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Do you have life insurance?

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  • Do you have life insurance?

    I have some life insurance through my company, but it isn't a whole lot. because of all our current debt, I'm thinking that it makes sense to get some more even though it would be an added cost to our budget. This way if something happens, that debt would be taken care of and wouldn't cause a lot of stress. I don't like adding expenses since I'm in the process of trying to cut them down as much as possible, but I think it might make sense in this situation.

    Do you have life insurance? If you do, why do you have it and how did you decide the amount to get?

  • #2
    You absolutely should have life insurance of your own. What the company provides should just be extra coverage, not your primary coverage, because that goes away if you change jobs. Term life is dirt cheap. Go to selectquote.com or accuquote.com and get some quotes.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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    • #3
      I'm in sort of in the same but opposite predicament. Purchased Term insurance for both myself and wife when our kids were born and now looking at canceling the policy. I recently retired with a retirement plan that goes to my spouse when I pass away plus a sizable savings.

      I'm paying $100. a month for both of us but feel like I no longer need it. To answer your question, if you have kids or a house payment, you need it.

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      • #4
        I have the same question. I'm 24 and I don't worry about my wife that much because she has a degree, a starting job right now, and she has no debt at all. I'd say my asset is equal to my debts if something happened to me right now.

        I'm planning to buy one probably 4-5 years now when we are ready to have kids. Also my single mom is getting old, she has a job right now but it goes to all her bills. She has no assets at all or any savings. I know I need to support her in the future.

        I got a quote for $9.00/month for $100,000 term life insurance 10 years. Should I get a life insurance now or maybe after 4-5 years when we are ready for kids?

        Thank you.

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        • #5
          I am 31 and have life insurance that my parents bought that I now pa on. My wife is 25 almost 26. What term (10,20,30) of life insurance should we get for her?

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          • #6
            It's a good idea to get life insurance of your own, especially when you're young and can lock in good rates. There are a number of online calculators that can help you figure out the right amount of life insurance for your situation.

            Both my wife and I have life insurance. It has gotten more expensive for me since turning 65 last year, but it is important for me to have coverage for final expenses, debts (I still have a mortgage), and continued support of my spouse.

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            • #7
              Death is sortof a permanent retirement so I look at it from that point of view to answer the question of how much life insurance do I need. If I were to retire today, a quick and dirty estimate at what I would need in the bank is about $3.9M.

              $3.3M for annual expenses ad infinitum ($100,000 x 33 which equates to an annual withdrawal rate of 3%, which is conservative but safe)

              Now I add in the other stuff that my family will need during my "retirement":

              $100,000 college fund
              $40,000 new car fund
              $20,000 wedding fund
              $450,000 pay off house fund

              $3.9M total

              Subtract what I have saved up already, and that is how much life insurance I need. It's a big number. As my retirement savings grows, my life insurance can decrease. As I get older, my annual expense multiplier can be reduced to say 25 instead of 33 and I won't need such a huge nest egg. As I pay things off like college, cars, weddings and houses, I won't need as much. The plan right now is to have enough saved up by age 62 to not need life insurance. It gets really expensive as you get older.

              Tom

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              • #8
                Nope. I don't really have any dependents. My gf will get everything, if I die. It's not a lot, but she can survive.

                $100K in coverage is too little to matter if I die. $500K in coverage will cost me $40/month, which is too much IMO. More than my cell phone bill...

                Also, if I die, I want my body to be disposed of, in the cheapest possible way. I'm pretty sure it can be donated for free (maybe even sold for a small amount?).
                Last edited by cardtrick; 01-13-2015, 03:25 PM.

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                • #9
                  Originally posted by Leo View Post
                  Should I get a life insurance now or maybe after 4-5 years when we are ready for kids?
                  You should get life insurance when you need it. That is when one or more people are financially dependent on you and would suffer if you were to die prematurely. Right now, if your wife doesn't need your income, there's no need for you to have insurance. Once you have kids, insurance will probably be a good idea. If you were to die, insurance could fund daycare expenses so your wife could continue to work, it could fund their college costs, it could pay off the mortgage, etc.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                  • #10
                    Term Life Insurance

                    I would get enough term life insurance to cover the debt you have + funeral expenses. If you have children, money to help them financially until the ages of 18 would be good too. That way the remaining parent won't struggle to keep the kids' standard of living from changing too much.
                    Last edited by jeffrey; 05-04-2015, 01:59 PM. Reason: posting rules

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                    • #11
                      I'm not a big fan of life insurance. All I've ever carried is enough to get me planted.

                      Probably not a bad idea when young and starting a family to provide a little security, but as you get older you should accumulate wealth and your net worth is the insurance.

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                      • #12
                        We have $1M each in three different policies ending at different times. Have added to it as our lives have changed. Policies will end as our lives change. Getting kids through college being the major one coming up. After that, we won't have any and will just depend on savings.

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                        • #13
                          Originally posted by Fishindude77 View Post
                          I'm not a big fan of life insurance. All I've ever carried is enough to get me planted.
                          That's fine if nobody is financially dependent on your income.

                          Probably not a bad idea when young and starting a family to provide a little security, but as you get older you should accumulate wealth and your net worth is the insurance.
                          I agree that the goal should be to reach a point where you don't need insurance. That's one reason why 99.99% of people have no need for whole life insurance. Term is far cheaper and only lasts for the time you need to have it.
                          Steve

                          * Despite the high cost of living, it remains very popular.
                          * Why should I pay for my daughter's education when she already knows everything?
                          * There are no shortcuts to anywhere worth going.

                          Comment


                          • #14
                            Originally posted by Leo View Post
                            I have the same question. I'm 24 and I don't worry about my wife that much because she has a degree, a starting job right now, and she has no debt at all. I'd say my asset is equal to my debts if something happened to me right now.

                            I'm planning to buy one probably 4-5 years now when we are ready to have kids. Also my single mom is getting old, she has a job right now but it goes to all her bills. She has no assets at all or any savings. I know I need to support her in the future.

                            I got a quote for $9.00/month for $100,000 term life insurance 10 years. Should I get a life insurance now or maybe after 4-5 years when we are ready for kids?

                            Thank you.
                            You should get one right now but make sure the insurance company is reputable and has been around for a very long time. Check the Better Business Bureau as to their rating. Why should you get it now? Because your younger and healthier. As you grow older your rate will change and if you get sick or something forget it they will charge even more or not just qualify you at all.So yes get one now and not 5 years down the road. I would even get $200,000 coverage at that price BUT do not limit them for covering you only for 10 years get the one where it does not have that limit. Yes you lock in those rates for 10 years but what happens after 10 years like i say is there a clause somewhere hidden in the policy that would give them the right Not to renew your coverage after 10 years says if you got sick with God forbid Cancer or any other serious condition??? (I am not trying to be morbid here but that is a possibility or a fact of life that the majority of us as we age will get sick with something) Oh you can also make both your wife and your mom the beneficiaries say 50/50 if you want or whatever percentage you want as long as the wife i believe will get 50 percent as required by law in some states. You can always change the beneficiaries later as well later on.
                            Last edited by SPECS137; 05-17-2015, 02:42 AM.

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                            • #15
                              Yes, for everyone in our family. Wife and I have 30 year policies that if we outlive them, we get all of our premiums back in a lump sum. The kids have 50k each that they can extend themselves at 18 for the same premium indefinitely.
                              Gunga galunga...gunga -- gunga galunga.

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