March 27, 2023
Should We Cancel Our Life Insurance Policy? | YMYW Podcast | YMYW Podcast

Dear Andi, Joe & Al, YO! WHAT UP!! First you help us during episode #291 with an inherited IRA but BUTCHERED the name of our town. “When I step on the ice, I slip.” We live in East Islip, New York. I still drive a black honda civic and my better half still drives a subaru outback. We enjoy good beers from our local breweries, and this week we’re going with Southern Tier Pumpkin Beer mixed with a stout and you get a pumpkin stout!! If not a good old fashion will do. Secondly and to the point. We need you to settle a “conversation” we’re having. Should we cancel our life insurance? I’m 55 & retired. I have a pension of $80,000/ year which is fully transferable to my wife upon my passing. We have no debt, no mortgage, or car payments etc. Two of our three kids are done with college, while the third is a senior and we have all her remaining college funding sitting in cash.
My wife is 53, still working and plans to do so until age 62. She makes $30,000/year and will have a small pension. We plan on collecting S.S. at age 62 and use these monies to feed our travel addiction (Hawaii & Italy). Furthermore we have about $800,000 in various 403-B s, Roth IRA s, Inherited IRA, brokerage accounts & I-bonds. I have a $750,000 term policy for $1,400/ year which is about to go up as I’m turning 56 soon. My wife has a term plan for $250,000 at $400/year. We can hold these until age 80. Should we:
A) cancel all life insurance policies
B) cancel mine and continue paying for my wife’s.
C) continue paying both
p.s. During episode #291, Big Al came down on my wife’s side and that’s the way we went. I never heard the end of it. Peace, Love & Jerry Garcia. – Patrick & Jackie

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