Life Insurance (tear-worthy info inside)

PostyNotes · November 2011

I'm curious how many of you ladies have life insurance or have dealth with life insurance before?

Reason I ask is that recently a friend of mine lost her 30 yr old DH in a freak accident (weather related). They had just had their first child 2 months before that and had only been married a short while - approx. 2 yrs.

This got my DH and I thinking that we should be getting on the ball (probably yesterday) with life insurance because you just never know. The sense of urgency to do this really has me nervous. I just didn't expect it to hit home as hard as it did. I really couldn't imagine going through that, let alone having to worry about a newborn, finances etc.

So I'm curious to know what plans you ladies have made for the "what-ifs" in life? What type of ins. did you purchase, term length etc etc. I'm still in the midst of my own research but I'd like to hear your thoughts.

TIA!

brookelynpaisley · November 2011

I'm sorry for your friend's loss.

I have $10K automatically through work. I have additional policies on each of us (purchased through my employer, but they can go with me if I leave) for enough to cover the cost of the house. I think mine is 8 times my salary (the max allowable) and DH's is for a flat amount that is also the max. Beyond that, I honestly don't know all that much about them, though I probably should.

Spanisheyes00 · November 2011

I have term through work, and it makes sense to have it since the cost is so little for piece of mind.

Years ago I bought whole life which is more expensive and when it comes down to it, not worth it. I wish I hadn't, but I worked for an insurance company so I got it at a discount and the premium is locked for life. But still not worth it.

katied2011 · November 2011

My DH and I both have whole life plans - The kind that we don't have to pay for after the age of 65. I got mine right once I became a nurse (age 20) and I only pay $35 a month for a $200,000 policy. He got his when he was 25 and he pays $35 a month for a $150,000 policy. We actually have an appointment with our insurance man to get more coverage. .

FirefightersBride · November 2011

that is awful about your friend! We got extra life insurance when I was PG with DS. DH has some through work, but we wanted to make sure we were really ok. With DH's work, we wanted to make sure we were covered since he is the only breadwinner at this point. Definitely something to get!

leanna0127 · November 2011

DH and I both have life insurance policies out on each other, and when we have kids we are going to up the amounts. We just have term policies since they are more affordable but if you can afford whole life insurance policies they are great for retirement and loan purposes in the future. If you are young and healthy they can be SO cheap. DH gts his free with his company and mine is only $25/month for $250K with an outside private life insurance company. You cannot afford to NOT have one.

Jessrof · November 2011

My hubby is covered through work up to $500,000. I currently do not have any because I am a student and not really bringing money into the family right now, but once I get a job I will def sign up for it. Sorry to hear about your friend's hubby...

dani2480 · November 2011

I purchased life insurance for both me and DH through my work. I'm worth about twice as much as DH if I die (because my company's policy will give me a bigger policy than DH). But either way it would be enough to cover necessary expenses and help pay off the mortgage (mine would completely pay off the mortgage with money to spare).

DH works in a very dangerous line of work. He has some death/insurance benefits built into that as well. And if something happened to him, his coworkers would likely step in to help out (as we've all done when some of his other coworkers have lost their lives).

sgt_ema · November 2011

I'm an insurance agent and there are a lot of policies out there depending on your needs. A "peace of mind" policy is a term policy. If you want something that will give you stability throughout, then a whole life policy is more what you are looking for. I don't know who you are insured with but talk to your agent and set up a meeting just to review your options so you can make the best decision that fits you and your DH. Good luck and ps you can NEVER have "TOO" much life insurance!!!

PostyNotes · November 2011

Spanish -

You mentioned previously working for an ins co, can you tell me why you'd choose Term over Whole life now? Why didn't you like it?

LegallyBlonde217 · November 2011

Wow, that's terrible to hear. I'm sorry for your friend.

Right now we both have term insurance through our jobs. I am a licensed life insurance agent so I purchased a $100,000 whole life policy on myself about 8 years ago. Once I am pregnant we will get a whole life policy on DH and 20 or 30 year term policies on both of us that would be used to take care of our children should something happen to one (or both) of us while they are minors.

brookelynpaisley · November 2011

dani2480:

I purchased life insurance for both me and DH through my work. I'm worth about twice as much as DH if I die (because my company's policy will give me a bigger policy than DH). But either way it would be enough to cover necessary expenses and help pay off the mortgage (mine would completely pay off the mortgage with money to spare).

