life insurance: term or whole? more after baby

Re: life insurance: term or whole? more after baby

• MrsAJL member

  June 2011

  We have term life on both DH and I (20 years).  Our financial adviser said that was sufficient.
  

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• L L CG

  June 2011

  My opinion about life insurance is that I want enough on DH to be able to take a year off of work (replace his salary and mine for a year), pay off our house, pay for DD's college and pay off any debts we have should he get run over by a bus. 

  DH doesn't have a policy on me.  He thinks he'll be able to work without taking time off and will find a replacement wife swiftly should I meet an early demise.  Apparently this replacement wife will do his laundry with minimal b!tching, although I don't know what that has to do with life insurance.

  I would decide what you would want paid for should you and DH die and get that much in a term life insurance policy.  We do term because we would rather invest money by other means. 

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• FireChiefsBride member

  June 2011

  We've been having this discussion with our financial adviser lately, as well.  I think we're leaning towards whole bc we're so young and then it's really easy to get your money back out later down the road and flip it to retirement for more of a return if we want the money back out.  That's my vague understanding, at least.

  DH and I both have policies through work that meet our needs, so that is a big factor for us as well.

  However, we did switch financial advisers last year bc we felt like the guy we were seeing was more about selling us a policy (obv his job) than setting us up for a healthy financial future. I adore the lady we're seeing now.  She's straightforward about where she makes her money, but she provides us with a lot of info and room to make decisions.  

  
  

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• HSartteach member

  June 2011

  We have term policies that are ROP...return of premium.  The one that DH has in case he passes is larger because I make much less than him and he wanted to make sure I could pay off the house, take care of L, etc.

  When the time is up, if we are still alive, we get our principle back--we thought that was a nice option for when we are older--we don't plan on dieing.  

  eta: edited to change the "p" in r.o.p.
  

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• KDM2006

  June 2011

  When we finally managed to make it a priority to get a policy, I really wanted to get whole life, mainly because everyone says it's best to get it while the price is low and you are in good health and because I feel like it's a waste of money to be throwing at term.  Of course, we just went with a term policy because it's cheaper for the amount we were wanting.  I believe we both have 1 mil in coverage because DH's business might just be able to get out of debt if he were to die, but at the same time, I would have a lot to consider and try and figure out if I even want his businesses to continue or not.  I wanted a lot on myself so again, DH's business could get out of debt and he would be able to hire someone full time to take care of the kids, because I doubt anyone in our family would be able to do so.  I imagine if both of us were to die at the same time, it might be a bit of overkill, but a nice cushion for our kids future and whoever takes care of them would be great.  My plan is once the kids get a bit older, but not old enough that we won't be in too bad of health, that we work on a whole life policy.  Probably about 5 years or so, which would make it easier if both kids would be in school, for someone to take care of them.  I don't think they really offer whole life policies with that much coverage and if they do it's obviously crazy expensive.  So we would then need to access if it's worth it to keep the term policy or if it's efficient with just the whole.  HTH!
  

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• Xtina712 member

  June 2011

  We did a needs assemesment to make sure we would have enough to cover house payment, children's education, childcare and random expenses.  We did as much whole life as we could reasonably afford and made up for the rest in term.  We can convert the term to whole life at any point though so in 5 years we can still recoup some of it if we are more financially viable.  I think I was especially concerned because I had 2 uncles die recently and my aunts have had nothing.  I refuse for that to be me.

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• ManciniD

  July 2011

  
  Yes, we did get life insurance for each of our children. We paid a few extra dollars and our life insurance company includes it as a rider on our policy. It is a nominal amount, and will basically cover funeral expenses. God forbid, if anything were to happen, we would like to be able to give our child a decent funeral. It?s a very small price to pay, and we would rather let the life insurance company handle such payments allowing us the time we need to grieve. I know none of us like to think of such issues, but once it?s done, there?s no need to think about again. It mainly meets a practical purpose.
  
  Denise

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• Jen1007

  July 2011

  You need more insurance now that you have DD. I like term because it is so cheap but you now will have more expenses if DH or you die.  Some term policies are convertible to a permanent policy so see if your financial guy has that as an option.  That way if you cant afford the expensive price of a permanent policy now but still want to have coverage you have that option.  You could also just get a regular term policy and then later get a permanent policy.  Whichever you decide is better for you and your fam.  I think that everyone our age should at least have a term policy.  They are so ridiculously inexpensive and provide quite a bit of coverage in case something happens.  HTH and good luck!

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