Talk to me about life insurance (kinda NTTGPR)

bethe24 · May 2010

Do you and your H have additional life insurance policies other than what is offered from work?

From work, I have 50k, H has 30k. Since we plan on having children in the near future we just recently met with an insurance salesman (blah), and now I have to decide what to do. Do you have term or whole life, or a combination of the two? And do you have enough coverage to get by or enough coverage to live comfortably in case of a death?

rebelina1 · May 2010

We just have what is offered through work but we get a really good deal through them.

We both get (we work for the same compnay) $100,000 policies free plus we pay an additonal amount (it is only $10 out of each paycheck) for additional coverage at 5 x our annual salary.

Should either of us die we would be covered to pay off the house and the rest of our bills and have extra money to set aside for DD.

Even though I hate to think about this, we also have a policy on DD for $20,000 through work to cover funeral expenses. Wow, even writing that gives me the shivers.

O2BaMom · May 2010

bethe24:

Do you and your H have additional life insurance policies other than what is offered from work?

From work, I have 50k, H has 30k. Since we plan on having children in the near future we just recently met with an insurance salesman (blah), and now I have to decide what to do. Do you have term or whole life, or a combination of the two? And do you have enough coverage to get by or enough coverage to live comfortably in case of a death?

I have a life insurance policy and we are looking into one for DH. I mentioned that to my boss, who is a very knowledgeable man, he told us whole life is a big waste (but a big money maker for the insurance companies). I can?t remember the exact reason but I figure my boss has no reason to lie to me so I believe it. Hope that helps, and GL!

youngin12 · May 2010

I don't know much about life insurance, in fact, I recently started researching this myself. From my understanding, term life insurance is what you need and you want a policy that is 8-10 times the amount of your pay. So if you make $50,000 a year, then you want a $500,000 policy.

Term life insurance is very cheap compared to whole life insurance. When I got a quote for DH who is 26, 200 pounds and considered very healthy, his monthly quote was only $24.00.

kelann2010 · May 2010

Neither DH and I get life insurance through work because it isn't offered. So instead we each got our own policy. Since he is the primary bread winner he went with a combined plan and i just went with a universal plan because it was so cheap to start out with at my age (24). We both have coverage that would let us live comfortably at the moment thinking of our future as well if we are lucky enough to have children, we can always increase our coverage during that time they are living at home to cover their expenses etc. So i think it was a great time to start our life ins due to where we are at in our lives right now.

MySweetBaboo · May 2010

I'm not sure of the type of policy we have, but we got additional life insurance a week after I had dd. He has $50k through work, I have $10k, for the additional, his is $500,000 and mine is $300,000.

We wanted to have enough to pay off the mortgage, start a trust fund for dd and for us to have a lot of money left over to live comfortably and not have to struggle. If God forbid we both went at the same time, we wanted to have enough to do all that and for my sister to be able to care for her for the rest of her life.

carrielb12 · May 2010

I sell life insurance at State Farm. I currently have 250k and me and DH. For us, that's enough to pay off our mortgage, student loans, and other debt. It also gives us mourning time. You are typically suppose to put about 5 years or your annual income in life insurance on top of your debt. We didn't do that because it was too expensive. DH and I both have 30 year term return of premium policies. What is nice about that is after the 30 years if we are both alive, we get everything we put into back. Which then, I'll put into a Universal life policy. Life insurance is the smartest thing you can do for a family and marriage.

I think it's great you are thinking about it. So many times I have seen parents and spouses coming in to see if they s/o had life insurance. It's probably one of the hardest things to say when they don't. Good luck

bethe24 · May 2010

carrielb12:
I sell life insurance at State Farm. I currently have 250k and me and DH. For us, that's enough to pay off our mortgage, student loans, and other debt. It also gives us mourning time. You are typically suppose to put about 5 years or your annual income in life insurance on top of your debt. We didn't do that because it was too expensive. DH and I both have 30 year term return of premium policies. What is nice about that is after the 30 years if we are both alive, we get everything we put into back. Which then, I'll put into a Universal life policy. Life insurance is the smartest thing you can do for a family and marriage.

I think it's great you are thinking about it. So many times I have seen parents and spouses coming in to see if they s/o had life insurance. It's probably one of the hardest things to say when they don't. Good luck

Thanks for the insight... btw, your chart looks pretty Smile

carrielb12 · May 2010

O2BaMom:
bethe24:

Do you and your H have additional life insurance policies other than what is offered from work?

From work, I have 50k, H has 30k. Since we plan on having children in the near future we just recently met with an insurance salesman (blah), and now I have to decide what to do. Do you have term or whole life, or a combination of the two? And do you have enough coverage to get by or enough coverage to live comfortably in case of a death?

