I'm envisioning the job I'm interviewing for on Friday as happening. I'm trying positive thinking or The Secret or something.
It also means I'm wrapping up all the loose ends while I have some spare time, like finally making the wedding photo album.
And then there's life insurance.
I really need to finally get this going. I quoted it out almost a year ago, back when I thought we needed a half mil a piece. (Gawd, have I procrastinated that long???) Now, I just need to get this done.
Again using Ing Reliastar through Zander, here's our rates for 250K
15 yr (me) $137/yr
30 yr (me) $207/yr
15 yr (him) $157/yr
30 yr (him) $257/yr
For 500K,
15 yr (me) $210/yr
30 yr (me) $350/yr
15 yr (him) $250/yr
30 yr (him) $450/yr
AHHHHH! WHAT DO I CHOOSE? How much do I need?
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15 comments:
We got a 20-yr term policy last year when I was pregnant -- $54/month total through Allstate for $500K (me, age 32, WAHM) and $750K (DH, age 36, - main breadwinner). When our policy is set to expire, we'll revisit our needs and consider a 5- or 10-yr rider. Right now we want to make sure our twins are covered until they are in college or at least capable of living on their own. (The savings from the 30-yr policy are going into their 529s.) We compared quotes from ING and our Allstate insurance agent, and I thought ING's practices were not as straightforward as Allstate's -- for example, ING's application included a direct billing form, and once the application was received, the policy was in effect. Also, they kept calling every few days, and the nurse sent to our home for the blood tests and exams was not very professional. With Allstate, we weren't charged until the policy was fully written and we had received an exact quote and accepted it.
If you're planning to adopt in the next 5 years, then a 30-yr term policy is a good idea. The adoption agency will want proof of life insurance. 30 years gets your kid through undergrad, maybe grad school. But you can also do 15 yr and get a rider later.
Good luck with your interview; I hope it goes well!
I can't remember--don't you have some sort of medical condition? If so, go for the 500k for 30 years; I say that only if you plan to have children, which you do. Otherwise, what's the point of life insurance at all. Ordinarily I'd tell you to wait until shortly before you apply to adopt or get pregnant, but, again, if your health might cause higher rates in the future, go for it now--it's less than $20 a month.
Life insurance is supposed to be for the purpose of covering your expenses after you die and taking care of loved ones.
You don't have children and both of you are able and working with large incomes (or earning potential in your case). There really is no need to buy any. You don't have to pay for children's college education after you die and neither of you would need the money to help pay the bills.
So really you aren't procrastinating. There's no need until you plan to have children.
Dog---
I've always heard that you should insure for 8-10 times your income. This will be most important if something happens to you or your husband once you have a house (and mortgage) and children. I think you should go with the higher amount--- the premium payment isn't much higher and its worth the piece of mind. My husband and I also used Zander Insurance for our quotes and policies, and had a great experience. Good luck!
On the one hand, I always thought life insurance is required with just enough to cover your spouse and esp if you have kids because they are dependents.
Since Senor Dog is not a dependent, and is doing fab right now (YAY!) maybe you don't need such high life insurance to cover him?
I think enough to cover your debts (mortgage usually), loans, and your funeral is usually the rule of thumb.
On the other hand, the younger you apply for life insurance for larger amounts, the better.
Or so I've always thought, because you're healthier and younger now, and the rates are cheaper than if you were to get the same plan at 40 or 50, and getting older by the day.
Personally.. I'd take the most you think you need to cover the above costs I mentioned (taxes, estate closing, funerals) and a little bit more just in case.. because you are planning on having a fam later, right?
I actually have a post in process on Term Life Insurance right now... As soon as I post it, I'll be sure to link you over to it...
Good questions - good thoughts!
I'm actually in the process of writing a post over on my blog talking about Term Life Insurance...
You made some good points that I'll be sure to address in the post!
At this moment in time I don't think its necessary you even have it - no children, no mortgage. I first got a policy (whole life-I didn't know better) when I bought my first condo to cover the mortgage amount. I then got a 30 year $1M policy when I was pregnant with my twins and cancelled my whole life policy. The 1M would cover my much larger house mortgage and then be the 10x my income that is suggested.
With that being said, a 30 year policy would be much cheaper now then getting a 15 year policy and then renewing in 15 years. Assuming you buy a house in the next year with a 30 year mortgage and possibly adopt/have kids you will need it for at least the 30 year term. I would get a 30 year policy but its not completely necessary right this second. That is totally up to you.
Since your husband is the only one with an income right now, you should at least start with a life and a disability policy on him. I don't think $500k is enough.
that looks very stressful....
I just have my life insurance through work. I get (well my beneficiary gets) 3x my salary. If my partner passes I got $20k....
i'm also not married (living with my partner)... so maybe it's less complicated if you don't have kids or a home and what not
@ Barb - I don't agree (in a nice way of course).
Disability may be a good idea. But they have considerable savings - no mortgage, no debt, and Dog, while unemployed at the moment is amply employable.
The insurance business has everyone convinced they need life ins - but if you don't have bills to pay of or a child to help care for, then what's the money for?
Really if either of them dropped dead tomorrow (I'm not missing ill on you Dog - promise) what would the other need money for? Well a funeral of course - but what else? If the answer is nothing then thats the answer to the life ins question.
actually i think disability insurance is more appropriate because it will partially cover your income in the event you cannot generate any for specified reasons.
if you just want to get the life insurance while you're young and rates are low, i'd go for the $500K 30year. however, i'm with some of the others in that you don't necessarily need it.
Ditto what r. May said.
Good luck dog!
Also realize that when it comes to the actual rates, you'll probably be paying a bit more. Usually Reliaquote quotes you the "premium" price and but you end up only qualifying for the "standard."
It all depends on what you want your insurance for. Mr. Goat and I have no children. However, should either of us die, we want the other to be able to take the time necessary to recover from it, and not to have to worry about money. Therefore, we are each insured for 10 times our combined annual pre-tax income. A plan to cover funeral expenses and a month off would be much cheaper. We get disability through our employers, so that was not a factor for us.
Looking ahead, at our ages (mid-thirties) it made sense to us to go for a twenty year plan, which we plan to augment every five years with other 20 year plans to keep up with inflation. That way, if either of us dies by 50, we'll have a reasonably large lump sum. If either of us dies by 60, we'll have a smaller sum, but more investments. After 60, we should be on the brink of retirement anyway. But we don't have to pay the thirty year premium on my guess as to inflation. Only time will tell if this was the best strategy for us.
I really don't understand why life insurance has only 20-year policies at a time. What happens if it runs out? Do you get your money back? Sigh. I'm hopeless when it comes to understanding life insurance, I'm afraid. Suppose I should read up on it.
That said, disability insurance isn't a bad idea. When you become employed again, most companies let you buy it pretty cheaply. But especially if Senor Dog were to become unable to work, money would come in useful. (Does he have any health insurance? I can't remember.)
I always understood life insurance to be enough to help your loved ones recover and not be financially devastated. I know you guys want to eventually buy a house, so I think it would make sense to make sure the other person can pay off the house, along with covering funeral costs (depending what you want, that can get pricey really quickly) and enough of an income that the other person could have a year or two to process the death and still support a kid or two. Since you're planning on adopting.
So the real questions are: How much will the house cost when you buy it; what kind of funeral would you want and how much would it cost; and how much will it cost per year to raise a kid or two?
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