We're meeting w/ our insurance guy tonight. We have a good policy for H, but none for me.
We're thinking about increasing (maybe doubling) his policy. Now, I know that this guy's job is to convince us that we need a policy for me. He sells insurance, that's what he does. But I have to wonder if we really do need it for me.
I SAH. The only thing I can think of that H would need to pay for, if I died, would be child care (probably a full time nanny), and a cleaning service. Financially, that's really all I bring to the table. He could easily afford that (I think) on his salary alone.
WWYD? policy for me or not? What percentage of H's would you aim for? I'm happy to get it if I really need it, but I'm not convinced it is really a financial necessity, kwim?
One thing to think about is whether or not he'd be able to return to work right away if you passed away. He might want or need to take time off to grieve and life insurance would allow him to do that. Or do you think he'd really want to work the same hours he works now and leave your kids with the nanny all day? He may want to cut back to care for the kids, who would be dealing with a lot at losing their mom. I think SAHM's tend to underestimate the value of what they do. A term life insurance policy would probably be pretty cheap (assuming you are in good health) and if your kids are young, I'd consider it so that he'd have some resources to help him deal with the worst possible scenario.
Post by ThirdandLong on Aug 13, 2012 16:04:06 GMT -5
There's also that large payment related to burial plot, casket, burial vault, headstone, funeral home rental, mortician services. It's quite a bit more than people realize if it isn't covered by supplemental insurance. Also, if you had large medical bills related to whatever (God forbid) may have caused your passing, you wouldn't want to leave your H with that burden.
Post by emoflamingo on Aug 13, 2012 16:54:01 GMT -5
I'm not the breadwinner by any means (I usually work only PT) and I have a small policy. I did a 10 year term for $50,000 because it was what we could do financially and I can convert it to whole life between years 2 and 10 without losing what I've invested so far. I did a small one to cover any medical bills I may incur plus burial, which can get expensive. Even cremation is expensive. So it's not just what you bring to the table, but also what costs are incurred afterwards.
(For full disclosure, I do sell insurance but I'm not life licensed in my state so I can't sell life insurance. I just know from experience, with having to go through this with my mother passing when I was younger, how valuable it is to have SOME kind of life policy. I'm buying policies for my boys once we get into a better situation financially.)