I have a life insurance policy and we are looking into one for DH. I mentioned that to my boss, who is a very knowledgeable man, he told us whole life is a big waste (but a big money maker for the insurance companies). I can?t remember the exact reason but I figure my boss has no reason to lie to me so I believe it. Hope that helps, and GL!

If you ahve a good retirement built up then yea it might be a waste. If not...then wow...you ahve a lot of hard times ahead of yourself and so does your family if you pass. I would not want mine to go through the worries of money on top of my death.

carrielb12 · May 2010

kelann2010:
Neither DH and I get life insurance through work because it isn't offered. So instead we each got our own policy. Since he is the primary bread winner he went with a combined plan and i just went with a universal plan because it was so cheap to start out with at my age (24). We both have coverage that would let us live comfortably at the moment thinking of our future as well if we are lucky enough to have children, we can always increase our coverage during that time they are living at home to cover their expenses etc. So i think it was a great time to start our life ins due to where we are at in our lives right now.

That's awesome

Milliways · May 2010

carrielb12:

I sell life insurance at State Farm. I currently have 250k and me and DH. For us, that's enough to pay off our mortgage, student loans, and other debt. It also gives us mourning time. You are typically suppose to put about 5 years or your annual income in life insurance on top of your debt. We didn't do that because it was too expensive. DH and I both have 30 year term return of premium policies. What is nice about that is after the 30 years if we are both alive, we get everything we put into back. Which then, I'll put into a Universal life policy. Life insurance is the smartest thing you can do for a family and marriage.

I think it's great you are thinking about it. So many times I have seen parents and spouses coming in to see if they s/o had life insurance. It's probably one of the hardest things to say when they don't. Good luck

This is what I have from State Farm, in additon to insurance offered from our mortgage company that will pay off the mortgage in case something happens to one of us.

When my Father died, he did not have a sufficent life insurance policy, I refuse to leave the same burden to family.

j_luvs_r · May 2010

I have term life for $100,000 from my previous employer. I transferred payment to me so I could continue it at the rate I have now. R has $100,000 too through his employer which I believe is also term.

MissLadyTay · May 2010

We don't have additional life insurance yet. MH has a policy via his employer, but I can't remember how much it's worth - I think $100K? Getting some extra is at the top of our to-do list. I need to do more research.

Thanks for the reminder!

rrcraz7 · May 2010

We both carry through work and also have an additional policy on both of us with enough coverage for est. funeral costs and to pay off the house.

I, sadly, do not know what kind of policies they are. It's DH's area of expertise and he handled it all.

carrielb12 · May 2010

Milliways:
carrielb12:

I sell life insurance at State Farm. I currently have 250k and me and DH. For us, that's enough to pay off our mortgage, student loans, and other debt. It also gives us mourning time. You are typically suppose to put about 5 years or your annual income in life insurance on top of your debt. We didn't do that because it was too expensive. DH and I both have 30 year term return of premium policies. What is nice about that is after the 30 years if we are both alive, we get everything we put into back. Which then, I'll put into a Universal life policy. Life insurance is the smartest thing you can do for a family and marriage.

I think it's great you are thinking about it. So many times I have seen parents and spouses coming in to see if they s/o had life insurance. It's probably one of the hardest things to say when they don't. Good luck

This is what I have from State Farm, in additon to insurance offered from our mortgage company that will pay off the mortgage in case something happens to one of us.

When my Father died, he did not have a sufficent life insurance policy, I refuse to leave the same burden to family.

Sorry about your loss

carrielb12 · May 2010

rrcraz7:

We both carry through work and also have an additional policy on both of us with enough coverage for est. funeral costs and to pay off the house.

I, sadly, do not know what kind of policies they are. It's DH's area of expertise and he handled it all.

Be careful with the policies through work. Sometimes in fine print they have that you haev to actually die while on the job to get your life insurance. The best thing to do is take it to a specialist and have them review it.

Temp356619000002780 · May 2010

I sell insurance and yes MH are covered! You are all so young you should buy now and I do not recomend a term life policy! That's like renting and it's a waste of money. I wouldn't say 8-10 times your pay, but enough to cover your mortgage, car, and any debt including burial expenses and 1 year pay.

byrne15 · May 2010

we wanted enough so that if one of us passed ( or both)...the house and all debts would be paid, several children could go to college and basically be well taken care of...

between dh and i we have almost 1 million coverage

becs11048 · May 2010

Both DH and I have $100k each through work

We also have an additional $250k per person of 30 year term and then $100k each of whole life insurance... whole life will continue until our death whereas the 30 year is just that and will disappear when we are in our 60s

So, if we are both still working we have $450k each of life insurance, which is enough for us to continue our lifestyle, provide for kids/leave something behind as well as not have to work for a few years if need be

becs11048 · May 2010

O2BaMom:
bethe24:

Do you and your H have additional life insurance policies other than what is offered from work?

