercial as a news article.
May 19, 2013 10:14AM
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Wow - an article filled with half truths and bad ideas by the life insurance industry.  First of all, life insurance in general is not total without merit.  It can be used for some limited purposes, but not all the high-flying ideas come up with by the "experts" in this article.  Term insurance is much less expensive and fits the needs of most people for certain seasons of life (such as child rearing years).  Whole life can be useful as a overall financial portfolio diversification (small %), for estate tax purposes and for some business reasons like buy/sell purposes.  But really, how many people need any life insurance for estate tax purposes with the estate tax exemption at $5,000,000 per person ($10 million/couple)?  Are you really going to have that many assets when you die?  Here's an idea - when you get to the level of owning more that $5,000,000 of assets per person why don't you give the excess away to charities you want to support rather than to the blood-sucking black hole of government at your time of death?  Or while you're alive gift appropriately to family, friends or people in need - people YOU choose.  And do I really need whole life insurance because I may need to raise my grandchildren?  What a crock - I guess I should buy life insurance because anything I can think up might happen!  And I about fell out of my chair laughing about the suggestion that small-business people need whole life.  Especially the part about funding an employee 401k plan.  What a riot!  Buying whole life for small business owners is probably the worst idea ever.  First of all, all small businesses need capital, so why spend your cash on a non-deductible expense (that's right, life insurance premiums are non-deductible for income tax purposes for businesses).  The whole idea of having your own small business is that you hope to make a much better rate of return on your investment than the 3-5% dividends granted in whole life policies, so why put your limited capital towards that limited rate of return? And borrowing from the cash value of a whole life policy to fund a 401k is ludicrous! You get to pay 6-8% interest on the life insurance loan for the purpose of setting up a costly benefit for employees, while the growth in the cash value of the policy is retarded while the loan is outstanding. There are better ways for small employers to take care of their employees.  If you can't fund an employee benefit out of operational cash flow then don't do it!  And finally, just the whole idea of a loan on a whole life policy for anybody is horrible, second only to borrowing from your IRA or 401k.  I better stop there.  Reading this article is like listening to a realtor telling you why you need a bigger house or a car salesman telling you why you need a fancier car!
May 19, 2013 3:22AM
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Where's the girl that was on the headline that took me to this article? Asian girl, quite beautiful. Sucked in again. Damn.
May 19, 2013 9:10AM
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Brought to you by the Institute of America.
May 19, 2013 9:43AM
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If you have someone dependent upon your ability to bring in money to live a decent life, then you need life insurance so they may continue their lives and hopefully adjust to you not roaming the earth. But other than that, it seems a waste of money, with one possible exception:  life insurance on your business partner or key personnel in your small business. If it can negatively affect your small business, I can see some logic in that decision.

But to get life insurance just to leave something to your heirs or favorite charity seems silly.  Spend the money on them while you are living.


May 19, 2013 12:10PM
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in response to Bella, for goodness sakes please do not listen to this person.  It is abundantly evident that this person is speaking not based on knowledge, but yet  from (extreme ignorance) concerning life insurance and laws set forth to regulate insurance companies. There is a need for Life insurance for most every one, especially for those who earn medium to lower incomes.  And yes term life is the preferred choice, but not necessarily so the senior person who may not be financially positioned to self insure. Please for the sake of those who should and need to make educated decisions concerning life insurance, keep your uneducated opinions to your uneducated self !
May 19, 2013 5:30AM
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 the stooge cant sell anythng to me,  term or whole, i do not fit any of these 5, i have 0 brats, 0 heirs, any bills i leave behind the fascist gov will just have to suck it up, they can just bury me in potters feild or cremate me or w/ever the fascists do, since  ill be dead, i dont give a flying  fvck, i intend to leave as much debt as i can.
May 19, 2013 7:24AM
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it's embarrassing to read these comments,you are unaware how ignorant you really are...
May 23, 2013 7:55PM
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OK. These 5 groups could possibly use life insurance. But why only cite the marginal cases?

The typical profile of a term life insurance owner is someone who is a family breadwinner and has minimal savings (yes, this could include grandparents in the role of parents).  

Term Life Insurance is about covering specific needs that will disappear with time, such as:
- Income replacement
- Financial security for dependents
- Mortgage protection
- College funding
- Final/burial expenses

If you have a primary need for life insurance - or you are in one of the article's 5 groups - and you aren't insured, look into getting insured, now. Rates are at an all time low, but predicted to go up soon.

