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Discussion Starter · #1 ·
I don't have life insurance, and I just recently called about getting some life insurance. My DH has some through work. That article just posted about hth insurance just made me think of this. Do you think life insurance is important? Do you have it? I am thinking I need it just for my kids and DH, because if I were to die, they would need that assistance. But I'm just curious what others think, because lately I am questioning everything I USED to think!<br>
Also, they make you do a physical, bloodwork, etc, and I don't know how I feel about that.
 

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It depends on your lifestyle. If homeschooling or other alternatives to the public schools are important to both of you, could your dh pull that off and still provide for the family? Do either of you have retired parents living nearby who you would trust to help educate the kids, and are they young enough that they are likely to enjoy decent health for a while? After childcare is taken care of, you still need to think about services you provide your family that your dh would have to replace, possibly including housecleaning, cooking, shopping, shuttling the kids to afterschool activities and more.<br><br>
Without insuring yourself, the best case scenario for your family is that they scrimp, save and find creative ways to meet their needs. Worst case scenario could find the surviving spouse forced to take a job s/he doesn't enjoy, possibly move somewhere s/he would rather not, enroll the kids in a school that does not meet your family's values, perhaps need daycare services (and consequently face pressure to vaccinate, which some families find undesirable), and find him/herself working longer hours and spending less time with the kids.<br><br>
Salary.com names the value of the average SAHM at $134,000 annually based on what it would cost to replace her services. It's nice to know you're worth so much -- but IMHO it would be nicer to have a policy and know your family will still enjoy a healthy and more flexible lifestyle if something should ever happen to you.
 

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We have it. We don't have health insurance but we have that sadly to say because it's more affordable. My parents both died young from cancer so that made me feel like it was a good idea. Not much just $100,000 but something to help dh out if I leave early or visa versa.<br><br>
The home visit from the nurse was no big deal and I looked at it like a free exam to tell me where I am medically.
 

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DH and I both have million dollar policies. We wanted enough so that if one of us were to die while DD is still a baby then the other could stay home full time, pay off the house, pay for college, etc. It is a 30 year term policy. It would be so horrific that we did not want money to be an issue or concern. We bought our policies before I got pregnant (bought it when we were about 28) and got great rates. I'll probably get angry remarks for this, but I think this should be close to a necessity for people. If one parent dies do you want to have to take up a second job just to maintain or would you like some wiggle room to care for yourself and children while you grieve and try to proceed with your life. The policy is not about the person who has the policy - it's about those who would be left behind. BTW - the nurse home visit is quite simple. It was short and just included a quick blood draw and health questionnaire if I remember right.
 

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My DH also gets his through work. I got a $100,000 policy in 2001, so I was....33. It's $172/year and I had the same thing as PP -- just a home visit with blood draw and a questionnaire if I remember right. I DO remember the questionnaire, and I know I didn't have to have a complete physical. We got it basically to provide childcare for a few years if I croaked. I'm a SAHM with 3 kids (2 in public school, 1 too little). We pretty much thought it was a necessity too - to make sure the person left behind wasn't overwhelmed.<br>
K
 

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I think it's a really good idea unless you are independently wealthy. If you have a mortgage, you want to be able to pay that off, plus be able to care for the kids and also provide college educations (if that is something you value). The problem with just having what the job offers is that it goes with the job and usually it's not enough insurance at all. I would definitely not feel comfortable with just $100K. Depending on your age and health a 30 or 25 year term policy shouldn't be too much. Life insurance shouldn't be tied into investments either, it should just be term life.<br><br>
When I was a senior in hs my close friend's father died suddenly leaving a sahm and 5 kids from 10-18 yo. She hadn't worked since marriage. If he hadn't had insurance it would have been horrible. Not to scare monger or anything; the likelihood is that you will both live and not have to worry. I just could not be comfortable without a lot of life insurance for both of us (I sah).<br><br>
Of course for any reasonably priced policy they will need to do a health exam (and will request medical records on you too). Weight, bp and bloodwork to make sure you are in good health. They come to your house.
 

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We have it. Like DoulaMary said, it would take some financial burden off the surving spouse and it would give the surviving spouse the option to stay home for a while while greiving, if needed. Even if a SAHP were to die, I think life insurance would still be useful because the children might need to go into daycare which is an added expense, and I'm sure there are lots of other expenses you don't think about, once the working parent doesn't have the SAHP their to take care of the home and has to all the sudden do everything themselves.
 

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I'm curious (not to highjack the thread) but how much would a million dollar life insurance policy be per month? I bet I couldn't afford any thing close to that.<br><br>
I wonder if it's much like health insurance. I've heard too many horror stories where people get denied because of some loophole the insurance co. finds so they don't end up getting covered. I wonder how many people get screwed out of their life insurance, especially when they are vulnerable and grief stricken.
 

