Author Topic: Life Insurance  (Read 3300 times)

seulbee77

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Life Insurance
« on: May 05, 2014, 07:32:29 AM »
Do most of you have life insurance?  If so, which one and why did you choose the one you have? 
We are thinking about getting a term life insurance...
Can you recommend any products out there or anything within the policy that I should be looking for?
How much is a decent amount to pay for... say $250K, $500K, $1MM?

I know I know, I suppose I can talk to an insurance agent, but I somehow don't trust them.  They all just want to sell their own company policies...

ex:  Some pay you partial pmt when you are diabled later in life
« Last Edit: May 05, 2014, 08:11:48 AM by seulbee77 »

nereo

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Re: Life Insurance
« Reply #1 on: May 05, 2014, 07:41:53 AM »
Do most of you have life insurance?  If so, which one and why did you choose the one you have? 
We are thinking about getting a term life insurance...
Can you recommend any products out there or anything within the policy that I should be looking for?

ex:  Some pay you partial pmt when you are diabled later in life
I have term life insurance.  I wound up getting it through the same company that I have my auto insurance through (state farm) because they offered the best rate.
IMO, you should only carry enough life insurance to pay off your debts and give your dependents enough money to survive. If you have young children it will be a lot more than if you have just a spouse that also earns money. 
I have a $500k 10 year term policy (ironically it was cheaper than a $250 policy) for ~$21/month.  If I died today it would pay off the house, both our student loans and then leave about $300k 'leftover' (plus all my personal investments).  It's far more than I need but as I said was the cheapest option. I do not plan on renewing it when the term is over because I plan on having the house nearly paid off and quite a lot in savings.


brewer12345

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Re: Life Insurance
« Reply #2 on: May 05, 2014, 09:03:33 AM »
First, why do you need life insurance?  Got kids?  Non-working spouse?  Some other dependents?  If you do not need it, do not buy it.

If you do need it, keep it simple.  The world is full of confusing insurance products.  20 year term with a conversion option should do just fine unless you have exotic needs (unlikely).

Detailed further write-up here: http://lifeinvestmentseverything.blogspot.com/2012/06/how-to-buy-life-insurance.html

rubybeth

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Re: Life Insurance
« Reply #3 on: May 05, 2014, 09:28:07 AM »
We got it through our regular insurance agent (we get our car and renters' insurance through him, as well). I think the amount depends on your life situation (kids, non-working spouse, mortgage, other debts, etc.) and your spending for the necessities. Also, I think *some* life insurance is a good idea for married folks, because who knows how you will react if your spouse dies? Will you need time off work to sort everything out with a funeral, will, probate, etc.? You might become depressed and not want to go to work, and not have enough paid time off to cover this bereavement period.

We each got $300K of coverage, and we have no debt, no mortgage, and no children. But I know I'd be devastated if my husband died, and that $300k would give me some breathing room from having to work, and would also be income replacement. I could definitely live on my income, but it would be much more difficult to retire early as we have planned--the $300k would make up for this. The same is true for him; I out-earn him right now, but he's in graduate school, and I can't imagine him handling work and grad school without me around to take care of everything else (cleaning, groceries/cooking, etc.). The insurance would give him a lot of options.

seulbee77

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Re: Life Insurance
« Reply #4 on: May 05, 2014, 09:42:16 AM »
Thank you for the comments.  We have two kids, 5 and 6.  Both of us work.  But if one of us dies all of a sudden or becomes disabled, we would face some financial hardship.  People around us kept telling us that we need to have one bc we have young kids.  Plus his father becamse disabled and was bedridden for about 6 years before passing away and it just got us thinking, I suppose.

So I guess we should each go with a term life insurance to cover the cost of raising two kids, either one of our salary, and to payoff our mortgage (about 13 years left).  Maybe a 20 year tem life insurance would be sufficient.  We are both on the healthy side, but you just never know.  We've seen some young folks have a heart attach all of a sudden, accidents, etc... 

One of our friends have $500K term life for $40/month.  Another friend has a $250K for $15/month.

I don't know.  I assumed most of you guys here would already have some type of life insurance and I asked the question.

brewer12345

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Re: Life Insurance
« Reply #5 on: May 05, 2014, 10:43:15 AM »
Thank you for the comments.  We have two kids, 5 and 6.  Both of us work.  But if one of us dies all of a sudden or becomes disabled, we would face some financial hardship.  People around us kept telling us that we need to have one bc we have young kids.  Plus his father becamse disabled and was bedridden for about 6 years before passing away and it just got us thinking, I suppose.

So I guess we should each go with a term life insurance to cover the cost of raising two kids, either one of our salary, and to payoff our mortgage (about 13 years left).  Maybe a 20 year tem life insurance would be sufficient.  We are both on the healthy side, but you just never know.  We've seen some young folks have a heart attach all of a sudden, accidents, etc... 

One of our friends have $500K term life for $40/month.  Another friend has a $250K for $15/month.

I don't know.  I assumed most of you guys here would already have some type of life insurance and I asked the question.

In similar circumstances to yours, we had $1MM 20 year term on me (primary breadwinner) and $500k 20 year term on DW (the most they would write us on her).  When we became FI we cancelled both policies.

You should also have disability income policies.  If you do not have this through your employer, go buy "own occupation" policies from a large, well-rated mutual insurer.

seulbee77

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Re: Life Insurance
« Reply #6 on: May 16, 2014, 06:26:44 AM »

Thank you, we are looking into term life insurance for 20 years now. =)

Emilyngh

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Re: Life Insurance
« Reply #7 on: May 16, 2014, 06:59:11 AM »
Thank you for the comments.  We have two kids, 5 and 6.  Both of us work.  But if one of us dies all of a sudden or becomes disabled, we would face some financial hardship.  People around us kept telling us that we need to have one bc we have young kids.  Plus his father becamse disabled and was bedridden for about 6 years before passing away and it just got us thinking, I suppose.

So I guess we should each go with a term life insurance to cover the cost of raising two kids, either one of our salary, and to payoff our mortgage (about 13 years left).  Maybe a 20 year tem life insurance would be sufficient.  We are both on the healthy side, but you just never know.  We've seen some young folks have a heart attach all of a sudden, accidents, etc... 

One of our friends have $500K term life for $40/month.  Another friend has a $250K for $15/month.

I don't know.  I assumed most of you guys here would already have some type of life insurance and I asked the question.

I am the breadwinner and dh SAH with our young daughter.    We have a 25 yr term policy for $400k on me that costs $33 a mo.   If I were to pass away, this would enable DH to pay of the house and be FI (when combined with our other investments).   My work has disability.

We don't have coverage on dh b/c the reality is him passing would not provide me with a financial hardship.   Plus, he's older and it would be much more expensive.

My big tip is not to use some crazy formula or be guilt-ed into getting too much.   Do the math and only get what would be needed to replace required income.

We do not have an