SAHMs: Do you have life insurance? - Page 2 - Mothering Forums

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#31 of 50 Old 09-28-2005, 06:28 PM
 
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I have TERM life insurance of about $100,000 an dit only costs may $18/month...but that is throught the military. Mind you it will expire/won't have the coverage when I am 45...which is fine, This is just in the event I die before the kids are self sufficient. I am a SAHHSM, so I want to insure my kids can continue to learn at home. And just want to point out that as long as you are saving/investing and won't have any bills when you are older, term is a much better way to go. Whole Life Insurance is a HUGE money maker for insurance salesmen.

Susan
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#32 of 50 Old 09-28-2005, 07:01 PM
 
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I sure do, and I have a lot. DH and I are each insured for 750K. That's right.

If one of us were to die, we want to be able to do the following:

1) pay off the house entirely (we live in the NE so our housing costs are quite high)
2) pay for college educations for our child(ren)
3) enable the surviving spouse to take as much time as needed to stay away from work, regroup, etc.

We figure, we're going to have it anyway... for a few dollars more a month we will be REALLY grateful to have the settlement if (god forbid) we ever need it.

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#33 of 50 Old 09-28-2005, 07:07 PM
 
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Yes we do have life insurance for me too. It is to pay for banked breastmilk for any children under a year, child care if needed, pay for the funeral, mortgage, bills, etc. Anything left over will go in our children's resp.

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#34 of 50 Old 09-28-2005, 07:26 PM
 
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Yes I have life insurance...I think it is 100,000. If something were to happen to me DH would need $ to pay for childcare since we have three kids. Also funeral expenses, bills, my student loans,etc... I think that amount of money would run out quickly though as none of our children are school aged. I would love for him to use the money to be a stay at home dad for a few years but I'm not sure if he could handle it :LOL

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#35 of 50 Old 09-29-2005, 09:19 AM
 
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No :
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#36 of 50 Old 09-29-2005, 11:57 AM
 
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Just for the record, since a few people have mentioned it, when a person dies their spouse is not obligated to pay off any student loans out of the insurance (or any other debt that was only in the deceased's name, for that matter). The spouse does not inherit the debt, in other words. Now it may vary some from state to state whether creditors can come after the estate which now belongs to the surviving spouse. However a little known fact about student loans is that one of the few circumstances under which they can be "discharged" is when the loan-holder dies.

So if your spouse dies don't go paying his student loans off out of the insurance money! Save that money to take care of your kids!
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#37 of 50 Old 09-29-2005, 06:57 PM
 
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Quote:
Originally Posted by wednesday
Just for the record, since a few people have mentioned it, when a person dies their spouse is not obligated to pay off any student loans out of the insurance (or any other debt that was only in the deceased's name, for that matter). The spouse does not inherit the debt, in other words. Now it may vary some from state to state whether creditors can come after the estate which now belongs to the surviving spouse. However a little known fact about student loans is that one of the few circumstances under which they can be "discharged" is when the loan-holder dies.

So if your spouse dies don't go paying his student loans off out of the insurance money! Save that money to take care of your kids!
Thanks for the info! I didn't realize that

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#38 of 50 Old 09-29-2005, 07:07 PM
 
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Yes, but not much. $75,000

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#39 of 50 Old 09-30-2005, 01:50 AM
 
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We all have life insurance.
Mine is for $250 000. That would provide enough to pay off our mortgage and any other debt. There would be money left over for kids or savings or whatever dh saw fit. It costs about $25 canadian a month.
Dh has $500 000 coverage, as well as some coverage through his work benefits. He also has critical illness insurance. This would give us enough money to pay the bills for a few years if he could not work. We got our insurance through an insurance/ investment company here in Canada called Clarica.
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#40 of 50 Old 09-30-2005, 01:08 PM
 
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I have it too. I am 24 in excellent health so my cost is only 15.00 a month. That is for a pretty good sum that would help my dh out for a good amount of time.

Kim- Simple livin' mama to 4 great kiddos.
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#41 of 50 Old 09-30-2005, 10:38 PM
 
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I think the industry rule of thumb is that you should have 10x the amount of life insurance as you do household income. That's a pretty hefty amount of insurance though. But I would think at least 5x is probably wise, given childcare and saving for kids' college.
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#42 of 50 Old 09-30-2005, 11:09 PM
 
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I think it would be a great investment, and I'll definatly get it when things aren't so tight financially. But right now we couldn't afford the extra monthly payment. Dh has vet's life insurance and a smaller policy through his work right now, but none on me as of yet.

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#43 of 50 Old 09-30-2005, 11:11 PM
 
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Quote:
Originally Posted by verilyI
I think the industry rule of thumb is that you should have 10x the amount of life insurance as you do household income. That's a pretty hefty amount of insurance though. But I would think at least 5x is probably wise, given childcare and saving for kids' college.
wow if that's 10x yearly salary I feel good now, because Dh has about 20x his yearly salary in life insurance :LOL one good benefit about his past military service is high coverage for a low price. I guess I can say we're ahead on something!

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#44 of 50 Old 10-02-2005, 05:33 AM
 
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I definitely think that all SAHM's should have a life insurance policy. There is so much extra my husband would need to pay for if I were to die. We have five children ages 4 months to 7 years and there's no way he could afford childcare on his salary, especially since he travels so much for work. He would need a live in 24 hour a day nanny for a good amount of time. I'm currently insured for as much as his company would allow.
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#45 of 50 Old 10-02-2005, 11:43 PM
 
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Dh and I are in the process of TTC. We've decided I will be a SAHM. So...we recently got term policies for 500,000 each. We pay a total $750 anually for both policies.

