LSF as my life insurance beneficiary

[Lloyd Danforth]

Unless you seriously believe that the LSF would fall about w/o you.

Tracy

I think he means the Life Insurance mostly as a gift to the LSF and not to make up for his absence, should he.....you know.....assume room temperature.

[tracysaboe]

If that's the case then, he's not really using his life insurence as .. well, life insurence. He's using it as a savings account to give to somebody else after he dies.

There are better financial vehicles that are actually designed to do those sorts of things.

Some insurence companies, would notice the lack of insurable interest and worry about fraud and cancle the policy.

He would be much better off giving the $13/month directly to the LSF endowment fund. Then in 40 years or so the LSF would have gobs of money, and he could potentially still be alive.

Seriously, if that's what you're using it for. These days people live to 100 or so and it's not unheard of. Average life expectancy is around 80 years old these days, and w/ NH being a healthier state it's even better and will continue to improve. You're going to look back 60 years from now and say "Man, what a waist." Expecially considering most term policies are 30 year term and step up a little every 5 years after that.

My philosophy is, if you don't need life insurence -- you shouldn't have it.  If you've got a wife, or a family, or a business, or whatever that would be financially injured by your demise. Then that's a need. But a person that's fairly automomous, doesn't really have a need for it.

Ultimately do what you want. It's your money. But I really think that if Mike thinks this through, he'll come to a simular conclusion.

Tracy

[Michael Fisher]

Life expectancy statistics are as meaningless as the CPI.

I'm not going to cancel my life insurance. Thanks for the advice though.

I do not have any faith in dollar-denominated investments and will avoid them whenever possible. 

[Lloyd Danforth]

I could encircle Mike's waist with my fingers.

Not that I would, though

[Russell Kanning]

I don't have any life insurance to donate. My ex-wife wanted to up to payout a month after she kicked me out of the house. I cancelled that puppy within the hour.
Mike is a nicer guy than me. I have too many people that would prefer me gone and the LSFund enhanced.

[Kat Kanning]

I don't prefer you gone.

[Kat Kanning]

Now that I doubt.  I can't image him chubby   

[FSPinNY]

Better get your book out again Tracy.  Insurable interest is not an issue here.  Your own life is of the highest insurable interest, you can insure others in your life as well, such as your spouse, children, parent, or business partner. I cannot buy insurance on someone that I do not know, or someone that I have no insurable interst in, like a celebrity.  Nor can I buy property insurance on the Wonderland Ranch!

Beneficiaries are not considered in insurable interest.  A policy owner has the right to choose anyone or any organization as beneficiary.

[cathleeninnh]

Yeah, I was going to point that out too, but I also think that the LSF would benefit more by the $13 dollars a month or whatever that premium is, than the benefit payout. Mike is correct that we should promote that option, though.

Cathleen

[tracysaboe]

. . .but I also think that the LSF would benefit more by the $13 dollars a month or whatever that premium is, than the benefit payout. . . .

That's all I'm trying to say.

So how would Mike's own life be hit financailly if he dies? He doesn't need it. He's dead. (I mean, unless he's got a lot of lenders that he owes money to, but I seriously doubt that being the type of person Mike is.) It's others who depend on your life for your resourcees and income the reason that you buy death insurence (that's what it used to be called, and it's a far more honest term.) for.  In the event that you die, the people in your life that depend on you are going to be taken care of.

Anyway,

Tracy

[davemincin]

Tracy....Why do I think you work for Primamerica!

Mike, think it super that you have made LSF a benificary!

[tracysaboe]

Maybe because I mentioned it a few posts back? 

Seriously, I'm still technically a producure for them. I keep my license up, just because someday I might want to do it again, and don't feel like needing to restudy all that useless crap they have on the tests.

But anyway,

Tracy

[Michael Fisher]

BTW, my life insurance gift has a few conditions on it that I will only mention here. They're pretty straightforward:

-The money must ONLY be used to further the LSF's current mission ("...to significantly increase the educational opportunities available to children ages 5-18 by acquiring charitable donations and channeling those funds directly to families in New Hampshire for non-public education.").

-All of the money must go to the Endowment Fund.

-The interest from the money, if removed from the Endowment Fund, can only go directly toward scholarships (the Scholarship Fund).

-All of the money remaining must be immediately withdrawn and given to my Father, Mother, or Brother if the LSF applies for and receives any of the following at any time:
-- 501(c)(3) status;
-- any other tax-deductible government status determination; or
-- any source of government funding, grants, or loans.

[KBCraig]

Thanks, Mike. Nice to see you've thought through the permutations.

Kevin

[Michael Fisher]

Thanks, Mike. Nice to see you've thought through the permutations.

Kevin

It's good to be givin' while you're livin' so you're knowin' where it's goin'.

But with planned giving, it's good to set conditions so the money is not used to do the exact opposite of what you intend.