Standby fees: $180/year (waived if you overfund your life insurance policy by $20,000, which you should do anyway) = $0/month
Just curious what the logic of overfunding by $20k is. I’ve been getting quotes from agents that are a bit high (I’m assuming because I’m 40), plus I’m in Canada, so there’s a historical 1.3x price premium due to currency conversion. Bumping my coverage up $20k adds about $720/year. I have enough in the bank that it’s unlikely I couldn’t handle future Alcor’s price increases. Unless there’s another factor I’m not considering, it seems like it would make more sense to just eat the $180.
Good question! The logic there was that I think it’s usually the right call to take out a death benefit that covers the expected inflation-adjusted cost of preservation when you’re 85, not the current dollar amount needed to cover preservation. Especially since you’re already over 35, covering those cost increases by taking out additional life insurance in the future is likely not the most economical choice.
I discuss this whole question more here, but let me know if you still feel unresolved.
Just curious what the logic of overfunding by $20k is. I’ve been getting quotes from agents that are a bit high (I’m assuming because I’m 40), plus I’m in Canada, so there’s a historical 1.3x price premium due to currency conversion. Bumping my coverage up $20k adds about $720/year. I have enough in the bank that it’s unlikely I couldn’t handle future Alcor’s price increases. Unless there’s another factor I’m not considering, it seems like it would make more sense to just eat the $180.
Good question! The logic there was that I think it’s usually the right call to take out a death benefit that covers the expected inflation-adjusted cost of preservation when you’re 85, not the current dollar amount needed to cover preservation. Especially since you’re already over 35, covering those cost increases by taking out additional life insurance in the future is likely not the most economical choice.
I discuss this whole question more here, but let me know if you still feel unresolved.