Life Insurance - How about I just never die?

[Beryl]

ok - so I'm sorting through today's mail and there's a life insurance offer. I'm awash in a sudden feeling of inadequacy. We don't have enough (any? I don't even know!) and I don't want to be an idiot and buy crap. What have folks out there done? Any good resources to demystify the options?

[YourMom]

We made an appointment with a NY Life rep and she's been really good about going through things with us. (Slowly and multiple times if necessary LOL) She had a neato little booklet that had us analyze what we would need if one or both of us were to die, so we were able to figure out what level of coverage would be adequate. Then we applied and had a nurse come to our house to check our blood/urine/weight/lifestyle (questionnaire on that last bit) and they issued the policies.

Right now we have term life insurance, which is cheaper, but goes up in price as you get older. (The "term" part means that it only covers you for the time period in which you are insured and they can choose to not cover you. Whole life means it's good forever aslong as you pay your premiums. It's more expensive to start with, but the premium price is locked in and doesn't increase.)

Both of us had some through DH's work, and I had some that my grandfather had set up for me long ago, but it was totally inadequate.

[Jo]

I just don't plan on dying!LOL

Dave and really need to get a move on. We just keep putting it off. I talked to USAA in the past but never did anything then either. I have no idea how to figure all of this out. I just ask my dad when confused since he seems to be the fount of knowledge on issues like these.

[Jenny]

We bought a Universal Life Policy about seven years ago and pay $138 into it. It is basically in mutual funds and when we hit 40 we stop paying into it. We can use the money we 'made' on the investment towards our kids education, retirement, etc.

Some companies do not like to use it, but I find that these are usually independant insurance companies (such as Primerica??). We went through a Life insurance rep at our work.

[Polly]

CJ and I got him life insurance throught USAA. Note I said HIM. Why? Our financial adviser said that because I'm a stay at mom aka employed without a paycheck, that if I die, all CJ has to do is get Elizabeth some daycare. Apparently my everyday living expenses like food, clothes, medical, etc. balance this out. However, if I'm disabled (which is more likely at my age) I would have medical expenses which may or may not include day care for me. :D So we are looking in to disability insurance for me and additional disability for CJ since his job doesn't provide him with enough. (Again, according to our financial guru. He suggests, MetLife or John Hancock)

We have been putting off doing something about this since September. Right around the time we put our will together and realized that yes, indeed, we are grownups. Sigh. So, CJ's taking a personal day on Friday to be able to get on the phone with me and the insurance gnomes.

Good Luck!

Polly

[MathSpeak]

I have a policy through my job and one through NY life. An old classmate worked for NY Life and I bought a policy when AJ was an infant. I think I got 7X my annual salary. It was recommended that I do 7-10. And I bought 2 additional policies... one for my daughter and one for my brother.

[Beka]

Like Jo i plan on living forever :D or at least i best do until we get sorted- our only real financial planning has been arranging a guardian for our 4 children who is financially capable of raising them all and putting them all through university if we both keel over (my sister- she doesn't "do" talking about death but has agreed "should you ever run off and join the circus i'll have them"- which is her way of saying should i meet my grizzly end she wants the small bald people) we also have cover which pays off all our loans in the event of death but nothing that gives a cash pay out so if we didn't die together we'd be looking at remaining partner having to continue working right now, again possible with the assistance of my parents.

[elin]

Even if you are a SAHM, having life insurance can be a boon to DH. One of my good friends died of cancer last summer, leaving behind her three kids, ages 2, 4, 9. Although she was a SAHM, her life insurance policy has enabled her DH to work part time for the next few years, so he can be more available to the kids, who really really really need them. After her death, we got life insurance on both of us.

[Beryl]

Thanks, everyone, for the replies.

I think I agree with Elin that it's important to have life insurance for both of us. If something happened to me, I'd like to believe it'd take more than just the cash to pay for daycare to replace me. (Maybe that's wishful thinking. don't burst my bubble, please!) But the disability thing makes sense to. So much to buy!

And Beka hits on another anxiety: guardianship. That should probably be another thread. How on earth do you decide? has anyone picked someone who was not blood kin? It's a bit of a dilemma.

[Desirae]

We BOTh have life insurance. ;) There was just someone at a MOPs meeting ( from American Family Insurance) that said that SAHMs should actually have MORe insurance! Think of all the different jobs we do. For him to continue to work AND have everyone taken care of would be very expensive. I believe we both have $150,000 Term... we need to change that.;)

[YourMom]

Des - that's why we got it on me too. :) Both of us decided we'd want enough that the girls could have a nanny until school-age. Charles would NEED a cleaning lady too. ;)