Why don't I have Life Insurance?

**photo** · 08-13-2011, 07:21 PM

Life insurance is something you buy voluntarily. Why did you choose to cover your children but not yourself? The purpose is to provide money for your family when you die. If your husband is the breadwinner, then his death would obviously be financially devastating for your family, so it makes sense that he would be covered. Although a child's death would be a tragedy and you'd have funeral costs, the child is not financially contributing to your household, so I'm not sure why you chose to have life insurance for your children but not you (if you died while your children are young, your husband would have daycare expenses.)

**jpg7n16** · 08-13-2011, 09:20 PM

Just two questions for you:

1. What do you expect your husband to do if something happens to you? (be specific if possible)

Thoughts to get you started:

Childcare
Take a month off from work to grieve
Pay for your funeral (and family who have to fly in - hotels and airfare)
Redo his will
Refi the house into his name only
etc...

Please answer #1 first, then read #2

2. How will he pay for each item on your list?

If you have an answer for every item on the list, maybe you don't need it. But if you don't, it'd prob help him out.

**am_vanquish** · 08-14-2011, 05:22 AM

I'll tackle the "motivation" part with a couple stories from Dave Ramsey callers.

The first one was a 43-year-old wife & mother of 2. Her husband had just been diagnosed with a terminal illness and had less than 1 year to live. They had no life insurance coverage, so she was asking Dave whether or not to sell the house to cover expenses for the children. It was heart-wrenching to hear her break down & cry over the strain in their marriage. The husband wanted to live out his final dies in his home with his family in peace. The wife knew that something had to be done to support the children after he passed. An all-around horrible situation (wife had no real career prospects, kids had little/no college savings, etc), but the lack of life insurance coverage just compounded the problem.

The second caller (about 10 minutes later on the same show) was a 29-year-old woman with a 2-year-old baby. When she was pregnant with her child, her husband left one day for work and never came home. He was killed in a freak equipment accident on the job. He had enough life insurance coverage for the wife to pay off the mortgage, stay home with the new baby for a year, go back to school for 2 years to become a teacher. Although you could hear the pain in her voice, there was also a sense of calm comfort present. You could tell there was a whole new layer of love/respect for her husband that she had the peace of mind to make it through the horrible situations and still have so much comfort to lean on.

I heard both of these stories while driving home from a 2-week business trip. I was homesick & hadn't seen my wife during that time, and the stories really got to me. The next weekend, we bought 10 years worth of salary in term life insurance from Zander Insurance (endorsed by Dave Ramsey - it works like travelocity - they use Accuquote to give you quotes from several insurance companies, and then you can contact whichever you want directly). For 10 years of my salary we pay $15 per month (enough to cover the mortgage, plus several years of living expenses).

**ukgaz** · 08-14-2011, 10:12 AM

My wife and I have just signed up for 30 year life term insurance. We have our medical tomorrow. We have a new home with a 30 year mortgage for 180k. We signed up for 100K insurance each plus have 50k insurance each through our work. No kids but they will be coming soon. We in early 30's.

For me it was important to know that if something happens to me my wife can keep the house and also vice versa. You have to take care of each other when you are alive and also when one is dead. I hope that the cost of the insurance is a waste of money for 30 years. Because if it is then it means we both still alive

**krantcents** · 08-14-2011, 12:51 PM

If I were your husband I would be on top of that fast! I have 10 year term insurance and I used selectquote.com. Good luck.

**Robert742** · 08-15-2011, 09:52 AM

It's easy to procrastinate on purchasing life insurance. With 6 kids, I'm sure you are very busy. Here are some resources for you:

This calculator can help you determine how much coverage you need. There are a lot of these type of calculators available at personal finance websites:

Yahoo! Personal Finance: Calculators,Money Advice,Guides,& More

You can check term life insurance rates here to get an idea of the price. Keep in mind, you have to qualify for the rate, and something like a parent dying relatively young from a health condition, can disqualify you for the lowest price. An experienced independent life insurance agent can find you low rates with the best life insurance company for you.

