Life Insurance

MuffinMom14

Has anyone purchased life insurance on your kid?

My mom is watching APurp today, so she was all worked up about 900 things she had to tell me before I got out the door this morning.  One was that she purchased a life insurance policy for APurp, and I should do the same. She found one that was like $7 for $20,000 of coverage, and premiums never go up. I literally know NOTHING about life insurance, and I NEED to speak with our actual agent first before just picking some rando off of the internet, but I was curious.

pnwlover12

We have it through H's work. I can't remember what the policy is for though.

MrMrsandBaby

My parents bought a policy for Allison but we don't have one for Brooke yet.  I *think* we have one available at work but I missed the open enrollment window so it will have to wait until next year.

Coles404

I have Child Life through work. It's $1 a month for $10,000. I've thought about getting a Gerber plan for both girls but haven't yet.

windwithfingers

We  I do life insurance through work. I think it's like $10k and I haven't updated it since DS was born. Should do that.

Edited because I always say "we" but in this case, I actually mean "me."

MrsSarahRenee

DH and I have life insurance to cover our debt on house and student loans. We haven't set LO up with one yet. Why do grandparents get it for LO? Just curious.

bumpuser10309732

Wait so your mom made you and f the owner right?? Otherwise uhm what? Also no we don't but I'm going to. Just because I want to guarantee her insurability later down the road (i had a cousin with cancer so I think about this shit) anyway I recommend it just for that reason

toomanycats1

The boys are covered through DH's work, but if they weren't I don't think we would have a policy on them. I mean, it's more important that we have extra life insurance for DH since he's the main breadwinner and we'd be screwed if something happened to him.

How large of a policy do people usually take out on their kids? I think ours are covered for $50k or something. :-/

mrsc928

DS is covered through my work. I highly recommend getting your LO covered. I was able to get coverage as an adult because my parents had a policy for me. I am a childhood cancer survivor.

MuffinMom14

pnwlover12 said:

We have it through H's work. I can't remember what the policy is for though.

Hmm. We might have that available to us, too. We both have policies on OURSELVES that way, but we should check to see if we have it for her as well.

And we also are thinking about a 529. WV is actually one of the good ones, so we can stick it in state. We don't want her to be stuck only going to school here, though, because I'm sure she will be heavily doused with VT pride.

MuffinMom14

MrsBabe614 said:

Wait so your mom made you and f the owner right?? Otherwise uhm what? Also no we don't but I'm going to. Just because I want to guarantee her insurability later down the road (i had a cousin with cancer so I think about this shit) anyway I recommend it just for that reason

I actually have no idea and I don't give a shit. I don't even deal with logistics with her. She also made a bank account for A and I'm not on it, but again, I don't care, because it's her money, and she'll turn it over to A when she's 18. Or not. Whatever.

MuffinMom14

toomanycats1 said:

The boys are covered through DH's work, but if they weren't I don't think we would have a policy on them. I mean, it's more important that we have extra life insurance for DH since he's the main breadwinner and we'd be screwed if something happened to him.

How large of a policy do people usually take out on their kids? I think ours are covered for $50k or something. :-/

I honestly don't know. It was my assumption that it's to cover funeral expenses most of the time. Since OUR policies can cover our own funeral expenses plus anything else, whatever our kids want to use it for, but for kids, I'd think it's just for their funeral, since I am not expecting to be provided for by my kid, but vice versa.

Did any of that make sense? I mean, you could make it for however much you want. You could use it towards any medical bills, too, if you really wanted to, but I am fairly certain you do not have to pay medical bills for another person if that person dies and had no money in their estate. Life insurance is YOURS to do with what you want. At least this is what we did when it came to my dad. Maybe I had a shady lawyer.

bumpuser10309732

SPurp13 said:

toomanycats1 said:

The boys are covered through DH's work, but if they weren't I don't think we would have a policy on them. I mean, it's more important that we have extra life insurance for DH since he's the main breadwinner and we'd be screwed if something happened to him.

How large of a policy do people usually take out on their kids? I think ours are covered for $50k or something. :-/

I honestly don't know. It was my assumption that it's to cover funeral expenses most of the time. Since OUR policies can cover our own funeral expenses plus anything else, whatever our kids want to use it for, but for kids, I'd think it's just for their funeral, since I am not expecting to be provided for by my kid, but vice versa.

Did any of that make sense? I mean, you could make it for however much you want. You could use it towards any medical bills, too, if you really wanted to, but I am fairly certain you do not have to pay medical bills for another person if that person dies and had no money in their estate. Life insurance is YOURS to do with what you want. At least this is what we did when it came to my dad. Maybe I had a shady lawyer.