DH and I frequently joke that I'm worth more dead than alive/. Funny

Spanisheyes00 · November 2011

Life insurance is meant to cover your assets in the event of the death of your or your spouse. Term life and whole life do the same thing, but term, is strictly insurance. Whole also has an investment portion which has a cash value and increases over time. You can also borrow against this.

As with any investment, you aren't guaranteed a return on it. Like i said, its more expensive with it and if you decide to cancel the policy, you will get a small portion back, but nothing compared to what you've paid out.

PenDun · November 2011

I have insurance through my job, but it's not a whole lot. One years salary, I think. H and I both took out term life policies right after we found out I was pregnant with DS. I believe they're 30 years and $250,000. My dad is a financial advisor so he got us set up, otherwise we probably wouldnt've been so on the ball.

sgt_ema · November 2011

Spanisheyes00:

Life insurance is meant to cover your assets in the event of the death of your or your spouse. Term life and whole life do the same thing, but term, is strictly insurance. Whole also has an investment portion which has a cash value and increases over time. You can also borrow against this.

As with any investment, you aren't guaranteed a return on it. Like i said, its more expensive with it and if you decide to cancel the policy, you will get a small portion back, but nothing compared to what you've paid out.

I'm not sure which company you worked for but I have never heard of this. Term is temporary, whole is long term. Once your term policy is up, you must renew and if you do not then the money you put in is gone and you do not get it back. With whole life, you can borrow against it but in the event the insured dies, no matter how long the policy has been in effect, you get the total amount of death benefit selected.

Whole life premiums never increase and if you decided to renew a term policy, you are subject to premium increase due to the insured's age or cost increase for life insurance.

sgt_ema · November 2011

Spanisheyes00:

Life insurance is meant to cover your assets in the event of the death of your or your spouse. Term life and whole life do the same thing, but term, is strictly insurance. Whole also has an investment portion which has a cash value and increases over time. You can also borrow against this.

As with any investment, you aren't guaranteed a return on it. Like i said, its more expensive with it and if you decide to cancel the policy, you will get a small portion back, but nothing compared to what you've paid out.

I'm not sure which company you worked for but I have never heard of this. Term is temporary, whole is long term. Once your term policy is up, you must renew and if you do not then the money you put in is gone and you do not get it back. With whole life, you can borrow against it but in the event the insured dies, no matter how long the policy has been in affect, you get the total amount of death benefit selected.

Whole life premiums never increase and if you decided to renew a term policy, you are subject to premium increase due to the insured's age or cost increase for life insurance.

hopingwaiting · November 2011

We both have life and disability insurance. In our area we couldn't keep our current lifestyle or house with one income.

dreambig527 · November 2011

I'm sorry to hear about your friend!

Yes, you should have life insurance. You want your baby and your DH to be protected financially if (God-forbid) something should happen to you.

My DH and I have insurance through work,and as soon as we get a BFP plan to get policies on our own as well. We've discussed and want to have enough to cover funeral costs, any debts, and help with baby costs.

AmandaBoud2011 · November 2011

sgt_ema:
Spanisheyes00:

Life insurance is meant to cover your assets in the event of the death of your or your spouse. Term life and whole life do the same thing, but term, is strictly insurance. Whole also has an investment portion which has a cash value and increases over time. You can also borrow against this.

As with any investment, you aren't guaranteed a return on it. Like i said, its more expensive with it and if you decide to cancel the policy, you will get a small portion back, but nothing compared to what you've paid out.

I'm not sure which company you worked for but I have never heard of this. Term is temporary, whole is long term. Once your term policy is up, you must renew and if you do not then the money you put in is gone and you do not get it back. With whole life, you can borrow against it but in the event the insured dies, no matter how long the policy has been in affect, you get the total amount of death benefit selected.

Whole life premiums never increase and if you decided to renew a term policy, you are subject to premium increase due to the insured's age or cost increase for life insurance.

The problem with Whole Life is that the cost is so much more than if you bought a term policy and saved the difference, you would have a nest egg to "borrow against" that you never have to pay back(like you would on cash value from Whole Life or else surrender the policy), you have insurance as long as you need it, (until your kids are grown), and then the "nest egg" can pay for any final expenses you have once you are older and more finanically independant.

