Watch: R' Dudi Farkash of RFK Financial explains the importance of life insurance in an address to the Kolel L’horaah Ma’asis in Crown Heights. Video
Watch: R' Dudi Farkash of RFK Financial explains the importance of life insurance in an address to the Kolel L’horaah Ma’asis in Crown Heights. Video
From an address at the Kolel L’horaah Ma’asis in Crown Heights
The Kolel, which is located in the Beis Gimpel Shul, 309 New York Avenue in Crown Heights, is led by Rosh Kolel Rabbi Sholom Ber Shuchat, Sgan Rosh Kolel Rabbi Shraga Homnick and was founded by Rabbi Shloime Greenwald.
VIDEO
I have not had a chance to listen yet, so this question may have been answered : I am older (71) and regret very much not purchasing life insurance when I was younger and healthier. Now I have several fairly serious health conditions. Does this mean that I could never be approved and/or that I will have to pay super high premiums? Thank you.
You don’t need life insurance at 71 years old, and it would be very expensive at that age regardless.
This sounds like most of us think when we’re younger. It’s very wrong, hence the question/concern from this 71 year old.
There is at least some need for insurance as long as you have a dependent and not enough money to not work another day in your life.
This is aside from the feeling many “older” people have about wanting to leave more for their children.
Your only options are likely guaranteed issue policies. Very limited coverage though.
Life insurance is meant for people that have young children that still need to be supported and get weddings paid off .
Each kid u base about 20k year until marriageable age
If everyone is married and out of the house there is no really any reason .
For life insurance .
the primary function of Life insurance is to pay out all outstanding debt (mortgages, investment loans, business debt etc) in the event of death (so as not to pass on the debt to your estate). It is not just young families who need it…there are many middle aged people and people who are close to retirement age who still have outstanding mortgages and other loans. That’s in addition to expenses for funerals and marrying off children
Many frum people die with little to no assets, making it worthless at that point.
many frum people take out mortgages and business loans. If a person can’t afford to pay for the life insurance premiums and/or is unwilling to take it out, then they should never take out a mortgage.
In regard to “many frum people” having no assets…that’s just a stereotype and generalization. it depends where you live. In Eretz Yisroel there are many frum people who live below the poverty line. In big cities such as NYC, many frum people rent and live in apartments but there are also many wealthy frum people (there is usually a big disparity between the wealthy and the poor in such cities). However, the average frum person living in the suburbs of America, Canada or Australia has a mortgage on their home and other debts to pay off.
But certainly a very nice Yerusha & I think it doesn’t get taxed. That’s why the size of the premiums matter …
Although it’s true that it’s most important when you have dependent children, to say that when everyone is married there is no reason for life insurance is very short sighted. How is a surviving spouse supposed to live if a coupe doesn’t have enough money to never work another day? And if they do have that type of money there may very well be estate tax reasons for life insurance. Also most people who are in that financial position with enough money to completely retire usually strongly value leaving at least part of it to their kids.
I am so pleased that this lecture is on COLive, and in that way it may spread to all bochurim and young men with families. I can’t applaud this enough.
You ONLY need life insurance if you have dependents. If your children are grown and earn their living there is no need to have them on life insurance, especially if you can’t easily afford the premiums. Some life insurance companies get people to sign on for life insurance as an investment. Life insurance is not advisable for investment purposes alone as the return on investment is typically low and the fees are high.
Does a surviving spouse not need money to live? Ask anyone who unfortunately lost their husband without enough money to retire if they had no need for life insurance to live off after all the kids are financially independent. The fact that many who need it don’t get it because it’s too expensive is only more reason to consider permanent life insurance as a savings vehicle. Whole life insurance is not an investment. It’s your best way to get permanent life insurance and it’s your best tax free savings account. Don’t use it as a vehicle for growth, use it… Read more »
As a financial advisor, I can answer anyone’s questions that they have on life insurance. Message me at 929 331 7358