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Thread: Life Insurance

  1. #1
    Full Sponsor GiftOfFlavor's Avatar
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    Life Insurance

    I have a lot of life insurance (mostly for my business so that if I die the bills will be covered until my DH can sell the practice). And a bunch for DH too since I am the primary breadwinner (enough to pay off the house and make sure he's comfortable.)

    My DH has a crappy 50k free policy through his work and none else. We want to get some more for him but I'm unsure of how much to get...

    What's a good amount for a life ins policy to cover expenses and stuff? I honestly don't know how much a funeral/cremation/etc costs... He's very healthy so the premium isn't going to be too much...

  2. #2
    Moderator jen's Avatar
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    We have enough on each of us to pay off all debts including home, college for DD, and some time off work to heal.

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    Wishes reality was like comic books tpatt100's Avatar
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    From what I have read over the years it's based on expected funeral expenses and "X" number of years of financial support due to loss of income. Typically if you have children under 18 that is when the need goes up significantly but as you get older you can decrease it. Since you are the primary income earner I would guess the 50K would be plenty.
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    HI! Wise Old Goat's Avatar
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    We were told that too - that as you get older and your debt goes down you can reduce your insurance. It was explained to us that insurance shouldn't be used as an inheritance (there are better ways to do that), but rather as a means to pay off debt only.

    When we got our life insurance we had a young son so we got a lot on dh (who was the only income earner at the time) to cover mortgage and my expenses so I could continue on staying home with ds until he was older. We got enough on me to cover childcare costs. We haven't dropped it down yet but may when we pay the mortgage off in a few years.

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    argh Nansel's Avatar
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    Life Insurance

    We had a whole bunch when Dd was little and we had a new mortgage and a car loan and some consumer debt. We used to joke that we were more valuable to each other dead than alive.

    Now dd's on her own and we only have some mortgage debt. So we only have my work coverage of $50k and Dh has enough to pay what we have left on the mortgage plus a bit more to get me going on my own.

    Funeral costs vary hugely on what you want, like weddings. My dad's funeral (10 years ago this week) IIRC cost about $6k for cremation and a small service at the funeral home.

  6. #6
    Moderator purplekitty's Avatar
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    We no longer have life insurance because the kids are gone and the only debt we have is our mortgage. We'd each inherit enough from each other to pay that off if we wanted to, and we have our retirement/pension plans, so there's no need to have life insurance at this point in our lives.

    When the kids were little, we both had life insurance through our employers to cover our debt, kid expenses, etc.

  7. #7
    Where's the horse? Nikki's Avatar
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    Chris & I each have something like 3xs our salaries through work.

    We also have an extra policy on Chris that we got when the kids were little. We would have got one on me but I was declined due to my previous bout with cancer.

    Chris' extra policy is a,term policy and costs us $98 per month. But in 2021 the premium increases to something like $1400 a month. :faint

    It will be cancelled at that time without a doubt.

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  8. #8
    No groundhogs; just prairie dogs RobinAnn's Avatar
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    To cover final expenses, $50K is plenty. It's usually recommended to have 10 - 12x a person's annual salary if their income is depended upon. That amount, if invested, should throw off enough income to replace their salary.
    Robin


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    Moderator Shaena's Avatar
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    My mother was a life insurance agent, and she did not believe in selling large policies to people unless they had young or dependent children, or spouses who could not take on any leftover debt. It was always better to invest your money in other ways.

  10. #10
    Full Sponsor GiftOfFlavor's Avatar
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    We got a quote for $300/year for a $250,000 policy. It wouldn't change until DH is 67, and at that point we'd just cancel coz we'll have other assets. So for 30 years we'd do $300/year. That seems reasonable and it'd be enough to pay off what we owe on the house.

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