Life Insurance
Nov 01 2022
Work had life insurance from Metropolitan Life Insurance Company which cost me $233.14 per month for $856k life insurance + $856k accidental death and dismemberment insurance.
Continuing both with a preferred rate (age 51 is $0.296 per $1k coverage) would be $253.38 per month so I guess my work only gave me a bit of a discount and probably due to being group coverage. Coverage would rise to $398.04 at 55 and $594.92 at 60 assuming no price increases which there would be.
Do I really need that much coverage? I don't have dependents so really all my stuff goes to my brother and sister who are well off. I think what I'd like is enough coverage to pay off my mortgage and maintenance for a couple of years which then gives my siblings time to decide what to do with my condo.
I'm thinking $500k life insurance. After 30% taxes that would be $350k enough to pay off the current mortgage ($300k) and a couple of years of expenses (property tax is $12k per year, HOA is $7500, PG&E is $1000, Sonic is $750 = $21250 per year).
Age 51 is $0.261 preferred rate so $130.50 per month, rising to $215 at age 55 and $330 at age 60. On the other hand by age 60 my mortgage would be about $225k so $400k life insurance is $264 per month.
Researching a bit more, life insurance payouts are generally not taxable, in which case I want $350k life insurance which is $91.35 per month.
Addendum, Nov 2: After looking at the form I need to fill out I decided to decline life insurance. I don't have a primary care physician nor have I gotten a physical in over a decade so I bet they'll want me to do that and probably within like 30 days and I don't want that stress. Non-preferred rate would be $1.006 per $1k coverage so $351.75 per month which is a bit excessive. I'll just have to not die any time soon. I have until Nov 14 so maybe I'll change my mind before then.
Continuing both with a preferred rate (age 51 is $0.296 per $1k coverage) would be $253.38 per month so I guess my work only gave me a bit of a discount and probably due to being group coverage. Coverage would rise to $398.04 at 55 and $594.92 at 60 assuming no price increases which there would be.
Do I really need that much coverage? I don't have dependents so really all my stuff goes to my brother and sister who are well off. I think what I'd like is enough coverage to pay off my mortgage and maintenance for a couple of years which then gives my siblings time to decide what to do with my condo.
I'm thinking $500k life insurance. After 30% taxes that would be $350k enough to pay off the current mortgage ($300k) and a couple of years of expenses (property tax is $12k per year, HOA is $7500, PG&E is $1000, Sonic is $750 = $21250 per year).
Age 51 is $0.261 preferred rate so $130.50 per month, rising to $215 at age 55 and $330 at age 60. On the other hand by age 60 my mortgage would be about $225k so $400k life insurance is $264 per month.
Researching a bit more, life insurance payouts are generally not taxable, in which case I want $350k life insurance which is $91.35 per month.
Addendum, Nov 2: After looking at the form I need to fill out I decided to decline life insurance. I don't have a primary care physician nor have I gotten a physical in over a decade so I bet they'll want me to do that and probably within like 30 days and I don't want that stress. Non-preferred rate would be $1.006 per $1k coverage so $351.75 per month which is a bit excessive. I'll just have to not die any time soon. I have until Nov 14 so maybe I'll change my mind before then.