SAHMs: Do you have life insurance? - Mothering Forums

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#1 of 50 Old 09-07-2005, 12:15 PM - Thread Starter
 
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I've been thinking about this a lot lately. DH provides the income for our family. I, of course, am the childcare provider and "household manager" so-to-speak (although we share most all household responsibilities. If something happened to DH, he has life insurance. And the kids and I would be able to manage financially, at least for a good chunk of time until another we could come up with a plan.

Now, if something happened to me, DH would probably have to find childcare for our kids. And maybe hire a housecleaner (at least occasionally). We don't have life insurance on me, however. And these "duties", of course, translate to a pretty large amount of $$$ if he had to hire someone to do them (or put the kids in daycare).

So, my questions is: Do YOU have life insurance? If so, did you go through your normal insurance provider to get it? Do you know what your premium is? And if you don't have life insurance, WHY? And should we all have it on ourselves as SAHMs?

TIA for any input/discussion.
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#2 of 50 Old 09-08-2005, 06:18 PM
 
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I do have life insurance. DH works for a very large life insurance company so we all have it. Since he works with the company it's very cheap and we all have ample coverage.
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#3 of 50 Old 09-08-2005, 06:31 PM
 
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I have life insurance, only $15,000 policy though. DH just got the information for a better policy for both of us that he needs to mail in (must remind him of that tonight!) so both of us will have more coverage.

I was thinking like the OP. If something happened to me, there's first off, funeral expenses. Then DH would have to find childcare and someone to help around the house, and that would be expensive. We don't have a lot of savings (we spent it all when he first got out of the military last year) so he'd need the money. Since we're young and don't smoke, the premiums aren't that much for the peace of mind we get from it.

Interested to see what other mamas say.
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#4 of 50 Old 09-08-2005, 06:43 PM
 
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I have life insurance coverage... If something happened to me, it would take a lot of money to cover the work I do (especially while DD and any future arrivals are still young). I have a $100,000 policy through State Farm, and we pay $13 a month. If something happened to me, that money should allow DH to pay for funeral expenses, some sort of child care (hopefully a full time, in-home babysitter), and perhaps to pay for somebody to assist with household cleaning, at least for a while.
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#5 of 50 Old 09-08-2005, 08:33 PM
 
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We will both have life insurance. How much do y'all suggest. Is there a default suggestion for life insurance (like have three months salary in the bank)?
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#6 of 50 Old 09-08-2005, 08:49 PM - Thread Starter
 
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Hi Mamas,

Thanks for starting off this discussion and for sharing your experiences. I don't have much time at the moment, but I did see all your replies. And I wanted to point out that I didn't proof my post so it has a few typos. Sorry 'bout that : More when I can.
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#7 of 50 Old 09-08-2005, 09:05 PM
 
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Yes, absolutely. We got the max on me that DH's company would allow for a spouse, and for DS as well. I think it's $30K and we pay like 15 cents a month or something :LOL

WAHMama to Allen (2-10-05) and Alexa (6-27-08)
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#8 of 50 Old 09-08-2005, 09:17 PM
 
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Yes! Quite a lot, in fact. About 1/2 million. Dh would have to replace my current childcare & household services *and* my earning potential once the children are needing college tutions.
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#9 of 50 Old 09-08-2005, 09:25 PM
 
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Here is a past thread about the same issue:
http://www.mothering.com/discussions...life+insurance

I do have life insurance. 1/2 of what DP has, right around $250K. That would allow DP to pay off the house, put a little away for college and then he could definately live off of his income (since child car payments could replace our current mortgage payment).

 

 

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#10 of 50 Old 09-08-2005, 09:27 PM
 
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Yes, our financial planner advised me to get term life insurance. I believe I'm covered for one million dollars and I think it costs $70 per month. My husband is covered for more and his costs $140 per month.
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#11 of 50 Old 09-09-2005, 01:03 PM
 
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I have term, for 10 years that gives dh $350,000 so he can stay home with the children until they go to school. IT's around $250/yr. Not much, but worth it.
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#12 of 50 Old 09-09-2005, 01:19 PM
 
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I don't have life insurance for me but this post has motivated me to look in it!!
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#13 of 50 Old 09-09-2005, 01:25 PM
 
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YES. I think it' very important, since DH is the breadwinner and I stay home. If I were gone, somehow he would have to provide for 3 children without me here to raise them. shudder.