My DH and I have $300,000 on 35 year term policies for ourselves, plus we both have 2x our salary from each of our jobs, plus we are on each other's benefits so there is like $25,000 extra from the other company if we die.

KymRandall · November 2011

As soon as we got married, DH and I set up a retirement and life insurance fund (term and perm) with Northwestern Mutual. Our insurance guy is awesome and explains everything really well, and I feel so comfortable with everything. I would definitely find someone you trust and get that started!

btaylor19 · November 2011

My husband and I both have policies paid for by our work. I also have a separate 20 year term policy on me. My husband did not qualify due to health concerns so we are in the process of figuring out an alternative for him.

sarahnwill · November 2011

We bought through Nationwide (Nationwide is on my siiiide). We have $300,000 on each other for a term of 30 years.

His is $35 a month, and mine is $25/month (I'm in the super preferred tier for health, and he is in the preferred tier).

melgeorge7189 · November 2011

I think we pay a total of $50 for both me and DH, but we went through the same company that we have our homeowners and car insurance so we got a $35 discount. $15 a month is definitely worth it for the peace of mind. We thought about the main thing one or both of us would struggle with in case, and that would be the mortgage, so we have $250K for each. And I am so sorry about your friend.

katiebug58 · November 2011

DH and I both have insurance through work plus extra that we pay for. I don't know what kind it is or even how much we pay since it is directly taken from our check. We have enought to pay off the house and any final expenses.

Heavenisaplace · November 2011

That is so sad. We don't have life insurance but it's on our To Do list. (I am getting my advice from Dave Ramsey.

SnoopyCubed · November 2011

DH and I both have life insurance through his job. I have a $100k policy. We may or may not increase it when we have children. I currently qualify for a $500k low cost policy so I might look more into that.

purplehaze11 · November 2011

I'm sorry about your friend.

DH and I each have term insurance for the amount of our mortgage, should anything happen.

I also have a lifetime one, as I had a trust fund, and chose to invest it that way.

We will increase our term insurance when we have children.

GermanGirl2007 · November 2011

Wow, that is SO sad. I am so sorry to hear about your friend. Sad

My DH has a huge life insurance policy, but it is due to his line of work. It is like $500,000. I have a $25,000 policy through DH's job, and a $15,000 policy through my job. I still would like to create living wills, but we haven't gotten around to it. It's hard to think about when you are 30, and totally healthy, but like you said, things happen that we just don't plan for. Sad

emu0013 · November 2011

DH and I purchased a supplemental policy through Allstate after his stepmom passed away unexpectedly and his dad and her didn't have any.

We both get 1.5 times our salary through work, and with the allstate policy we had to have physicals, (I have high blood pressure) another reason we wanted to get it early on. We pay $68/month for a $500K policy, that would cover both cars, the mortgage, our bills with about 200K left over. We were told to get enough to cover house and cars. We are locked in at our montly premimum.

Denisem01 · December 2011

I am so sorry for your friend?s loss. Life is uncertain and these kinds of incidents help to remind us to be prepared to cover at least the financial loss your family may have to endure if either spouse died unexpectedly.

Of the two types of life insurance, term life insurance is the most popular product. It?s pure insurance without an investment component attached to it which is why it is 5 to 10 times cheaper than whole life, and the best option for growing families on a tight budget. You can buy a level-term life insurance policy and lock those rates in for a maximum period of 30 years. I?d suggest you visit online life insurance quoting services. They represent hundreds of life insurance carriers and you?ll find it easy to compare life insurance rates, choose from a variety of products and get the best policy for yourself.

Denise Mancini
Disclaimer: I work for AccuQuote and this is my personal opinion.

rchris · December 2011

I'm sorry for your loss. I was in a similar situation a few years ago. A family member died and he only has his work's term life insurance of $10k. This was barely able to cover all the expenses of his death, and on the cheap. I would have to suggest you look into different types of life insurance policies that can better tailor your needs. Think about your age and health and how much benefactors would need.

Want a personalized experience?

Life Insurance (tear-worthy info inside)

Re: Life Insurance (tear-worthy info inside)

Choose Another Board

Search Boards