My life insurance is fully paid for and provided by my employer from whom I retired. ESPlanner apparently reccomends that I not have life insurance because it seems to always zero it out in the reports. But I have it and can not cash it in without dying.
How do I use this life insurance cash value and let it follow various life expectancy options?
Thanks,
Ron
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HI, THIS IS LARRY. I REPLY IN CAPS BELOW. BEST.
My life insurance is fully paid for and provided by my employer from whom I retired. ESPlanner apparently reccomends that I not have life insurance because it seems to always zero it out in the reports. But I have it and can not cash it in without dying.
How do I use this life insurance cash value and let it follow various life expectancy options?
SIMPLE - JUST ENTER THE FACE AND TERM VALUES OF YOUR EMPLOYER-PROVIDED POLICY ON THE LIFE INSURANCE SCREEN (IN THE ESTATE FOLDER). THE DIFFERENCE BETWEEN THE FACE AND TERM VALUES IS THE CASH VALUE. THIS DIFFERENCE IS AUTOMATICALLY (YOU HAVE TO DO NOTHING) SENT OVER TO THE REGULAR ASSETS SCREEN (IN THE REGULAR ASSETS AND SAVING FOLDER) AND INCLUDED AS A REGULAR ASSET WHEN THE PROGRAM FORMULATES ITS RECOMMENDATIONS. SO JUST FILL OUT THE INSURANCE SCREEN AND YOU'LL BE ALL SET.
I have put a Face Value in the Insurance area under Estate tab. There is not any cash value as I can not cash it in; except by dying.
The program reccomends that I have zero insurance and it does not credit my account upon my death.
How do I show this income to my estate upon my death?
RGantz1 at aol.com wrote:I have put a Face Value in the Insurance area under Estate tab. There is not any cash value as I can not cash it in; except by dying.
The program reccomends that I have zero insurance and it does not credit my account upon my death.
How do I show this income to my estate upon my death?
Wouldn't the face and term values be the same in that case (your cash value is 0)?
However, I think what you're asking is for ESPlanner to show the receipt of your existing life insurance into the plan that ESPlanner calculates. As an aside, ESPlanner assumes that you'll cash in your whole life policy immediately since whole life is such a big looser and buy term insurnance if you need to.
The short answer is that won't happen. ESPlanner assumes that you're going to do what it says and, given your assets, you don't need life insurance.
The somewhat longer answer is that you can abuse the housing and contingent housing interface. You need to say that you have a paid for vacation home whose value is decreasing by -3% (assuming your life insurance policiy is not inflation indexed). Then enable contingent planning and tell ESPlanner that you will sell the vacation home upon the event of your death. That will look like a receipt of your life insurance policy face value.
Best,
Dick Munroe
Yes, the term and face values are the same and the cash value is zero.
Your suggestion to use a depreciating vacation home as a surrogate for the life insurance value makes sense.
However, I am not able to determine how to have it sell upon my death. I can specify a year to sell, but can't find where to specify sell upon death.
I have not done any thing with contingent plans so that might be part of my problem.
Any guidance would be appreciated.
Thanks,
Ron
RGantz1 at aol.com wrote:Yes, the term and face values are the same and the cash value is zero.
Your suggestion to use a depreciating vacation home as a surrogate for the life insurance value makes sense.
However, I am not able to determine how to have it sell upon my death. I can specify a year to sell, but can't find where to specify sell upon death.
I have not done any thing with contingent plans so that might be part of my problem.
Any guidance would be appreciated.
Thanks,
Ron
You can specify a change of home in the last year with a rent of zero or just leave it as part of your overall net worth