I would do funeral plus expenses like I doubt you'll want to work for a while if anything were to ever happen.

angeltennis3

SPurp13 said:

pnwlover12 said:

We have it through H's work. I can't remember what the policy is for though.

Hmm. We might have that available to us, too. We both have policies on OURSELVES that way, but we should check to see if we have it for her as well.

And we also are thinking about a 529. WV is actually one of the good ones, so we can stick it in state. We don't want her to be stuck only going to school here, though, because I'm sure she will be heavily doused with VT pride.

For your 529, are you sure it would only pay for in state school? DD has 3 529s (1 in Ohio and 2 in Indiana). You only get the state tax deduction in the state the 529 plan is in, but dd can use the money at any college in the country.

MuffinMom14

angeltennis3 said:

pnwlover12 said:

We have it through H's work. I can't remember what the policy is for though.

Hmm. We might have that available to us, too. We both have policies on OURSELVES that way, but we should check to see if we have it for her as well.

And we also are thinking about a 529. WV is actually one of the good ones, so we can stick it in state. We don't want her to be stuck only going to school here, though, because I'm sure she will be heavily doused with VT pride.

For your 529, are you sure it would only pay for in state school? DD has 3 529s (1 in Ohio and 2 in Indiana). You only get the state tax deduction in the state the 529 plan is in, but dd can use the money at any college in the country.

Yes, WV is fine to use anywhere. That was our one stipulation. 

windwithfingers

@SPurp13‌ we're doing a 529 out of Utah. Illinois is not a good 529 state.

MuffinMom14

windwithfingers said:

@SPurp13‌ we're doing a 529 out of Utah. Illinois is not a good 529 state.

My husband looked into them, and supposedly, according to him, WV is ok, so we'll stick it here. It all seems weird to me, and I'm not even going to PRETEND to understand it.

golfingdarwinfish

DH worked with our financial consultant on that, but I think yes, we do have it on him.  I'm not sure where they did the 529 though.

irrekb

What @MrsBabe614‌ said. DH sells life insurance for a living so we're all pretty heavily covered ($1mil-500k). He tells his clients to get enough coverage for funeral, medical bills, and enough money to cover your expenses because chances are you won't return to work right away. He advises ppl to get a private policy on top of the free/super cheap ones you typically get at work that usually only cover $10k.

turtles7

I have something for myself, DH and LO through work. 

ETA: Sorry! I was lurking and didn't realize I wasn't on my BMB. 

Kelsbells6

I better get working on this because of now we do not have life insurance for him. We have started talking about but need to act on it.

chicitygirl7

We have it through work. One thing worth noting is that if you have policies through your employer, they may not be portable. It varies, but a lot can't be paid on and held if you're not an employee any longer. Meaning if you lose your job, you'd be without coverage. So it's worth it to have policies independent of your work provided basic or supplemental coverage.

bumpuser10309732

irrekb said:

What @MrsBabe614‌ said. DH sells life insurance for a living so we're all pretty heavily covered ($1mil-500k). He tells his clients to get enough coverage for funeral, medical bills, and enough money to cover your expenses because chances are you won't return to work right away. He advises ppl to get a private policy on top of the free/super cheap ones you typically get at work that usually only cover $10k.

Yes me too. I've been in insurance for...too fucking long! But yeah get other policies ladies because work insurance is typically not yours to keep if you leave! Most common jobs where you keep the policy is teachers and government jobs.

golfingdarwinfish

I thought we were only talking about LO insurance...

We have about $1.5 million coverage for DH, and I got rejected because of my history of an eating disorder.  Which is lovely.  DH's is in a few different plans, including ones that we can borrow from once they hit a certain level.  It's supposedly an investment?  I have no idea, it's definitely not my area of expertise.

He also has some special disability insurance that goes above and beyond the standard STD.  Basically if he can't do his job, never mind any job, he gets paid a % of what he currently makes, which is different than standard STD and LTD.

windwithfingers

I have no idea how the 529 works. I signed the paperwork and did what my grandma told me to do. All us grandkids have them so I just defer to her wisdom.

bumpuser10309732

golfingdarwinfish said:

I thought we were only talking about LO insurance...

We have about $1.5 million coverage for DH, and I got rejected because of my history of an eating disorder.  Which is lovely.  DH's is in a few different plans, including ones that we can borrow from once they hit a certain level.  It's supposedly an investment?  I have no idea, it's definitely not my area of expertise.

He also has some special disability insurance that goes above and beyond the standard STD.  Basically if he can't do his job, never mind any job, he gets paid a % of what he currently makes, which is different than standard STD and LTD.

