Seperate but still financial - Life Insu

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iVillage Member
Registered: 03-19-2003
Seperate but still financial - Life Insu
17
Fri, 09-19-2008 - 8:42am

Do you have Life Insurance or is it one of those things you keep putting off?


It basically hit home with me a couple days ago.

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iVillage Member
Registered: 07-26-1999
Fri, 09-19-2008 - 10:41pm

Hi Becky,

I used to be licensed to sell life insurance...but I was never good at the closing part of a sale (so I didn't actually sell many policies)...

I have a private policy on myself and my mum is the beneficiary, my rationale being I owe her $ and if I die before she does I want there to be money for her retirement/old age.

Ten year term insurance is generally the cheapest in terms of premiums. That is what I got for myself. There also used to be a type of policy that was joint on a married couple and it had the option of payout on first to die or last to die. First to die would cover surviving spouse expenses, etc; last to die would be on death of second spouse and would cover estate taxes, etc.

I think it would be really important for you to have coverage at least on your dh. You can use life insurance to pay whatever you want, so you don't need a special kind to pay off the house, as you mentioned. You could do that with a large term policy, and that is what we were trained to recommend. You have a large policy and in the event of death of the insured, the surviving spouse can pay off the mortgage and other debts, and then there is a secure home for the surviving family. By paying off the mortgage with the life insurance, the $$ needed annually to maintain the standard of living for the surviving family is greatly reduced because the mortgage and debt payments are eliminated. I hope that info makes sense and helps you out.

I would highly recommend you ask around for an insurance representative you can trust to be honest, knowledgeable and not push you for the sale. Perhaps in your church you could get a recommendation? You can also get a lot of info on the company websites too.

rebecca

iVillage Member
Registered: 04-12-2007
Sat, 09-20-2008 - 12:56pm

I personally am a firm believer in listening to your intuition.

iVillage Member
Registered: 08-22-2008
Sat, 09-20-2008 - 4:33pm
We have about $600K on DH, $500K on me.
iVillage Member
Registered: 03-26-2006
Thu, 09-25-2008 - 1:56am

Hi all,


I used to post on this board, but haven't for a long time - this year has been a real life changer for me.

iVillage Member
Registered: 08-22-2008
Thu, 09-25-2008 - 8:37am

Chloe, I am so sorry.

iVillage Member
Registered: 01-25-2006
Thu, 09-25-2008 - 11:02am

Chloe,


I'm so terribly sorry for your loss.

iVillage Member
Registered: 01-23-2007
Thu, 09-25-2008 - 6:16pm

We have term life insurance just in case either one of us would die while the kids are in school/college and/or we still have a mortgage. Once those things are paid for, we won't have need for it any longer, assuming we've put money aside for cremation (...and retirement, of course!).

Dee


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