From work, I have 50k, H has 30k. Since we plan on having children in the near future we just recently met with an insurance salesman (blah), and now I have to decide what to do. Do you have term or whole life, or a combination of the two? And do you have enough coverage to get by or enough coverage to live comfortably in case of a death?

I have a life insurance policy and we are looking into one for DH. I mentioned that to my boss, who is a very knowledgeable man, he told us whole life is a big waste (but a big money maker for the insurance companies). I can?t remember the exact reason but I figure my boss has no reason to lie to me so I believe it. Hope that helps, and GL!

I would, respectfully, disagree with your boss. Whole life pays out in your death, no matter what your age (as long as you haven't defaulted on your payments). You also typically get a rate of return of 4-5%, which is more than some savings accounts. I would recommend that you research this more before making your decision.

brookelynpaisley · May 2010

We each have $10,000 policies through work. When we got married, I bought additional policies covering me for 5x my salary (which would pay off a house in our budget) and him for $150K.

rrcraz7 · May 2010

carrielb12:
rrcraz7:

We both carry through work and also have an additional policy on both of us with enough coverage for est. funeral costs and to pay off the house.

I, sadly, do not know what kind of policies they are. It's DH's area of expertise and he handled it all.

Be careful with the policies through work. Sometimes in fine print they have that you haev to actually die while on the job to get your life insurance. The best thing to do is take it to a specialist and have them review it.

Seriously? Thats interesting. I'll have to look into it.

Our other insurance is through State Farm Wink

carrielb12 · May 2010

bethe24:
carrielb12:

I sell life insurance at State Farm. I currently have 250k and me and DH. For us, that's enough to pay off our mortgage, student loans, and other debt. It also gives us mourning time. You are typically suppose to put about 5 years or your annual income in life insurance on top of your debt. We didn't do that because it was too expensive. DH and I both have 30 year term return of premium policies. What is nice about that is after the 30 years if we are both alive, we get everything we put into back. Which then, I'll put into a Universal life policy. Life insurance is the smartest thing you can do for a family and marriage.

I think it's great you are thinking about it. So many times I have seen parents and spouses coming in to see if they s/o had life insurance. It's probably one of the hardest things to say when they don't. Good luck

Thanks for the insight... btw, your chart looks pretty

Thank you Smile let's hope it stays that way ha.

STL34 · May 2010

I have a $50k whole life policy that my parents started when I was a child. I pay about $100/year for a few more years and then it will be paid up. I also have a $100k policy from work and term life/additional disability policy the life part, I believe is another $100k. My husband has a $50k policy. We both also have money in 401k and other retirement accounts. Our insurance isn't the best, but is sufficient pre-kids. Once we get PG, we will consider additional insurance. Since I earn more than MH, my insurance coverage will probably remain at a higher level than his. Other than our mortgage, I have a few more payments on my car and I have student loans. However, all of my student loans are government loans that disappear if I die.

Temp356619000002780 · May 2010

becs11048:
O2BaMom:
bethe24:

Do you and your H have additional life insurance policies other than what is offered from work?

From work, I have 50k, H has 30k. Since we plan on having children in the near future we just recently met with an insurance salesman (blah), and now I have to decide what to do. Do you have term or whole life, or a combination of the two? And do you have enough coverage to get by or enough coverage to live comfortably in case of a death?

I have a life insurance policy and we are looking into one for DH. I mentioned that to my boss, who is a very knowledgeable man, he told us whole life is a big waste (but a big money maker for the insurance companies). I can?t remember the exact reason but I figure my boss has no reason to lie to me so I believe it. Hope that helps, and GL!

I would, respectfully, disagree with your boss. Whole life pays out in your death, no matter what your age (as long as you haven't defaulted on your payments). You also typically get a rate of return of 4-5%, which is more than some savings accounts. I would recommend that you research this more before making your decision.

I have to agree with this, your boss is clueless.

carrielb12 · May 2010

rrcraz7:
carrielb12:
rrcraz7:

We both carry through work and also have an additional policy on both of us with enough coverage for est. funeral costs and to pay off the house.

I, sadly, do not know what kind of policies they are. It's DH's area of expertise and he handled it all.

Be careful with the policies through work. Sometimes in fine print they have that you haev to actually die while on the job to get your life insurance. The best thing to do is take it to a specialist and have them review it.

Seriously? Thats interesting. I'll have to look into it.

Our other insurance is through State Farm

That a girl. Best company in the U.S Wink

Temp356619000002780 · May 2010

1 more thing for those with life insurance through work that is a group rate! You will also lose that policy when you either quit, get fired, or laid off! That policy in most cases will not follow you!

brookelynpaisley · May 2010

I checked on mine - it's not $10K thorugh work - it's 1.5X salary. Then we have the additional policies on top of that.

carrielb12 · May 2010

mari2003:
1 more thing for those with life insurance through work that is a group rate! You will also lose that policy when you either quit, get fired, or laid off! That policy in most cases will not follow you!

