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  • Do you have life insurance?

    Someone I know recently lost his father. I don't know how old the father was but his wife is 55 so I'm guessing he was relatively young. This person has set up a GoFundMe to raise money to help his mom who now has to move forward without her husband's income. Not to be crass, but isn't that exactly what life insurance is for? Term life is dirt cheap and eliminates so much hardship for the survivors. A good term policy would have made an online donation appeal unnecessary. It is just so sad when someone dies and the surviving spouse is financially devastated because they didn't bother to spend a few dollars per month for insurance.

    So do you have life insurance?

    I have $1.5 million on me and $125,000 on my wife. They are both term policies and will expire around the time we turn 70. I see no reason that either of us would need a big insurance payout upon the other's death after that as our savings will be sufficient to live on for the remainder of life.
    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.

  • #2
    I have 3 term policies outside of work that are laddered out until I turn 78. They are $500k each. Thank goodness I got them all right before my heart attack. I laddered them because as I save more I need less life insurance. I thought that was plenty until I ran the numbers for when I die. My pension goes down to 55% and her SS spousal benefit will be reduced to 50% of mine. So a 50% cut in income. Glad I have a lot of term insurance out to 78.

    I also have another $1.5M through work. If I die when that is in effect, my wife will have it made.

    I have $400k on my wife, but don't need it. It's only $21 a month, so I keep it.

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    • #3
      I'm in the process right now of evaluating our life insurance options. I have $400k on myself & $100k on my wife through the military SGLI, but I know that's not sufficient for either of us. I want to get her up to about $400k, and me up toward $1M total, but a confluence of factors (mostly recent medical issues for DW, and being a military aviator for myself) is making it rather expensive or impossible to get right now. I'm still getting quotes, but the best I've found for me right now is tentatively $500k for $45/mo (as high as $90/mo), and I've yet to find anyone willing to insure DW once they see her history.

      ::sigh:: The only good news is that we have a decent net worth already, so neither of us would be devastated financially if one of us were to die... But there would definitely be some challenge.
      "Praestantia per minutus" ... "Acta non verba"

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      • #4
        3x salary through work
        250k term life (20 year policy expires in 15 years)

        Will my wife have full access to my 401k funds should I pass before a certain age?

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        • #5
          Originally posted by Jluke View Post
          3x salary through work
          250k term life (20 year policy expires in 15 years)

          Will my wife have full access to my 401k funds should I pass before a certain age?
          All retirement funds (401k or IRA) to which she is a beneficiary can be withdrawn with no penalty, She'd only owe taxes as income on the amounts withdrawn.
          "Praestantia per minutus" ... "Acta non verba"

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          • #6
            I have a policy that my employer provides.
            If I die my beneficiary gets $50,000.
            I don't have any other policies in place.
            My assets are enough that if something should happen to me, those left behind could keep paying the bills.
            Brian

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            • #7
              We struggled with this decision a few years ago. We finally phased out the life insurance policy DH had outside of his work coverage a couple of years ago. He still has coverage through his employer, but when he retires (hopefully in a few months) he will not have any.

              I have a policy that will end in about 3 years. Another policy from a former employer will reduce down to 25% of its current coverage in about 4 years (and no more premiums 2 years from now).

              We took a look at the income we would have if one or the other of us predeceased the other (assuming the surviving partner didn't have a job). I identified a shortfall for DH if I died before he started collecting SS. At this point (DH being so close to claiming SS) the retirement savings could pick up the slack, but my life ins is cheap so I don't plan to cancel either policy early.

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              • #8
                Oh, in addition to the policy I pay for, I have a policy from work for 2X income so about another $460,000.

                I never count the work policy since as a job perk, it could disappear at any time. Plus if I leave the job, it goes away.
                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


                • #9
                  We don't have any life insurance. We did have it before we had enough savings to cover us.

                  I think GoFundMe is an overused money grab.

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                  • #10
                    Originally posted by moneybags View Post
                    We don't have any life insurance. We did have it before we had enough savings to cover us.
                    Certainly once you have sufficient savings, life insurance becomes unnecessary (which is one of many reasons that whole life is a waste).
                    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


                    • #11
                      30 year 500k each on myself and wife. If we outlive the policy we get all of our payments back in a lump sum (59/60 years old when that happens)
                      Gunga galunga...gunga -- gunga galunga.

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                      • #12
                        Yes. My DH has 2x his salary through work and we have 2 laddered term policies on him until the age of 70.

                        I have one term policy on me until the age of 80, it's just a little policy but I got it mostly to make sure my kids inherit something. I know most people think that's silly but in case I have to go in a nursing home and that drains all I save, they'll get something.




                        <------Hey is this new the FB and Twitter links??

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                        • #13
                          Originally posted by Thrif-t View Post
                          <------Hey is this new the FB and Twitter links??
                          Apparently. I noticed it today, too.
                          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
                            Bought 20 year term life policies for both wife and I when we were 35, 500K on her and 1M on me. We both also have whatever our employers offer for free, think its likely 1-2x salary for each of us.

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                            • #15
                              Yes, we have life insurance. DH has $400K SGLI, I have the $100K policy through them and another $250K term policy. So we are about equal. But we also have significant investments that a Go Fund Me would not be needed. And there would be a pension for me if he would die first. I'm sure it's less than what he will get.
                              My other blog is Your Organized Friend.

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