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AliciaS1411
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Tell me about your Life Insurance
AliciaS1411
member
My husband has a $100,000 life insurance policy through the county he teaches in. I was talking to our State Farm agent today about adding my own policy, but I'm not really sure how much I need.
I'm a student, and I will have school loans to pay off. I'm trying to keep that in mind as I decide on what I need. The agent is sending me quotes for a Term Life policy for $100,000, $150,000, and $200,000.
What kind of policy do you have, how much is it worth, and how much do you pay each month?
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Re: Tell me about your Life Insurance
IT really depends on your debt. Do you have a mortgage or plan to buy a home in the next few years? Figure out what you would want to be covered just in case something happened to you or husband.
You can't compare each life insurance, everyone's sitution is different.
Also, you should make a will. I plan to get one done once we have the baby.
1) I hadn't thought about us buying a house. That will definitely make a difference on the policy I choose. Thanks!
2) and yes! A will is something we're looking into for sure.
Your agent should do a needs analysis with you to determine how much you need and what term length is best for you. Part of it depends on your debt, monthly expenses, etc. Keep in mind that if you are a SAHM you'll need to add in childcare expenses that will need to be covered if something happens to you. The amount also depends on what you want the life insurance money to do. Do you want it to just pay funeral expenses and certain debts, do you want it to cover expenses and temporarily replace income so the surviving spouse can take time off of work to stay home with the kid/s, do you want it to help with an education fund, etc.
You also can't compare costs with other people even if they have the same term and policy value. The cost is different for everyone based on age, gender, weight, medical history, tobacco use, and more.
med-free birth x2, breastfeeding, baby wearing SAHM
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Right now, my husband and I have a "first-to-die" policy. It's for $100, 000. Including our mortgage, that it is enough to cover any debts we have between us should something happen to one of us. We do not carry separate life insurance policies. We are young healthy with great family histories and pay less than $16/month. We figured that as young, healthy people, $100, 000 to pay off our debts completely was plenty and the person left would continue on and work, etc etc. The need for extra money wasn't there.
All of that being said, we got this policy when we bought our house 5 years ago and weren't even married. Now we're married with a baby on the way and it doesn't seem like enough. Sure debts would be paid for, but now what about paying college/university tuition? How difficult would it be for either of us to cover it on our own? Is just having debts paid enough for one of us to care for and raise a child alone? We will probably increase our policy amount, and of course, a "first-to-die" policy won't really cut it once there are children involved - it's not just being left to him or myself. So we've definitely got some changes to make. As well as a will to do!
I have a policy for 150K and it costs $10 a month. I'm not sure who it is through but the money comes right out of DH's paycheck. I'm thinking about getting a bigger policy. I'm a SAHM so we don't have daycare expenses but if something were to happen to me DH would. During the school year for three kids and during the summer for five kids. DH also works later hours and unless he finds another job would probably need a nanny.
I do at home daycare. I don't make too much but my income pays for fun stuff with the kids, holidays, and saving for emergencies. DH would still need to be able to afford those things but it would cost him more because he wouldn't have the time to bargain shop the way I do.
My DH and I each have $300,000+ in combined term and whole life insurance. I used to sell insurance as well. Usually, you get a small whole life policy that you can keep for burial costs. And add the cheaper term policy to make up the difference for the amount you want. Since my DH and I both work and our household requires both incomes, I wanted to have enough $ for him to be able to keep the household running without my income. If one of us were to become a single parent, things like buying cars and paying for college would be much more difficult so we wanted to have enough for that, too.
I have $40,000 whole + $250,000 term and pay around $70/month. My 20 yr term policy has a return of premium rider so if I don't die within the 20 years, we get back every dollar we paid in over the 20 years ($8,000, I think). Win-win!
My term life thru my employer is like $0.10 per $10,000.
My DH's $300,000 term policy is only $50ish, but he signed up for it when he was young.
Good luck!
We have about 750,000 on each of us, which is about 8.5 times each of our incomes (we make approximately the same, obviously). Our only debt is our mortgage (which is about $150,000), but we wanted to make sure that if something happened to one of us, the surviving spouse could take any time off if needed to help kids adjust, pay for additional help around the house, college, and invest any extra.
Please, please, please make sure you get multiple quotes!! We ended up finding the cheapest price through zander.com (they get quotes from multiple insurance companies, and had the cheapest price for our ages, medical histories, etc.).
do you know some life insurance companies?
If you want an easier way to compare life insurance rates I?d suggest you visit aggregator websites like AccuQuote.com. They represent hundreds of life insurance companies and you can instantly get free life insurance quotes. This will give you better opportunity to compare life insurance rates, products and the financial rating of each company. You can also call up their customer service for professional guidance in helping you choose the right policy.
Denise Mancini
Disclaimer: I work for AccuQuote and this is my personal opinion.