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Life Insurance

post #1 of 12
Thread Starter 
We have medical and dental insurance. But I do not have life insurance for myself or my daughter. What are your thoughts on life insurance as a single mama? I am completely solo in parenting so I know I need life insurance of some sort on myself....

Do you find that as a solo/single parent you take out a larger policy? What amount of life insurance do you have on yourself and is it a term or whole life policy? What amount of life insurance would you suggest.

What amount of life insurance do you have for your child(ren)?

Also if anyone has insurance company suggestions I am open to all advice.

Thanks.
post #2 of 12
I have a policy for $100k. I get it through work and get a good deal on it. Do you have an estate plan? Whoever gets your kid will then have control of that money until she's 18. After my divorce was final I set up a trust for my kids. My lawyer told me if I was dead it would be almost guaranteed that my X would get full custody. And I did NOT want him to be in control of the money and assets I have set aside for the kids. So my sister is the executor of the trust and she would have to dole the money out for the benefit of the kids as she sees fit. So the beneficiary of my life insurance is the trust rather than the kids themselves. As a single parent I do think it's a good idea to have life insurance. I feel like I sleep better at night knowing I've planned for my kids to be taken care of as best as I can.
post #3 of 12
I have a $500,000 term (20 year) life insurance policy.

There are all kinds of calculators (and opinions) to determine how much you will need. Read all the opinions/thoughts and see what feels most comfortable to you.

I went for $500,000 policy (through MetLife) because it shouldn't cost more than $25,000 a year for ds' upkeep through the age of 18. And, that $25,000 a year grows every year I don't die.

Plus, my parents are the beneficiaries of the policy and they are both very smart with money.

My policy is for 20 years, so he is covered until he is 25. By the time he is 25, he better be able to support himself!
post #4 of 12
I have $15,000 provided by my employer that will go to my parents to take care of cremation and memorial stuff. Part of my divorce decree states that we each have to have $250,000 in life insurance so I have that as well for 20yr term with my children as beneficiary. I also have $50,000 whole life on myself to go to paying off my debts (student loans and cc) with my parents as beneficiary. My mom has a $50,000 policy on me as well that she started when I was a little girl.
In addition, I have $50,000 of whole life on both my kids. My mom has purchased a $5000 policy on each of my kids too.
I think life insurance is extremely important. My kids will be well cared for if something happens to me because their dad will see to that, and they will get SS death benefits until they are 18yrs. But, I want to make sure that the future stuff, like college, is taken care of and that is what the $250,000 is about.
A will is also a MUST. I'm having one drawn up once the divorce is final.
post #5 of 12
I don't have any life insurance for DD, can't even contemplate that, but I think the general wisdom on that is that it's a waste of money unless the child has a condition that would make her uninsurable later. Even then, probably not a wise buy.

I have $350,000 in coverage on myself, with DD's guardians as beneficiaries. I'm going to create a trust, however, and I invision that at least part of the insurance proceeds will go into trust for DDs benefit.

For me, the life insurance is an important peice of the puzzle, since it would be cash paid fairly shortly after my death, allowing DDs guardians to deal with her day to day expenses and keep the mortgage on the house current until it could be sold. I (luckily) have equity that I don't want DD to lose, and don't want her guardians to have to shoulder the mortgage in the interim.
post #6 of 12
I have $250,000 on me, and I went with Zander Insurance, which is recommended by Dave Ramsey, if you're familiar with him. Zander's site walks you through the options and gives you an estimate for how much money it would cost you. I pay mine quarterly, and it runs about $50 each time.
post #7 of 12
Thread Starter 
Thanks ladies for being so open and sharing your thoughts. I have been looking into it and actually am considering a MetLife term (20 year) life insurance policy. I will update the group once I get it all figured out.
post #8 of 12
Quote:
Originally Posted by haydn'smommy View Post
I also have $50,000 whole life on myself to go to paying off my debts (student loans and cc) with my parents as beneficiary.
Your parents and your children will not be responsible for your debts should you die. The executor of your estate would pay your debts with your assets and a policy payable to your parents would not be amongst your assets. It would be their assets. I'd double check on that.
post #9 of 12
I am glad this thread was started. I have been thinking about this for a long time. I know I need life insurance (badly). But because of my receiving SSI it gets tricky and I'm pretty sure I'm not technically allowed to have it (counts as savings, which I'm not allowed to have much of). I need to do a lot more research though because I need to do something so that my daughter can be well taken care of should I pass away. Especially because the people likely to take her aren't even related by blood, so I don't want to burden them with that much extra financial responsibility if I don't have to.
post #10 of 12
I can't imagine term being counted--you don't have any cash value.

I've used www.acuquote.com You can see several quotes and they will shop for the best policy for you if you have any health issues.
post #11 of 12
Quote:
Originally Posted by bonbon mama View Post
Your parents and your children will not be responsible for your debts should you die. The executor of your estate would pay your debts with your assets and a policy payable to your parents would not be amongst your assets. It would be their assets. I'd double check on that.
They will be the executor of my estate and since I really have no assets of any value, they will need some extra money to make sure things are paid off.
post #12 of 12
Quote:
Originally Posted by haydn'smommy View Post
They will be the executor of my estate and since I really have no assets of any value, they will need some extra money to make sure things are paid off.
If your student loans are federal, they are forgiven upon your death. Nothing to pay.
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