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The cost depends on your age, and health, when you get the policy.<br><br>
For the $250,000 policy on me, it's less than $50/month.<br>
For DH, since he's older, it's more, but he also got a discount off the higher rate for his age because he's very healthy--not just average like me. Those are for 20 and 15 year term policies. We didn't need to go 30 due to not still being in our 20s, or 30s....<br><br>
ETA: Shop around, and go with a reputable company that has been around for a long time.
 

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Like I said, we were 28 and perfectly healthy when we bought our million dollar policies and the cost only goes up with age (and any health issues) but I think we pay (it's auto deducted from DH's bank so I never remember) a total of around $150 per month. DH just told me he thinks it's more like $125 but I think he's wrong. Anyhow, that gives a ballpark i guess.<br><br>
People getting "screwed out of" life insurance policies should not be a concern. Really the only thing that makes it void is suicide I think. Of course, each policy may be slightly different. Also of note: no tax ever has to be paid on life insurance. If you have a million dollar policy that is exactly how much money your family would get.<br><br>
Edit: just checked...it is about $125/month for both. DH was right.
 

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Discussion Starter · #11 ·
Thanks so much for all the replies. To answer the PP, the one I was looking at was around $22 per month for a $450,000 policy. (And I am 36 adn in good health.) But, I did shop around. I talked to a friend who is an independent insurance broker, which means he can get get quotes from and work with any company, so he was able to get me the best deal. It really is like a "product", as he explained it to me, so he can choose from several different products. The first person I talked to was just a regular insurance person who works for one company, so she only had one product to choose from, that particular company that she works for.<br><br>
I also worried about that loophole thing, and wondering if that happens, but I bet that is not that common, except for the suicide as the PP mentioned. Plus, I feel like about $20 a month is not bad for peace of mind.
 

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We bought ours from one of the big online sites--the kind that contract through a lot of different companies, so my husband and I ended up with different companies--choose a company with a good financial rating (that was listed on the site, I didn't have to go off and search to find it). We got $750,000 on each of us, I think a 25-year level term policy (we pay the same amount every year), and I think mine was about $450/yr and my husband's was about $600/yr. So it's affordable and, if we ever need it, it gives the surviving spouse (or our kids' guardians, if we both die) choices.
 

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Discussion Starter · #13 ·
Thanks! Can you give me a link for that? I'm still sort of researching. PM if you don't want to post it here. Thank you!
 

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two million on me plus work has additional amounts too.. dh has a million<br><br><br>
at first we didn't have one on him thinking we didn't need to replace his income, but realized I would need to replace his care taking role of the kids.
 

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<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">Thanks! Can you give me a link for that? I'm still sort of researching. PM if you don't want to post it here. Thank you!</td>
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I wish I was just being cagey before, but... I totally forgot which site. Maybe accuquote.com? I really don't remember, and now we just pay premiums directly to the companies we actually got the insurance with. But it really looked like the big companies (the ones that hook you up with one of many different insurance companies) are very similar. Sorry I can't be of real help. <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/redface.gif" style="border:0px solid;" title="Embarrassment">
 

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We also think of it as a necessity. We got a 30 year term life policy on DH at $400,000 for $26/ month. Our policy rate is guaranted(sp) and will never go up. We also used a large company that gives you quotes from mulitple reliable companies. They give the ratings from AM Best, which is an independent company that is known for its great job at rating insurance companies- they look at pay out time, frquency of denied policies, etc.<br><br>
The company we got our quotes from was Zander Insurance. They were great in answering all my questions and I would totally recommend them.<br><br>
Oh, and if you're wondering how much the get, the recommened amount is 8-10 times your (or spouses) income. Of course, SAHM is a bit different, but its still a general rule that can help guide you.
 

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Yes I think its very important. Even if you are healthy and young, you could be in an accident. My husband has insurance because he makes the money we need to live on, and I have insurance because if I died he would have to pay for a lot of childcare and we would lose out on whatever years I would have worked in the future to contribute to college, etc.<br><br>
Dh has $500,000 and I have $250,000 I think. I would like to increase both amounts.
 

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I have it for me, DH and DS. I just feel it’s important. If we were to suffer the tragedy of loosing someone then I want to be darn sure they are taken care of financially. I have enough insurance to be able to pay off our condo, all our debt and pay for a funeral so that DH could take care of DS with no problems on one income. Same goes for DH. If he were to pass away, I am covered and would be able to survive on my income alone.
 
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