Insurance Questions

[rizzmo]

My wife and I are trying to make a decision on what type of life insurance we should purchase, and were wondering if we could get some suggestions. We added up the amount needed to pay off our mortgage (~100k), to pay off my wife’s student loans (~80k), and the amount needed for my wife to finish Vet school (~100k), and burial costs (~20k) and came up with $300,000. We were looking at a 30yr term life policy. Our house will be paid off in 10 years, my wife’s schooling in about 15 years and I figure the extra 15 years allows us to keep a low premium and gives room for life’s unexpected expenses. We do not plan on obtaining any debt aside from this as we will pay cash for these purchases, and both of us have decided that we do not want children. That being said, my wife spoke with the insurance person and now wants to consider whole life insurance. She is worried that if we get a 30 year term policy and then decided we need coverage for further years that we will be unable to get coverage. In the literature I have read related to personal finance, the vast majority of it claims life insurance other than term is waste of money. Personally, I see no need for life insurance long term once our debts are satisfied. Any advice here?

[Goldy1]

yes, all the finance books I read say just buy term. I got quotes from AAA and ING which I recomend doing)ING was cheaper for us). I had to have a medic come over my house and draw my blood etc and the same results were used for both companies.
Beare the questionaires are long and lengthy to complete.

I do not worry about having insurance beyond 40 years b/c by then I won't really NEED it or least as much.

[cptacek]

We have a $50,000 term and $50,000 whole life policy for DH, paying ~$85 a month for it. I am currently finishing paperwork to change that to a $300,000 30 year term life only. We will pay ~$50 for it.

He started the one he has now about 3 years ago, paying $85 a month, and the cash portion of it is currently $125

I mean, $35 (the difference between $85 and $50) * 36 (number of months he's been paying) = $1260! We would have had 10 times the money and 3 times the coverage!

I give him credit that he did start thinking about life insurance when most men don't (single, no kids and broke) but we just need to refine that good start

[Goldy1]

It is cheaper to buy when young and healthy. WE had it thru work but the coverage was group and not very much. I can get about triple for the same price ony m own being young and healthy.
I kinda hate paying for life insurance, but I figure I am paying for the piece of mind and it's not that expensive.
We bought it for years at work being married with no kids and I don't think we really really needed it too bad then, but now with a baby on the way, it does become a needed thing.