Term4Sale.com - Term life insurance comparisons (over 100 companies)

I think life insurance is best purchased through independent agents specializing in life insurance. Your auto or home insurance agent may sell life insurance, but they probably represent only one or two companies, and don't know a lot about life insurance or the market.

Here is an online agency you can contact for a term life insurance quote. Be careful with other websites about life insurance. If you fill out information on a website which will have agents contact you, you may be overwhelmed with agents calling you, with many of them trying to sell you an expensive term life policy not requiring a medical exam, or pushing to meet with you in person. Also, many agents will want to sell you permanent life insurance, which has its place, depending on your situation, financial discipline, and needs, A good agent will determine your needs & recommend what is best for you and your budget. Beware any agent trying to sell you permanent life insurance as an investment or retirement savings.

Best Term Life Insurance Easy Free Accurate Quotes & Rates Online | Matrix Direct

Hopefully, I'm making it easier for you to stop procrastinating. Now, it's up to you move forward with getting life insurance.

**SarahJ** · 08-16-2011, 03:32 PM

Wow, thanks for the motivation.. I got Life insurance yesterday, more than enough for everything to be taken care of in the event of my death. My kids are covered through my husbands insurance, and like I said I was pregnant and didn't want to do the physical. But all is well now. I feel a lot better. think...

**SarahJ** · 08-16-2011, 03:34 PM

Oh, and thank you Robert, you were very helpful

**SarahJ** · 08-16-2011, 03:38 PM

Thanks everyone for your feedback..

**MonkeyMama** · 08-16-2011, 04:06 PM

That's great that you got coverage!

I just had to add that I was hesitant to get life insurance coverage while pregnant, but actually qualified for the best medical rating (which means cheapest life insurance rates). I know the point is moot for OP, but pregnancy is not a good reason to put off getting life insurance! (Correct me if I am wrong - but even if your health is terrible during pregnancy - can't you just replace the policy when your health returns to normal? Do they ding you for life for gestational medical conditions?). Anyway, none of this matters to SarahJ who is no longer pregnant, but I do encourage anyone on the fence and making excuses to just go out and get some insurance! I was personally very pregnant and had no extreme medical conditions, but I know all my numbers were worse than usual (sugar levels, blood pressure, was taking iron for anemia, etc.). Apparently my "worse than usual" = "better than average."

**Robert742** · 08-16-2011, 05:28 PM

You're welcome, Sarah. I'm glad you applied for life insurance.

I agree with MonkeyMama, don't let pregnancy stop you from getting life insurance when you need it. You can always shop again later, to try to get more coverage or a better price.

Even if you are terminally ill, you can get some life insurance to cover final expenses, which will get you a better return than banking the premium.

But, please folks, if your family needs you to have life insurance, don't wait until you have almost no options.

**DeniseN** · 08-17-2011, 02:15 AM

Many stay-at-home-moms think they don’t need life insurance because they are not earning a salary, but that just isn’t entirely true. If you were to die your 6 children would be left without proper care, your husband would need to hire a cook, a nanny, use day care services, etc. All of these tasks can be very costly. Salary.com estimates the services a SAHM provides to be valued at $140,000 per annum!

I would recommend you calculate your coverage. Include any debts you and your husband are still paying off like a mortgage. This way, if you die, your husband can cut down his working hours to spend more time with the kids, should he feel the need to do so. Visit aggregator life insurance websites that offer free term life insurance quotes. Compare life insurance rates and choose the most affordable term life insurance policy that suits your needs. It’s easy and convenient when you do it online and you’ll also find some great discounts. Please don’t delay any longer!

Denise
Disclaimer: I work for an insurance company and this is my personal opinion.

**danieldroga** · 08-17-2011, 02:19 AM

It is good that you have finally got your life insurance, financial assistance are helpful especially when there is an immediate need for it.

Why don't I have Life Insurance?