life insurance

How to handle Life insurances

We have two policiies. My wife's policy is a fully funded whole life policy worth $200K; she contributes nothing to it and it will pay to the estate when she dies. If I show this as life insurance, do I show it as a cash value of $200k?

My life insurance is a bit different. My former employer fully funded a life insurance policy for me worth $700K upon my death. Should I put this in the "special" folder and show a future value and then the expected year of my death?

Life Insurance - help interpreting recommendations


I have some questions about the Life Insurance Recommendations. I have read the User Manual and other posts about Life Insurance so I believe that I understand the systems' approach but am still a bit unclear about the recommendations and how to properly interpret it.

In the Report, for 2015 Recommended Amount Life Insurance, the system recommends $650,000 for me in 2015.

Then in Annual Suggestions report, for life insurance, it shows numbers through 2021 although I expect to live much longer past 2021.

Term Life Insurance

In short How do I model term life insurance expiration?

Currently my wife and I have term life insurance. My intent was to carry this term insurance until its expatriation [This is to ensure college funding and protect from loss of wages prior to retirement] We also receive insurance through work which is life insurance that will end at retirement. (so it is like term)

I can put the term premiums in as special expenses but how do I make the insurance go away when it term is over?

In short How do I model term life insurance expiration?

Life Insurance

I tried to set it up to tell me how much my wife and I can spend if we want to leave each of our 2 kids $1M each out of a current estate of $3m -- we would spend less to do that, live off of SSA and pensions, etc, to preserve the $2m. However, the program wants us to spend absurd amounts on term life insurance in our 80s, which no one would do, presumably in order to fund the bequest. Is there a way to keep the insurance recommendation out of the report?

future life insurance recommendation - current dollars?

ESP recommends life insurance for me in the future but not now. The recommendation is that I have insurance coverage starting in 2025, when I start drawing SS at 70, through age 99 in 2054. The peak amount is about 100K in 2029, age 74. Coincidentally, that's when the premiums on my current term policy are no longer level. It's good until age 95 but at potentially phenomenal rates.

Contingent Planning

I've used E$Planer for several years, but just setup contingent planning for the first time. My spouse and I are just past our mid-fifties and she's currently out of the work force. Her standard of living is extremely low until retirement age even though my life insurance currently exceeds the the recommended amount in the standard report. The survivor spreadsheets clearly show my retirement assets transfer to her; is it necessary to enter a special revenue entry for the year she receives my life insurance benefit?

Life Insurance Late in Life?

After using the online SS calculator, I put the results in ESP. We changed from my spouse taking SS at 66 and me taking at 70 to both taking at 70 with my wife taking spousal at 67. We plan to retire in 2015 and I am 7 years older than my wife. The result added ~$500/year in available consumption however it added ~15 years of recommended life insurance for me from age 72 to age 87. I plan to live to 90. What could be driving the progtram to recommend this?

Life Insurance Premiums

How can I adjust the household life insurance premiums so that they are accurate? The actual premiums paid are ~$9,000 annually, but the program has calculated the current amount of annual premums to be $36,442. The recommended annual premium amounts are not realistic at $68k - $130k depending on the year. I adjusted the assumed load on life insurance premiums to zero, but that only made a slight difference. Thank you.


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