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August 2011 Moms
any good life insurance recs??
We're starting to think about the fun stuff - like what would happen to our baby if we both died! I have a plan included with my work benefits, but it's not enough and DH doesn't have any currently. Any suggestions??
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Re: any good life insurance recs??
DH has great insurance through his job, it is high risk and comes with territory though.
I did term insurance for myself, I got it through Protective Life, 500,000$ for 35.44 a month. Can't beat that, but I am young and in great health.
We also have Aflac insurance to cover accidental injuries, hospital stays, and cancer. This has been the biggest bang for our buck since I have been in PT for 6 weeks now and get "paid" $50 a visit.
Thanks, I'll look into that. Not sure how young you are - I am 29 and DH is 31. We're thinking of only getting it for DH b/c his job is more secure than mine and he would be fine financially if something happened to me - plus, my 150K plan from work would cover any death related expenses plus some.
35.44 is a good plan - considering the one DH looked into was 30/mo, but also had a required $180 annual membership and I don't think it covered as high as 500K.
I am 26, DH is 27 and a firefighter. I am a teacher who is currently unemployed.
I went through Edward Jones Investments and their FA priced out several companies for me.
Aflac Policy is through my DH's job because injuries and cancer, well they come with the job. I had disability for me through them but it went into affect after I was pregnant so will not benefit us this pregnancy and i dropped it after losing my job.
I'm a huge Dave Ramsey nerd!
Term is the way to go, and Dave would recommend to get 10x your salary, with the idea being that if you make, say 40k and you pass and life insurance gives 400k, those that remain would be able to invest the 400k and pull your old salary amount or near that in interest each year without having to make a huge dent in the actual 400k itself.
The company I always hear him endorse for life ins. is Zander. https://www.zanderins.com/
hmmm...10x salary. I think that would be a bit spendy. Maybe we'd go a bit lower than this since we don't even spend half of what we take home in a month, and we also have retirement and currently a good amount in savings and my job does provide twice my annual salary in life insurance. But, maybe 10x what our annual expenses are and adding on a bit might be the way to think about it.
Thea idea of life insurance is to make sure that your family will be taken care of in the event of your death. Most people with children would want to leave behind enough to raise their child, pay for college, and still leave the widow/ widower behind with enough to get by year to year. 10x your salary might sound like a lot, but when you start to add up all of this stuff, you get a pretty high number. I've heard all kinds of stories about people with and without it, and can say that I wouldn't want to have to worry about going back to work right away or how I would make ends meet because I didn't get enough, you know?
Term is most likely the way to go, and you can shorten the length of coverage time from anywhere from 10-30 years, which will impact how much you pay each month. Every carrier is different, so it pays to shop around for quotes, just like you would for car insurance. And remember that not all life insurance is transferrable from job to job (meaning if you leave a company, you might not always be able to take it with you).
::Steps off soap box::
Happy hunting!
We're in a similar setup, except that we've gone with 30 year policies to give us a little more time to reach the paid-off point. We're 100% debt free right now, but we're renting and probably won't buy a home until DH finishes PhD work, which won't be for 5-6 years. But, hopefully after 30 years we're 100% debt free with a paid for house and kids either done with college or money set aside for that purpose as needed. I'm the breadwinner right now, so we have 600k on me (age 29) and 300k on full time student DH (age 26). We may adjust later down the road.
I used to sell life insurance.
Tip #1 - if you find a salesperson that only recommends whole or universal life, run like h*ll.
I would recommend purchasing a term policy. For working mothers or SAHM's, consider this...
would you want your home paid off if something happened to you?
would DH need to pay someone to help care for the kids without you around?
is your income needed to help pay the monthly bills?
would you want to set up a college fund for your kids if you were to die?
do you have any major debt (student loans?) that you would want to be paid off if you were to die?
.... We have enough life insurance on me (I am a SAHM) to pay off our mortgage and pay for a nanny. DH could use my 401(k) to set up college funds for the kid(s) if he so desires.
Term life makes sense. You might want to get a private policy for your DH since most life insurance policies issued at the workplace offer very little coverage. You should sit down together to calculate how much coverage is needed ? while 10 times the annual income is generally right, not everyone needs that much coverage, and some may need more. It all depends on your personal financial situation. Check online life insurance quotes for a comparative study of life insurance products, prices, terms and conditions and financial ratings of each company.
Denise