Do you have life insurance?

Mrs.Hizzo · August 2010

I mean for you, not your husband. Today we were at my dad's office finalizing our will, and he asked me if I had a policy. I said no, because DH and I thought the premium would be a waste of money since he could probably afford to "replace" me if he needed to. My dad suggested we reconsider, since I'm young and healthy and a premium wouldn't cost very much for me, and a live-in nanny (which is what he would have to have) could cost a bundle every year.

So, do you have a policy? If so, how did you decide what you are "worth?"

Baby_Bunny_Hopeful · August 2010

we just got ours- 250k each. Enough to cover our mortgage and a bit left over....

My insurance is less than $30/month, but DH's is over $70/month. Men are much more expensive to insure, apparently!

ToBeMrsT · August 2010

we don't yet, but we plan to look into one soon.

mandymack · August 2010

I thought the same as you a few years ago: I'm a SAHM and not contributing anything financially, why do I need Life Insurance for DH? However, I am Emily's "daycare" and "after school care" provider right now and, should I pass, that would cost DH a lot of money every month.

Our Insurance Agent also reminded me that anything can happen and that my DH's current salary/position isn't fail-proof and I definitely agreed and came around. I could end up back at work and DH out of work and my Life Insurance would be all we had in the even of my death and it's vital I lock in premiums now, while I'm young and healthy, just as you already stated.

We took out a 40-year Term Life policy on me for $1.25M so that our house would be covered, the loss of my potential salary would be covered for a few years, and so DH could continue living and giving Emily a good quality of life. We live in a very HCOL (San Francisco, CA) so, to some, this might seem like an exorbitant amount of money but it's really not much at all in the grand scheme of things.

JOEBunny · August 2010

No, we don't need it. I had substantial savings in my 401K when I was working that DH could use for the kids, if needed. He would likely not need it. Without me, he would probably move to a different house with the kids, which we already own and has a cheaper mortgage, but is very close to the schools the kids would go to for middle and high (I would move there if he died too)

Dr.Loretta · August 2010

We're working on keeping my company LI, as I"m eligible for group premiums. I'm looking at a small-ish policy--$50-100K. DH also has LI for me through his work, but I think it's a pretty small amount.

I figure I'm a SAHM, he needs to be able to cover my funeral expenses and setting up daycare for DD for a while. Then again, my mom just volunteered to come watch her FT if something happened to me.

MAprincess · August 2010

Yes, we both have policies. I am "worth" the same amount as DH. Our financial advisor reminded us that child care is a full time job just like the job DH has and that is what would have to be replaced if something were to happen to me.

GingerSB · August 2010

We each have a million dollar term policy.

susanmosley · August 2010

yes, I have one - can't remember the specifics.

MrsRebecca · August 2010

Yes, we have it on both of us. Our agent suggested $250K on me so that's what we went with. We do have more on DH though.

MainelyFoolish · August 2010

I have a $300k policy for 20 years (well, 18 years now, since I got it 2 years ago). We just ballpark estimated what it would cost to pay for daycare, afterschool care, summer camps, and a housecleaner and then rounded up. Anything left over can go towards DD's college fund. We didn't include any of the cost of the house or basic living expenses since we pay for those now without me bringing home a salary.

lwrigley2000 · August 2010

MAprincess:
Yes, we both have policies. I am "worth" the same amount as DH. Our financial advisor reminded us that child care is a full time job just like the job DH has and that is what would have to be replaced if something were to happen to me.

Same here. If I die, for DH to continute his job he would need to hire a full time caretaker (nanny, aupair, babysitter, etc...), house cleaner, pay for grocery delivery, dry cleaning pick up, drop off, etc... and help with child care costs. Lets say I was planning to go back to work when the kids were in school and my money would supplement DH's salary to go towards vacations, enrollment fees for kids activities, etc... all of that would still need to come from somewhere. I think it's much more then just covering my funeral costs (which run on average about 15-10K.).

Read2Me · August 2010

We both do. Mine is for 400K and DH's for 750K. I got mine before we even got married and DH just got his after Eva was born.

GeminA1 · August 2010

Baby_Bunny_Hopeful:
we just got ours- 250k each. Enough to cover our mortgage and a bit left over....