For sure discussing LO just wanted to 2nd what a couple other people said also crazy on you I didn't know that was something you could be denied for if they see its a managed issue. My FIL had a life policy on DH that we were able to cash in and use as a down payment on our home where otherwise we wouldn't have been able to do. So something else to think about!

ajh1230

windwithfingers said:

I have no idea how the 529 works. I signed the paperwork and did what my grandma told me to do. All us grandkids have them so I just defer to her wisdom.

Same I'm so thankful my grandma works in banking and helped get LO set up with a high return investment account.

MuffinMom14

MrsBabe614 said:

golfingdarwinfish said:

I thought we were only talking about LO insurance...

We have about $1.5 million coverage for DH, and I got rejected because of my history of an eating disorder.  Which is lovely.  DH's is in a few different plans, including ones that we can borrow from once they hit a certain level.  It's supposedly an investment?  I have no idea, it's definitely not my area of expertise.

He also has some special disability insurance that goes above and beyond the standard STD.  Basically if he can't do his job, never mind any job, he gets paid a % of what he currently makes, which is different than standard STD and LTD.

For sure discussing LO just wanted to 2nd what a couple other people said also crazy on you I didn't know that was something you could be denied for if they see its a managed issue. My FIL had a life policy on DH that we were able to cash in and use as a down payment on our home where otherwise we wouldn't have been able to do. So something else to think about!

Now I'm wondering if they will freak about a history of depression. I've seen shrinks and am on medication for it. 

golfingdarwinfish

SPurp13 said:

MrsBabe614 said:

golfingdarwinfish said:

I thought we were only talking about LO insurance...

We have about $1.5 million coverage for DH, and I got rejected because of my history of an eating disorder.  Which is lovely.  DH's is in a few different plans, including ones that we can borrow from once they hit a certain level.  It's supposedly an investment?  I have no idea, it's definitely not my area of expertise.

He also has some special disability insurance that goes above and beyond the standard STD.  Basically if he can't do his job, never mind any job, he gets paid a % of what he currently makes, which is different than standard STD and LTD.

For sure discussing LO just wanted to 2nd what a couple other people said also crazy on you I didn't know that was something you could be denied for if they see its a managed issue. My FIL had a life policy on DH that we were able to cash in and use as a down payment on our home where otherwise we wouldn't have been able to do. So something else to think about!

Now I'm wondering if they will freak about a history of depression. I've seen shrinks and am on medication for it. 

@SPurp13

That was the other thing they mentioned in my rejection. Depression/anxiety and the eating disorder.  The fact that I had them for more than half my life was part of it; apparently length and duration of disease is an issue.

But, if I had only gone for $250k or something it likely would have gotten approved, part of it was the size of the policy.  When I contested it they did mention every doctor that they communicated with in some way, and I was shocked.

bumpuser10309732

SPurp13 said:

MrsBabe614 said:

golfingdarwinfish said:

I thought we were only talking about LO insurance...

We have about $1.5 million coverage for DH, and I got rejected because of my history of an eating disorder.  Which is lovely.  DH's is in a few different plans, including ones that we can borrow from once they hit a certain level.  It's supposedly an investment?  I have no idea, it's definitely not my area of expertise.

He also has some special disability insurance that goes above and beyond the standard STD.  Basically if he can't do his job, never mind any job, he gets paid a % of what he currently makes, which is different than standard STD and LTD.

For sure discussing LO just wanted to 2nd what a couple other people said also crazy on you I didn't know that was something you could be denied for if they see its a managed issue. My FIL had a life policy on DH that we were able to cash in and use as a down payment on our home where otherwise we wouldn't have been able to do. So something else to think about!

Now I'm wondering if they will freak about a history of depression. I've seen shrinks and am on medication for it. 

It honestly varies from company to company

BBBrady

We have a policy on our kids because it's only $8 a month for $50k and then it rolls over for them to take out some money or continue to get life insurance. It sounded like a good deal because my policy is $20 a month and my husbands is well over $100 so $8 sounded like a bargain. After losing a few young friends recently, I am very glad we have it even though the bill hurts me when I look at it.

slsl509

I didn't think it was recommended to get life insurance on kids since they aren't bringing in an income. Funerals are crazy expensive though, an even bigger racket than weddings.  I'll have to ask my FA about that.

I have 4x my salary at work and an additional 150K independent policy that is $10/month. I got it with a long history of depression but luckily it was before The Cancer. Not sure I would get a policy for that cheap on my own now even though I've been in remission for almost 5 years.