Comments on: Buying Life Insurance

By: LAL

LAL — Fri, 04 Dec 2009 22:46:19 +0000

I don’t know the answer to the first question. I think he would, he isn’t the type to be a SAHP. And I can say this frankly, my MIL would likely move in and take care of our children period. She would be living with my DH until he remarries and do everything, cook, clean, etc . My mom would likely help for a bit afterwards and would likely offer any financial help.

Second question, if we were to both die? Our children would be very well prepared. My mom would leave a substantial inheritance to any kids and my MIL would as well. Only grandchild on either side. With what we have currently and plan on buying, we’d leave probably $2M or more behind. I think that’s enough.

By: BW

BW — Fri, 04 Dec 2009 19:41:40 +0000

Two things to think about:

1. Would your husband REALLY want to go back to work after losing his wife and after his children lost their mother?
2. Is the combined value of your policies enough for the person who would raise you children if you were to BOTH die?

By: LAL

LAL — Fri, 04 Dec 2009 17:29:14 +0000

I’m getting DH’s by the time the baby comes and mine by the end of 2010, before I get pregnant again!

By: Kristy

Kristy — Fri, 04 Dec 2009 16:27:32 +0000

That’s what I mean about waiting…if you wait 10 years your yearly premium is going to go up drastically. I think once you hit 40 it increases significantly. That’s why I think you should just do 25 or 30 years at whatever you feel is comfortable now. You may not want to pay the premium in 10 years.

By: LAL

LAL — Thu, 03 Dec 2009 16:15:23 +0000

Evolution of Wealth, no, not a burden. But I think of it as a tool for wealth building. But I know it’s just easier to wait a bit until I lose some weight than to deal with it right now. Plus it turns out I have more on my plate than I expected.

By: Evolution Of Wealth

Evolution Of Wealth — Wed, 02 Dec 2009 15:33:24 +0000

I just wanted to give you a heads up. A top-rated insurance company is going to understand that you are pregnant. I often help pregnant women get coverage and their underwriting is not affected by the pregnancy. Your underwriting will be slightly different but you will not be penalized for being pregnant. You always have the right to request new underwriting if you feel your health has gotten better.
Also, I just wanted to add, that life insurance isn’t about “managing” when someone dies. It is about helping you and giving you and your loved ones the freedom and flexibility to deal with a traumatic event any way you choose over as long a time as you need. It seems to me that you might be looking at life insurance as a burden?

By: LAL

LAL — Wed, 02 Dec 2009 02:05:54 +0000

JoeP, probably should look into meeting with a CFP. But I think I just want a cheap and simple term policy.

Kristy I wasn’t thinking of putting it off more than 6 months. But enough so I am not obese and paying more.

Also by getting less now for a longer term, i think if we have more than 2 kids I can always add one $500k for 10 years or something. Until we are more financially stable.

By: Kristy

Kristy — Wed, 02 Dec 2009 01:06:54 +0000

The reason to lock in now (while you are young) is that your rate will be low. If you upgrade to a higher amount later after you have another baby or two more, then you rate will be higher because you will be older.

When we did ours I was pregnant with our first child and only 27. I bought a 30 year term for a $1m and I think I pay around $275 a year.

By: JoeP

JoeP — Tue, 01 Dec 2009 21:19:19 +0000

Then find one that is not tied to any specific insurance company. They do exist, and there is a huge difference between someone trying to sell their insurance product, and someone who understands your whole financial picture/goals and simply tells you what kind you need and how much. You can then shop on your own. Big difference.

By: LAL

LAL — Tue, 01 Dec 2009 17:13:11 +0000

Kristy, not sure if I’m going back to work yet. Depends on a lot of things including moving and job opportunities. I also am not sure how many kids we’re having, we’re definitely having 2, maybe more. I was thinking $500k to start on me and then adding more, but I can’t seem to get a decent quote while fat and pregnant.

Well Heeled, I know we want more than 1 kid, but not sure how many more. Not sure if we’ll be done with college in 25 years, but we’ll likely be on the tail end. My hope is to be financiall secure enough to not need life insurance.

Joe, I hesitate because I hate talking to financial advisors about insurance. It always feels like sales pitch.