Veryy good point!! Another reason to check with a specialist about your work life insurance.

bethe24 · May 2010

To the lovely insurance saleswomen: The guy I've met with works for Northwestern Mutual... any thoughts on that company?

carrielb12 · May 2010

My co worker's grandpa had life through them. She said there were no problems with them besides the fact that they did not go over her "needs". That is key because if you do not know about life insurance you are counting on that person to tell you what you need. If he/she does not ask you what you need and just gives you an amount to get a sale, then that's a problem.

Temp356619000002780 · May 2010

bethe24:
To the lovely insurance saleswomen: The guy I've met with works for Northwestern Mutual... any thoughts on that company?

Um they are ok. I'm not a huge fan, but they can help with all your financial needs and most of the sales reps know the business in and out. I use to work for State Farm and was a life specialist, I am currently with Allstate. Just make sure you read the terms of the policy and that you understand what you are buying. If not then do not purchase. Their are a ton of products out their and it can get confusing. From term, whole life, to universal life and variable products. It gets very difficult.!

jteneback · May 2010

DH and I each have $500k in term coverage that we got when we bought our house. He has some additional coverage through work. We wanted to have enough so that the survivor could pay off the mortgage and not have to be stressed about it. We will probably get more when we have kids.

I am a financial planner and I recommend term to all my clients. You can get 20 or 30 year term which will take you through your kids' college. I have seen too many "permanent" policies implode after 10-15 years because the agent sold an unrealistic set of assumptions. It's not always a bad idea, but the average person can't evaluate it properly.

Milliways · May 2010

mari2003:
1 more thing for those with life insurance through work that is a group rate! You will also lose that policy when you either quit, get fired, or laid off! That policy in most cases will not follow you!

This is a good point, although most carriers have program where you convert your policy to an individual policy (if it is a policy that you contribute to not one that is 100% company funded), however you can normally get more coverage for the money with an individual policy.

bethe24 · May 2010

mari2003:
bethe24:
To the lovely insurance saleswomen: The guy I've met with works for Northwestern Mutual... any thoughts on that company?

Um they are ok. I'm not a huge fan, but they can help with all your financial needs and most of the sales reps know the business in and out. I use to work for State Farm and was a life specialist, I am currently with Allstate. Just make sure you read the terms of the policy and that you understand what you are buying. If not then do not purchase. Their are a ton of products out their and it can get confusing. From term, whole life, to universal life and variable products. It gets very difficult.!

It is confusing and overwhelming. I have home & auto through Allstate... maybe I should look into them too?

triciaj1 · May 2010

I work, DH is a SAHD. I have 1/5x my salary through work, but I got an additional 500k split 300k for me and 200k for him.

youngin12 · May 2010

jteneback:
DH and I each have $500k in term coverage that we got when we bought our house. He has some additional coverage through work. We wanted to have enough so that the survivor could pay off the mortgage and not have to be stressed about it. We will probably get more when we have kids.

I am a financial planner and I recommend term to all my clients. You can get 20 or 30 year term which will take you through your kids' college. I have seen too many "permanent" policies implode after 10-15 years because the agent sold an unrealistic set of assumptions. It's not always a bad idea, but the average person can't evaluate it properly.

I am glad you posted. I have been told term over and over by financial planners.

steff13914 · May 2010

Great question! I am interested to know too. I just brought this up to my husband, and I think we will be going through the company that we have homeowners insurance through.

jteneback · May 2010

bethe24:
To the lovely insurance saleswomen: The guy I've met with works for Northwestern Mutual... any thoughts on that company?

If you were to get a permanent policy, this is a great company. It is very reputable, many of their agents are certified financial planners, and they are financially strong.

carrielb12 · May 2010

jteneback:
bethe24:
To the lovely insurance saleswomen: The guy I've met with works for Northwestern Mutual... any thoughts on that company?
If you were to get a permanent policy, this is a great company. It is very reputable, many of their agents are certified financial planners, and they are financially strong.

This. Make sure whatever company you go with is financially stable. Also, if you could look into their death claim process.

Jessiac_3 · May 2010

youngin12:

I don't know much about life insurance, in fact, I recently started researching this myself. From my understanding, term life insurance is what you need and you want a policy that is 8-10 times the amount of your pay. So if you make $50,000 a year, then you want a $500,000 policy.

Term life insurance is very cheap compared to whole life insurance. When I got a quote for DH who is 26, 200 pounds and considered very healthy, his monthly quote was only $24.00.

This. You want to make sure you have enough for funeral expenses, to cover any debts, and to have money left over to cover the other person's salary in case they are no longer with you. (Child's education, etc.)

Whole life is a waste of money...you're better off getting a term policy and putting the difference between the two in a savings account.

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