My bank (and most credit unions) offer it for free. Its a negligible amount ($5,00, I think) but for $15/month I have incresed the benefit to $100,000. That's still not much but it's a start. We've also been looking into additional life insurance. Our accountant suggested we should each have enough to completely pay off our mortgage PLUS an extra year's salary (DH's salary).
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#14 of 50 Old 09-09-2005, 01:27 PM
 
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we are woking on getting me some, just upped Dh's in light of the baby comeing, and will up his at work again after the birth.

We are getting -- on me -- enough to pay off full value of the house. the idea being, if something happens to me, DH pays off the house,a nd then has that 2000 a month to pay for inhome care (all day housekeeper for the home and kids) or something, as he still would not want to send the kids to a center.

That is for starters; we will reassess and get more on me before i turn 40 definatly, and likly more on me with next child.

We have enough on DH that I'd not have to retrun to work; we need enough on me to allow Dh to pay for the kids and house to be cared for as we want.

But

we don't have it yet -- we are trudgeing though the red tape application process,

Aimee

Aimee + Scott = Theodore Roosevelt (11/05) and 23 months later Charles Abraham (10/07)....praying for a little sister; the search starts May 2014
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#15 of 50 Old 09-09-2005, 01:34 PM
 
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Quote:
Originally Posted by Stinkerbell
Our accountant suggested we should each have enough to completely pay off our mortgage PLUS an extra year's salary (DH's salary).
good to know - so that is typically be about 300,000 right (if you bought a home after the boom )
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#16 of 50 Old 09-09-2005, 01:37 PM
 
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We have life insurance on all of us. Not much for the kids, maybe 15K, enough for a funeral and for dh to take some time off of work to grieve. For me, it's not as much as I would like... I'll have to look into upping it. It's basically enough for dh to take about 1/2 year off work, if he manages it properly We don't pay much, about $25/month (dh's work pays for most of our premiums)
HTHs
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#17 of 50 Old 09-09-2005, 01:38 PM
 
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Yes, that seems about right. Your complete mortgage payoff, plus breadwinners salary for a year. Thats jsut what our accountant suggested but it seems sufficient if you think about it.

I just went to Intelliquote.com and they have a very good online quote generator. It shows a bunch of different options. I just applied for a bigger policy for LESS money than Im paying now! I am paying $15/month for $100k. I applied for a $350K policy for $21/quarter. Nice!

Bearsmama, you've at least dome me a good service by drawing my attention to this! Kudos.
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#18 of 50 Old 09-09-2005, 01:38 PM
 
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It blows my mind when SAHMs don't have life insurance. We have so many threads here about how SAHMs' work isn't valued, and discussions about those articles about how SAHMs' work should be compensated at $120K/year, etc., but it seems like in polls that the majority of SAHMs are not covered??!! Like their contributions to their family are not actually worth anything after all? I guess if you are on a very tight budget it is hard to find the money...

What's worse, if the working spouse died at least the SAHP would be entitled to social security benefits for herself and children, besides any insurance, whereas if the SAHP never worked, or only for a few years, there will be little to no SS benefits going to the surviving parent to support the children. Just something to think about...

