Random: Life Insurance

Into+the+Kitty

Who do you have covered with a life insurance policy?

mrshudson618

DH and I both got life insurance when we bought our house. Our insurance company has a rider that you can add that covers any/all children. It's a fairly small amount, but we mainly got it because one of the benefits is that when they turn 18 they can automatically turn it into an adult policy of their own, even if they have a pre existing condition that could otherwise disqualify them.

Into+the+Kitty

Bonus question: if you and your spouse have it, are you covered equally (if not what's the ratio)? Do you SAH or WOH?

Into+the+Kitty

Into+the+Kitty said:

Bonus question: if you and your spouse have it, are you covered equally (if not what's the ratio)? Do you SAH or WOH?

We're covered 2:1 with J having more, and I SAH.

mrshudson618

We are covered equally, even though I SAH. At first I thought that was unnecessary, since I don't bring in an income, but after funeral expenses, DH would pay off our house and use the mortgage money to pay for child care.

flummadiddle85

DH has some through work, plus I would get something from his retirement too. We are looking into a policy for me to help pay for child care or whatnot if something were to happen to me. I WAH PT.

abby8279

DH to me is 5:1.  I SAH.  And very little for our DDs but they are covered too.

CLLDLL

I work in the industry. We lost my dad at age 55 when my little bro was 16. Needless to say we are well covered.

I have a policy through work that is around 3x what DH has through his work. (I'm the breadwinner so to speak.) These policies would cover college for the boys, allow the grieving widow(er) to take some time off work and cover the partial living expenses until retirement for the survivor. We have smaller policies outside of work (in case one of us lost a job) that would pay off our house and cover burials. We also have small burial policies on each boy. I do have it on my to do list to shop for whole life policies for them since its nice to give them the option to purchase more insurance without goijng through underwritting when they are adults.

bumpuser5078523

I keep pestering H about getting it. He goes hiking all day alone, and it's a good thing to have when he accidentally falls in a ditch in the middle of nowhere because he keeps annoying his knocked up wife.

kjsmith9

After we moved last summer, we finally got all of this taken care of.  I have a policy equal to my salary at work, and then we each have a separate policy here.  I have much more student loan debt than he does, and we live in a "community property" state, so he would probably be responsible for at least some of that (at least the private loans).  I also wanted to make sure there would be enough there for funeral costs, either of us to take bereavement leave from work, paying off other random things at the time, etc.  We also have rider policy for DD that works the same as @mrshudson618 described above.

We haven't bought a house yet (planning to by this time next year), so I think we'll re-evaluate our coverage amounts at that time.

SuperTinkerham

We both maxed out what our employers offer for ourselves and eachother. Enough to pay off the house and any debts. We haven't added Milo yet, but will at open enrollment. I think ILs are also getting a small policy for baby.

kezias

We all have policies. My mom sells it so I am probably over insured. She sells a policy when the baby is born that has an oppertunity to add value at lifetime events like graduation, 21, getting married, having a child and something else (5 times you add value). This insures that if you develope a disease that makes you uninsurable you still have life insurance policy. My spouse and I have policies that are being used as an investment, universal life I think is what they are called. Life insurance benefits are tax free, so it is a tax free way to pass money to children.

RockiesNugget

DH has enough to cover funeral through work and I have a little more through work that is part of our benefits (we don't pay into). We dropped our extra coverage through work this year due to when reading the fine print if we were to leave our jobs that we wouldn't be able to keep our full coverage amount. We picked up outside coverage in equal amounts for us. We've covered ourselves enough to give the spouse a few months off, payoff any debt (mortgage, student loans) and to cover childcare expenses. We have divided our policy into two or three term policies since as we age our needs would be less.