Term life ins - No medical exam

[Murph]

^ It depends on how much debt you will leave to your heirs.

[CosmoGirl]

Isn't debt written off when you die?

[Murph]

No.

[CosmoGirl]

What happens?

[Scrumtrilescent]

Your heirs have to pay the piper.

[CosmoGirl]

For real? That isn't fair.

[RedMage138]

For real? That isn't fair.

How is that not fair? People would just carry tons of debt until they die and then it would just get written off. That would not be fair.

[Guest]

dammit!! Foiled again!

[Mesmer]

How is that not fair? People would just carry tons of debt until they die and then it would just get written off. That would not be fair.

Creditors have claims on your estate, but it's not like your kid is going to be paying off your ass for the rest of his life. It doesn't work like that.

But yeah, everything, the house, cars, etc would all go

Oh and I've heard that the magic number is half a million of LI for each you and your wife, for 1m total. That's what all the knowitall professors say around school anyways.

You will be paying out of the wazoo with term, so I'd try to avoid it if you can.

[Happy Panther]

Your heirs have to pay the piper.

From my understanding this is generally not true

[Happy Panther]

I guess to be more specific...debts have to be subtracted from assets before they are inherited. But unless you are a cosigner on some debt you are clear.

Husband and wife are different though

[pstall]

For a single person, term and that may be to settle debts.

The estate happens when you do NOT have either a will or a Trust of some sorts. You have those to AVOID the Estate process and then probate. That is what ties up time and can incur debt onto anyone that inherits something.

My advice to anyone with kids, get term, invest the difference and make sure you have a living will AND a Trust.

I have all my bene's split in half. One half to immediate family, the other to the Trust. This cuts down tax implications and puts some proceeds into a controllable scenario by the person named in the living will to "manage" those funds. This also keeps probate out.

There are alot of rule of thumb's on how much coverage to get. If you own a home, have enough to pay it off. If you are single that might be all you need plus any outstanding debts.

Have two copies of the will if not more. One in a safe dep box, one with your attny and one on a hard drive. Maybe even one to a trusted friend/relative.