My insurance is less than $30/month, but DH's is over $70/month. Men are much more expensive to insure, apparently!

almost exactly the same for us(coverage is the same, but total for the 2 of us is just under $30/month)

cp760 · August 2010

We both have life insurance.

sparky88 · August 2010

We each have a 500K policy 30 yr term.

JAM2000 · August 2010

yes, we both have it.

DevonPow · August 2010

Yes, I do. I have quite a bit on me - enough for DH to pay off the mortgage and pay for a full time nanny for quite a while (he works very long hours and we have no family in state).

collyflower · August 2010

Yes, we have 250k on me - mostly to take into account childcare costs. DH has more.

NoelHC · August 2010

We have $500K on myself. We raised it after the second baby. I don't know if we will do it again after the third. It really isn't that much if you are healthy. I just want to feel like if anything ever happens to me my babies will have help.

als33 · August 2010

i do not understand people who do not have life insurance or say they don't need it. unless you are a millionaire several times over, i don't get it. i used to work in the business, so maybe i'm biased, but i've seen tons of sh*t happen out there.

and yes, technically, we sahm do not earn any money, but that doesn not mean we are worth nothing. what would your DH do with the kids? someone is going to have to care for them. clean the house. feed the family. etc, etc. this does not come free. and even if you have family members who are willing to help out, i for one, would not want to put someone elses life on hold so that they can help me take care of my family after my spouse passes away. also, i've heard tons of people say they'll just sell the house or move somewhere cheaper. so you just lost your spouse and now you want to go through selling your house and moving? and you think it's going to happen all smoothly and fast? not in this economy. and think about your kids. they just lost a parent, and now you want to move them out of the place they know as home?

yes, i am very opinionated about this topic! so if i ticked anyone off bc of what i've said, so be it. it's how i feel! Stick out tongue

Mrs.Hizzo · August 2010

als33:
i do not understand people who do not have life insurance or say they don't need it. unless you are a millionaire several times over, i don't get it. i used to work in the business, so maybe i'm biased, but i've seen tons of sh*t happen out there.

and yes, technically, we sahm do not earn any money, but that doesn not mean we are worth nothing. what would your DH do with the kids? someone is going to have to care for them. clean the house. feed the family. etc, etc. this does not come free. and even if you have family members who are willing to help out, i for one, would not want to put someone elses life on hold so that they can help me take care of my family after my spouse passes away. also, i've heard tons of people say they'll just sell the house or move somewhere cheaper. so you just lost your spouse and now you want to go through selling your house and moving? and you think it's going to happen all smoothly and fast? not in this economy. and think about your kids. they just lost a parent, and now you want to move them out of the place they know as home?

yes, i am very opinionated about this topic! so if i ticked anyone off bc of what i've said, so be it. it's how i feel!

Well, our original decision (not to have me insured) was based on DH's current salary being enough to cover childcare expenses without the need to sacrifice savings, college funds, retirement accounts, or our current home. But what someone said about job situations changing is a good point, along with a lot of other points that were raised.

DeniseMancin1 · September 2010

Life insurance policy rates depend on a number of factors ? your age and health being the primary ones. If you are young and in good health, the premium for a term life insurance policy would be lower as compared to other types of policies.

I think it would be a great idea to get a term life insurance for you aside from the one your husband has. It will provide additional coverage in case something was to happen to both of you. In case a tragedy falls upon you, your life insurance should be able to cover the cost of a stay at home nanny or any other type of childcare your kids may need.

I?d definitely encourage you to check quotes from different life insurance companies. You will get dozens of instant quotes on an online agency like AccuQuote.

Denise

SpartanGirl · September 2010

Yes. I am insured for enough to cover the expenses of my funeral and provide childcare for my kids. We spoke with a financial planner when making our choices and he helped us figure out what we wanted.

My advice to everyone who says they are "going to do it" or "going to look into it" - don't wait. DH and I procrastinated life insurance forever when I was pregnant with our first. We figured we had all the time in the world. Well, 4 months into my pregnancy, DH was diagnosed with cancer. He has been in remission for 4 years now and STILL no one will insure him. He's too much of a liability. You just never know what could happen.

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