can we talk about life insurance?

[Deleted]

I know this is boring and I should go to mm, but I'm scared of that place.

I know how much insurance h and I need, so that's taken care of. The problem is that I don't know what kind. Forgive me because I can't remember the names, but these were my options:

Option a- pay into it for 20years and if no one dies then that's it
Option b- 3x the cost of option a, but pay into it for 20years and if no one dies then we get all of that money back. It would be a substantial amount that we'd get back when we're 50.

Neither of us are smokers, are in good health and don't have a family history of cancer or anything like that.

We each have a small life insurance policy through work, that would cover h' sstudent loans and our car loan with some left over. Our final costs will be somewhat low (h wants to be cremated and I want my body donated to science), so we won't need a ton of money for that. We do own our house outright and h said that if I die, he'll move into a smaller place.

What kind of life insurance do you have? What should I do? Or should I go ask on mm? Tia!

[jennlin]

we have just the life insurance through work, and it's free.. i think it's only 100k, but we don't owe very much on our house, and have no other real debt (no car loans or student loans). we also have about 2 years of both our incomes in various investments that can be pulled out as necessary....we don't feel the need for additional life insurance.

[mkate710]

I work in the industry, so take my thoughts with a grain of salt

Option A, or term life, is generally not the greatest option if you're generally healthy and lead a relatively non-dangerous life. It's common to purchase if, say, you're going off to war and need additional coverage. Or if you do stuff like heliskiing on a regular basis. Or if you have an anticipated gap in coverage.

Personally, I don't like the idea of paying into something if I'm probably not going to get anything back. If you can find a decent rate on a whole life policy, that would probably be the better option IMO.

[Deleted]

Oct 16, 2012 9:38:12 GMT -5 mkate710 said:

I work in the industry, so take my thoughts with a grain of salt

Yay! I was hoping you would weigh in.

I just got a quote from state farm since we insure the cars/house with them, but do you have any recommendations for other places to get quotes from?

Thanks mk!

[mkate710]

Oct 16, 2012 9:48:17 GMT -5 @uwhuskygirl said:

Oct 16, 2012 9:38:12 GMT -5 mkate710 said:

I work in the industry, so take my thoughts with a grain of salt

Yay! I was hoping you would weigh in.

I just got a quote from state farm since we insure the cars/house with them, but do you have any recommendations for other places to get quotes from?

Thanks mk!

State Farm is a great place to start, since they'll probably give you a discount for bundling it with other policies. Definitely grab a couple other quotes just to compare and make sure you're getting the best possible rate, since you are young and healthy and all. If you have a financial advisor who is licensed to sell life insurance, they can sometimes quote multiple companies for you. My company sells through agents, brokers and banks, and I know a lot of other companies do as well.

[fiddles]

We have option B that you described. We could actually "borrow" against it if we want. For $500k for me we pay $87 (I think) and for $500k for H we pay $100. His is a little higher because at one point in his life he smoked...and because of his job. I also have one through work that is 3xs my salary. We decided for additional money because if something were to happen to us we wanted absolutely everything to be paid off and the other one not have to worry about anything.

State Farm should be able to give you a good deal. We went through Allstate because that's who we have everything else with.

[karebear219]

We have a small suplimental term policy for our life insurance to cover me. H and I both have pretty good coverage through work, but with bkb in our lives we needed a little more to cover me. That way H could afford to stay in the house and afford to take care of bkb as a single dad. It's only ten dollars a month.