To get the best price, use the on​line life insurance quote engine at QualityTermLife for comparing rates from dozens of top companies. http://www.qualitytermlife.com
May 19, 2013 4:24AM
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this article was written by a insurance selling stooge.
I do not agree with most of his direction.
#1 is NEVER BUY WHOLE LIFE!!!!!
IT IS ALWAYS A BAD DEAL!!!!!
DO NOT BELIEVE THE BS
RETURN OF PREMIUM, BORROW AGAINST IT IS ALL CR#P!!!!
THE MATH THAT THEY USE IS ALWAYS BOGUS SMOKE AND MIRRORS.
If you need the insurance --
TERM ONLY
It is much less expensive.

Mar 28, 2014 11:53PM
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I watched my father pass away at 53 years of age, and leave my mother with a mortgage and barely any retirement money.  She had to work to pay down the mortgage and now lives off of social security and not much else except for the occasional help I give her.  My father could have had life insurance for barely anything, policies are about $15 bucks a month now from sites like LifeAnt and intelquote is good too.  No one WANTS to need life insurance, but we all can die, and unfortunately you have to bite the bullet and just do it. At least its peace of mind if nothing else. 
May 19, 2013 2:51PM
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Insurance companies are willing to insure you whether it is term or whole life.  The fact , is that they pay out 1 claim in 700 lives insured.  They are betting that you will live, and you are betting that you are going to die....if you live to be 65, and do not have any major health issues, you will likely live until age 95.  Most people have either cashed in their whole life, or their term insurance had expired long before you reach 95.

 

Take what money you can and invest in log term growth income investments.  By time thirty years have passed, you should have more money than you can spend.  Then when you are your spouse dies, they will continue to have enough funds to live on for the rest of their life.

 

You do not need to leave anything to the children...let them get off of their **** and do the same thing you did.

 

 

May 19, 2013 10:22AM
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Great ad for insurance companies!
May 19, 2013 3:26PM
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I found something that MetLife is not upfront and honest about.  I asked one of their agents if they share or sell my information.  He assured me "no they do not share your medical information; if they did they would go out of business real fast".  Needless to say this is not true.  Buried in one of the papers that they have you sign allows them or their reinsurers to submit "a brief report of my medical personal health information to MIB".  MIB stands for Medical Information Bureau.  MIB makes it a lot easier for other entities to access your personal medical information.  This in its self makes what I was told by one of their agents deceptive.  On top of that there is nothing on the paper that you sign telling you what MIB is or why they are submitting a report about you to MIB.  They also state that they can redisclose information about me as authorized by me in writing OR as permitted by applicable law, except their contract does not abbreviate "or".  I believe these to be clever but deceptive ways of getting you to sign away your rights on your ability to protect your personal health information, but sometimes you don't realize it until much later since their agents and contracts are not always clear, upfront, and honest about it and most people do not know what MIB is or what is "permitted by law".  I would recommend that anyone signing their authorization forms (or anyone else's forms) cross out the part about them sending reports to MIB and cross out the "as permitted by law".  I would also recommend adding a line that states they must notify you AND get your CONSENT each time your information is disclosed by them or their affiliates along with a detailed description of why your information is being disclosed, and the exact information that is being disclosed.  I would also recommend adding a line stating that anyone they disclose the information to must also abide by the same rules and sign a contract stating as such prior to disclosure.  We as individuals need to start demanding better treatment of our personal information.  We are the ones keeping them in business, but they do not seem to respect that.  I also believe that trying to force us to sign contracts with things such as these in them or denying service is just another form of extortion.  If we all stand up to this together then we can and will make a change.  If anyone from any legislative branch is reading this then I would appreciate it if you would help by making it illegal to put such things on a policy that obviously do not benefit the person signing and was meant to trick them into giving up their privacy rights.  Personally I believe that companies such as MIB should be deemed illegal and should be shut down.  This is like the ultimate invasion of a person’s privacy.  Why do we even have HIPAA laws when there are so many ways around them?  On a positive note there are some policies out there that are much worse than MetLife and seem to exclude just about everything that you could possibly die from.  I don’t know why anyone signs those types of exclusion contracts unless they aren’t reading anything on the contract.  Anyway these are my personal opinions I would be interested in hearing yours.

 

May 19, 2013 2:59PM
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Life insurance is very much of a necessity for most people, but only term life. I sold insurance for many years but not cash value or permanent as they like to call it. Also if you have a spouse of either gender staying at home with the kids they need to be protected also. Usually it can be done with an inexpensive rider on the primary insured person. Unfortunately I have had to pay for the loss of a stay at home spouse several times. Unfortunate because it is such a sad event! But because they were insured, the spouse that works outside the home had options financially. It made a big impact for the family.
May 19, 2013 12:29PM
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Willing to be the author has some stake in life insurance stock.   Seriously.    

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