extended warranty or self-insure

[lcv800]

I'll let you know if it's a good deal or not tomorrow. Major electrical malfunction yesterday. One A/C out, dishwasher and fireplace fried, as well as probably induction cooktop. $100 deductible Platinum with ExtraRide ($4,000 for 7 years). May get a good chunk of that back by tomorrow on my unit that is 2 months out of factory warranty,
Rusty

[pgandw]

Originally Posted by babock

Of course you invest the difference. That's the whole point.

Just think of the people who bought whole life in 2009. They missed out on a period of investing, we have never seen before.

And, by the time you are 70, there is really no point in having life insurance.

I expect barring some sudden change, to live in to my 90s. My doctor expects the same. My wife, if her cancer remains in remission, also is expected to make it into her 90s. Not that unusual in the US any more. Insurance past 70 does matter.

My retirement is a defined benefit, which sucks for my wife if I pass early. Life insurance would be the normal cure but because of a congenital heart condition discovered in my 40s, I cannot buy any new insurance policies.

My wife stayed home, home schooling our children. Not a great economic choice for the family, but a great choice for our children and her. Houses - I managed to lose money on houses 2-4 (we're living in #5 now). Not everybody makes money from houses. Prop 87 (IIRC) has allowed you to stay in the same house for a long time. Very good economically for you.

My point is that most of us get thrown some unexpected curve balls by life, despite our best plans. Whole life insurance offers some protection that term life doesn't for family survivors when life goes wrong.

Fred W

[babock]

None of what you said changes anything about doing whole life or not. It's a poor financial strategy....period.

Originally Posted by pgandw

I expect barring some sudden change, to live in to my 90s. My doctor expects the same. My wife, if her cancer remains in remission, also is expected to make it into her 90s. Not that unusual in the US any more. Insurance past 70 does matter.

My retirement is a defined benefit, which sucks for my wife if I pass early. Life insurance would be the normal cure but because of a congenital heart condition discovered in my 40s, I cannot buy any new insurance policies.

My wife stayed home, home schooling our children. Not a great economic choice for the family, but a great choice for our children and her. Houses - I managed to lose money on houses 2-4 (we're living in #5 now). Not everybody makes money from houses. Prop 87 (IIRC) has allowed you to stay in the same house for a long time. Very good economically for you.

My point is that most of us get thrown some unexpected curve balls by life, despite our best plans. Whole life insurance offers some protection that term life doesn't for family survivors when life goes wrong.

Fred W

[sunnman]

I am a big believer in shopping for your dealer before shopping for your trailer. We bought from a small family dealer close by in Western Pa. We got 8 year Xtraride policy with $100 deductible at cost from our dealer. Paid a little over $1300. We had to replace an axel while on the road, tow alone was $1700 (warranty covered $1000 and auto insurance the rest), axel and labor just under a grand. All told cost me $100 deductible and $100 shipping.

[pgandw]

Originally Posted by babock

None of what you said changes anything about doing whole life or not. It's a poor financial strategy....period.

Your assertion of an opinion does it not make it fact.

[lcv800]

Anything that provides some peace of mind and financial security is a good idea. Are some strategies better than others; perhaps. None of us has a crystal ball, so we do the best we can with what we have.
Rusty

[wanderingbob]

I drove my Mercedes chassis 122,000 miles with no problem that factory warranty did not cover . Got struck by lightning or I might still be driving it !

[babock]

Actually it does. If you had taken the difference in premium between a term policy and a whole life back when you started it, and put it in an index fund, you would likely have 3 to 4 times the cash value now. Those are facts you can look up.

Originally Posted by pgandw

Your assertion of an opinion does it not make it fact.

[NMWildcat]

Originally Posted by babock

Actually it does. If you had taken the difference in premium between a term policy and a whole life back when you started it, and put it in an index fund, you would likely have 3 to 4 times the cash value now. Those are facts you can look up.

Yep, hindsight is 20/20

[babock]

Fortunately for me, when I was 25, I had someone who taught me the difference between the two methods....no 20 20 needed.

Originally Posted by NMWildcat

Yep, hindsight is 20/20

[NMWildcat]

Yep, but you still didn't know for sure how it would turn out, hence the use of the word 'likely' in your comment. Glad it worked out for you, but it doesn't mean folks who took a different path to their respective goals are wrong.

Originally Posted by babock

Fortunately for me, when I was 25, I had someone who taught me the difference between the two methods....no 20 20 needed.

[babock]

True...if the market had only gone up 2 or 3% per year.

Originally Posted by NMWildcat

Yep, but you still didn't know for sure how it would turn out, hence the use of the word 'likely' in your comment. Glad it worked out for you, but it doesn't mean folks who took a different path to their respective goals are wrong.