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Old 10-22-2006, 09:08 PM
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greedy4chips greedy4chips is offline
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Default Re: Life Insurance Question

Snoopy,

How do you figure $100k will take you a long way if your DH dies? You won't have any income unless you work and $100k won't get you that far compared to the $250k policy on you.

Personally I think $250k is the minimum I would have on either spouse. I want the house paid for and all debts cleared up (we don't have any) if either of us dies and hopefully have 3-5 years living expenses left ($2k per month minimum would suffice $3k would be spectacular).

Rduell
I would cashout the whole life, as long as you are insurable, and purchase term insurance. Whole life and universal life are just a waste of money in many people's opinion (not the insurance salesman's opinion).

Just figure out what $35 per month would grow to if invested since the date your hubby purchased that policy and you will be sick.


$35 per month at 8% for 30 years is $56,608
$35 per month at 8% for 45 years is $184,608
$35 per month at 8% for 60 years is $622,598

at 10%
30 years is $87,800
45 years is $405,000
60 years it will be 1.6 million!!! Not a bad plan for your kids!

I used the calculator here http://www.planningtips.com/cgi-bin/savings.pl

Remember whole life is paid for your whole life so the 60 year scenario which does seem ridiculous may actually come true.

BTW $35 per month in a piggy bank for 60 years is $25,200
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