Is anyone here versed in life Insurance? I could use input or understanding.
DH is a public school teacher making about 50K annually gross. We are supplemented by "gift" money that could go away at any point but currently covers necessary expenses/bills. We are debt free with the exception of a new mortgage. I am SAHM homeschooling two kids, age 5 and 12. We have little retirement and no college savings.
DH has term insurance in the amount of 200K, an amount I believe should be raised. I have no life insurance, and would like to get it asap. When I checked rate quotes for term insurance online, I was told that I can only get a certain amount since I do not work. *That* I do not understand. I can get it for my kids, why am I limited in what I can get for myself? In addition, I cannot exceed what DH is insured for (reason unknown?) so need to raise his amount first.
If I use the formula Suze Orman recommends, I use what we need annually x 25. If dh were to die, we'd need $3500 a month which is roughly 1 million in insurance. Do I then insure myself for the same amount? Lesser?
All suggestions, thoughts, knowledge welcome. I would like to have this figured out by end of February.