Enjoying the journey into natural family living with my two sons and husband.
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#46 of 50 Old 10-04-2005, 12:38 AM
 
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No, I don't since I quit working. I have been meaning to get to this.

My question is this: I plan to be at work full-time in a benefitted job within the next 5-10 years. So, should I buy a shorter-term policy? What does one do with these policies when coverage is again available/provided by an employer?

grateful mother to DD, 1/04, and DS, 2/08

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#47 of 50 Old 10-04-2005, 12:12 PM - Thread Starter
 
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:

Thank you to all the mamas who have replied and shared what their situation is. OF course, we have yet to get around to calling our insurance person, but it IS on the list. Which is a step for us. I have a dear friend who is in the insurance business, so she is working on some numbers and information for me so I can go into my own insurance office armed with a bit more knowledge. That, and all the great stuff here, will be really helpful.

And Loraxc-I don't know the answer to your question, but I bet someone here will...
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#48 of 50 Old 10-04-2005, 12:30 PM
 
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Yes, we have life insurance, alot of it. My husband works New York Life.

I would like to dispell the myth that whole life is jsut for "rich people" or people who have "exausted all other options"

We have whole life on ourselves and our children. I will tell you why.

You lock in your rate with whole life. Yes, its more expensive *at first*, but if you keep renewing your term policy, it goes up at the end of each term. Whole life is fixed, typically up to age 100.

If you stay with your whole life policy long term, your average return is 3 to 4 times what you put into it. (I was skeptical about this, but my DH showed me how it works out.)

Your cash value increases over time (and you can take this money out and use it for college, home improvement, whatever), and so does your death benefit. How is this not a good thing?

After about 12-14 years, the policy will pay for itself.

Term life insurance has none of the above benefits.

We have chosen to invest in whole life for our children, instead of typical college savings like a 529, because in the event they dont go to college, they will still have access to the money for a house, wedding, etc.

As to how much life insurance one needs, my husbands company does a "needs analysis". They figure your income, debts, net worths, desires for your family (paying for college, having parent SAH or needing to pay for daycare), and then base the amount of life insurance you need off of that. Its very customized and a neat process.

I hope I explained all this ok. Its just what I've gleaned from listening to my DH.

Alyssa

Alyssa, wife to one, mama to 2 boys, 5.5 and 4. Living and learning on our little farm.
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#49 of 50 Old 10-04-2005, 12:51 PM
 
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Here are a couple financial advice sites that explain about term vs. whole:

http://www.fool.com/News/mft/2004/mf...?source=EDNWFT
http://www.smartmoney.com/insurance/...story=lifeterm

So to answer loraxc's question, if you only want insurance for a few years, term is definitely the way to go. However I do want to comment on the idea that you only need to buy insurance until you have a job that will cover you. I know this is different for everyone but I have worked at quite a few places and the coverage was never more than about 2-3x my annual salary. I don't think any job covered me for more than $100K. That is simply not enough IMO. I agree that 10x one's annual salary would be a minimum starting place, in terms of one's family being provided for. Especially if your kids are still quite young.
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#50 of 50 Old 10-04-2005, 02:39 PM
 
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Plus if you lose your job, you lose your insurance.

OR

What if you *only* had insurance through work, and you or DP got some kind of terminal illness, diabetese, Hep C, etc., and then you got fired, downsized, let go?

You would no longer have coverage and most likely not be able to get it.

Edited to add:

I read the above links, and they do have some good points. I felt the way they do before I met my dh. Buy term. I didnt understand whole life at all. But now that I do, I understand why (if you can afford it) it is a better choice than Term.

One of those sites says to only buy life insurance *as long as you need it*. When do you NOT need life insurance?

*Children can have it in the event of their death their parents can take time off to recover, funeral expenses can be covered etc. OR so when they are of age, they already have a policy *locked in at the rate of a healthy child* FOR LIFE. They can use the cash value for college, wedding, house etc. (And contrary to what one of those sites said, even at the *guaranteed* rate of return offered on the policies for our children, they still *make* more than we will have put in, over time)

*Young single adults need it to protect their insurability (get it while you are young and healthy, w/ whole life your are locked in at that rate for life), donate to a charity upon their death, or so that their families are not burdened with their funeral expenses in the event of their death.

*Young married couples need it to provide for their spouse and children in the event of their death, and for many of the same reasons above.

*Older married people need it to provide for their spouse and/or their elder parents who have become their dependents, in the event of their death.

*Retirement aged people need it, because typically, most people dont have enough saved for retirement, and women typically live longer, and therefore will need money after their spouse is gone and they are unable to work.

Also, one of the sites says that BOTH term and whole life insurance premiums are locked it. Its true, but misleading. If you buy whole life, you are locked in typically up to age 100. If you buy Term, you are only locked in for the life of the policy which, most people buy 5 year term, though 10+ years of term are also available. After the end of your term, your rates WILL increase, because you are older, therefore higher risk, and hopefully during your term nothing happened that renders one very expensive or impossible to insure.

If anyone has a specific question, I will try to answer it based on my limited knowledge, or I can ask my DH. New York Life spends $300,000 per agent on education during their first 3 years *alone* and they are the longest running life insurance company (160 years). My DH is very knowledgable about all this stuff.

Alyssa

Alyssa, wife to one, mama to 2 boys, 5.5 and 4. Living and learning on our little farm.
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