I am covered for 1/2 million for about $22/month through USAA.
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#19 of 50 Old 09-09-2005, 01:47 PM
 
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I forgot to mention that all of our debt, including our house, car and bank loans are life insured. If either my dh or myself die, they are all paid in full.
In my opinion, this is a must!
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#20 of 50 Old 09-09-2005, 04:55 PM
 
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Yes, I have life insurance. I agree with the other posters that all SAHM's should have it....at least until your child(ren) are old enough that they don't need a caregiver while dad is at work. I just took out a 10 year policy for $250,000 a few months ago just before my son turned one. My husband's policy is for longer and for more money than mine. My premiums are somewhere around $15 a month, but I can't remember exactly. I couldn't get the "best" rate, because apparently I don't weigh enough (???) and somehow that increases my chances of needing the insurance.
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#21 of 50 Old 09-09-2005, 05:04 PM
 
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Absoulutly! About 1/2 mill I believe.
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#22 of 50 Old 09-09-2005, 07:17 PM
 
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I do - for some reason that I don't understand! mine was crazy expensive becaue I have high functioning autism, and so I have less then DH does, 100 K, but it's enough to tide him over, especially since we have both sets of parents nearby for childcare. He has 500 so I could still SAH with the babes....
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#23 of 50 Old 09-10-2005, 12:30 PM
 
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Absolutely. Before we had kids, I was a full-time student, so we only had life insurance on dh. But it feels really important to have life insurance for me now. I mean, the reason we have it for dh is so that if something happens to him, I can continue to stay at home with the kids. If something were to happen to me, we wouldn't want him to continue working and put the kids in daycare...he would stay home with them, or at least work very reduced hours, which would mean a different (lower paying) job.
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#24 of 50 Old 09-11-2005, 12:50 AM - Thread Starter
 
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Thank you mamas. I am going to call our insurance co. this week. I have a friend in the insurance business and I will try to talk to her before I speak to our agent.

Do you all have full or term or WHAT? And, btw, what's the difference? :
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#25 of 50 Old 09-11-2005, 02:30 AM
 
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Yes, though mine is a fraction of DH's, maybe a tenth. Just because when we bought it that's what we could afford, and he is, after all, the one bringing home a salary.

Also, I am a bit oblivious about this stuff, but (forgive my garbling the terms) I think we have "whole life" as opposed to "term," which means I'm not sure what, it's a big difference. DH knows what the difference is, I don't.
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#26 of 50 Old 09-11-2005, 07:33 AM
 
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The main two kinds of life insurance people get are either "whole life" or "term." Insurance companies push "whole life" as an investment, but every financial expert, financial magazine, or non-biased advisor I've ever come across says whole life is a rip-off. (Sorry merpk.)

The difference is that whole life insurance is generally a higher payment per month, but after a certain number of years it accumulates a value that can be cashed in. Term insurance, OTOH, is a lower payment per month but never pays out unless the covered person dies. So some people see term insurance as "throwing your money away." That may be true, but whole life insurance policies do not ever pay out anywhere near what is paid into them over the years. So the advice of financial experts is to pay the minimum you can for term insurance to cover you in case of a crisis, and whatever extra money you have should go into some kind of interest-bearing savings or mutual fund account.
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#27 of 50 Old 09-11-2005, 10:54 AM
 
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Yeah, only do whole life if you've maxed out on all your other investments (which many of us are not). The reason whole life may be good is if you are super, super rich . Other than that, term is what you need. As I wrote in my pp, we have 10 year on me so that it will cover my dh at home until they go to school.
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#28 of 50 Old 09-11-2005, 11:18 AM
 
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We have a 2 hundred thousand $ policy on me, enough that DH could take some time off work for a while, and decrease the amount of hours he works when he returns. We have a huge policy on DH because out of the 2 of us, he is much more likely to die then me, comutes many miles on rural highways, flys private planes as a hobby, rock crawling, ... Plus my parents live 2 miles away, and are extremely involved with dd now, if something happened to me, my mom would really help DH out.

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#29 of 50 Old 09-11-2005, 11:08 PM
 
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I have whole and accident/accidental death coverage for both me and the kids... it's a $250,000 policy each. DH has the same plus 2 other whole policies. He's worth about 1.5million total.
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#30 of 50 Old 09-27-2005, 10:34 PM - Thread Starter
 
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Thank you for all the additional replies! I appreciate it. And I still need to talk to our insurance person, but it's now on the TO DO LIST.
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