Moxie Posted April 3, 2015 Share Posted April 3, 2015 Wow, it was really depressing having the expenses of the next 20 years laid out like that. We'll never get ahead! Also, our guy was insiststant that 10-15 times your annual salary was the only way to go (and the numbers looked right). I know Dave Ramsey recommends 8-10; any thoughts?? Quote Link to comment Share on other sites More sharing options...
katilac Posted April 3, 2015 Share Posted April 3, 2015 Wow, it was really depressing having the expenses of the next 20 years laid out like that. We'll never get ahead! Also, our guy was insiststant that 10-15 times your annual salary was the only way to go (and the numbers looked right). I know Dave Ramsey recommends 8-10; any thoughts?? As high as you can go, particularly with kids. 3 Quote Link to comment Share on other sites More sharing options...
regentrude Posted April 3, 2015 Share Posted April 3, 2015 It depends on the goal of the life insurance and the family situation. One working and one stay at home parent is different than two working parents which again is different from a single parent. And the goal: Is it to make sure a stay at home parent can continue to stay at home long term, or to tide the family over a year while the surviving spouse goes from part time to full time work, or to cover the cost of child care if the primary caregiver dies, or to pay off the house, or create a nest egg sufficient to pay for all kids' private college tuition? Those scenarios would have different answers. 7 Quote Link to comment Share on other sites More sharing options...
Erica in OR Posted April 3, 2015 Share Posted April 3, 2015 We went fairly high, both my husband and I, with term insurance. We have five kids 15 and under, and I feel that's reasonable. Erica in OR Quote Link to comment Share on other sites More sharing options...
Catwoman Posted April 3, 2015 Share Posted April 3, 2015 How much insurance to buy can vary a lot, depending on your anticipated long term needs. It also matters whether you plan to kill your dh for the insurance money in a few years, while you're still young, or many years from now when he is old and cranky. If you're gonna do it soon, go with a higher number.. ;) 15 Quote Link to comment Share on other sites More sharing options...
I talk to the trees Posted April 3, 2015 Share Posted April 3, 2015 How much insurance to buy can vary a lot, depending on your anticipated long term needs. It also matters whether you plan to kill your dh for the insurance money in a few years, while you're still young, or many years from now when he is old and cranky. If you're gonna do it soon, go with a higher number.. ;) *snort* :lol: 1 Quote Link to comment Share on other sites More sharing options...
Guest Posted April 3, 2015 Share Posted April 3, 2015 How much insurance to buy can vary a lot, depending on your anticipated long term needs. It also matters whether you plan to kill your dh for the insurance money in a few years, while you're still young, or many years from now when he is old and cranky. If you're gonna do it soon, go with a higher number.. ;) I did tell him to sleep with one eye open. 1 Quote Link to comment Share on other sites More sharing options...
3 ladybugs Posted April 3, 2015 Share Posted April 3, 2015 Insurance for me was to cover the need for a nanny so DH could work like he does now. Insurance for DH is to make it so I could stay at home with them. Obvious if we both die my chosen guardian would be able to do either, but honestly I think she would stay home. Dh's policy is in the 10-15 year range. Mine is more then that for a live in nanny and about that for a live out. 1 Quote Link to comment Share on other sites More sharing options...
Scarlett Posted April 3, 2015 Share Posted April 3, 2015 Wow, it was really depressing having the expenses of the next 20 years laid out like that. We'll never get ahead! Also, our guy was insiststant that 10-15 times your annual salary was the only way to go (and the numbers looked right). I know Dave Ramsey recommends 8-10; any thoughts?? I just renewed mine. Went from 250k to 100k. My only child is 15. If I die tomorrow I want him to have enough money to buy a car, go to some sort of job training and buy a house. He has a father who will care for him well financially. The house we live in is paid for and it will go to my husband. I find 10 times annual salary ridiculous especially if there are two parents alive. . 3 Quote Link to comment Share on other sites More sharing options...
kitten18 Posted April 3, 2015 Share Posted April 3, 2015 Insurance for me was to cover the need for a nanny so DH could work like he does now. Insurance for DH is to make it so I could stay at home with them. Obvious if we both die my chosen guardian would be able to do either, but honestly I think she would stay home. Dh's policy is in the 10-15 year range. Mine is more then that for a live in nanny and about that for a live out. Yes, that's our thinking as well. Quote Link to comment Share on other sites More sharing options...
goldberry Posted April 3, 2015 Share Posted April 3, 2015 When DD was younger we planned for enough for either me to continue to stay home, or for DH to stay home for at least a couple of years (or at least part time). I work part time, so DH would also be losing some income. We also planned for at least enough to pay off our house, so neither would have to worry about moving or losing the house. We got a 20 year term when DD was born. I am sure we will change some (probably decrease) when this one is up. Still enough to pay off the house though. ETA, when MIL's husband died, he had nothing. She was forced to move from the house the two of them built with their own hands. Quote Link to comment Share on other sites More sharing options...
Guest Posted April 3, 2015 Share Posted April 3, 2015 I just renewed mine. Went from 250k to 100k. My only child is 15. If I die tomorrow I want him to have enough money to buy a car, go to some sort of job training and buy a house. He has a father who will care for him well financially. The house we live in is paid for and it will go to my husband. I find 10 times annual salary ridiculous especially if there are two parents alive. . Really? When we did the numbers, the higher range was right. If DH dies tomorrow, the insurance we just bought would pay for the funeral, pay off our home and fully fund the kids college funds (that was a truly horrifying amount) and then pay me about what he brings home per month now. I would still be able to put money aside for retirement while living in our current home as a SAHM. We also bumped up mine so DH can pay off the house, fund the kids college funds and hire a nanny. Mine was so amazingly cheap, I was shocked. I almost kissed our agent square on the mouth when he explained that "it is because you are so young". 2 Quote Link to comment Share on other sites More sharing options...
Scarlett Posted April 3, 2015 Share Posted April 3, 2015 Really? When we did the numbers, the higher range was right. If DH dies tomorrow, the insurance we just bought would pay for the funeral, pay off our home and fully fund the kids college funds (that was a truly horrifying amount) and then pay me about what he brings home per month now. I would still be able to put money aside for retirement while living in our current home as a SAHM. We also bumped up mine so DH can pay off the house, fund the kids college funds and hire a nanny. Mine was so amazingly cheap, I was shocked. I almost kissed our agent square on the mouth when he explained that "it is because you are so young". Well you have 5 kids I have one. And you plan on spending a lot more on college than I do. I was paying 17 a month for 250k.....now I am 49 and it will be $28 for 100k....on 20 year term. My only child is almost grown...I just don't want to leave him with nothing from me if I die especially in the next 5-10 years. 1 Quote Link to comment Share on other sites More sharing options...
Kari C in SC Posted April 3, 2015 Share Posted April 3, 2015 My dh and I were just discussing this. I don't have enough insurance on me and we need to fix that. Some of you spoke of hiring a nanny, etc. so your dh can keep working. My husband's brother lost his wife when she was 33 and my husband's best friend lost his wife when she was 48 - just last year. To make the twist on this even more crazy is that dh's brother employs dh's best friend in his construction company. What we have noticed watching both of them walk this very difficult road is that neither of them were ready to jump back into work. His brother owned his own business and stepped way back letting the dh's best friend really run it for many years. Now... That dh's best friend is now walking through grief, dh's brother is allowing flexibility in work. One thing we took away from this is that if "the curse of our road" as we call it because we all live on the same road - happened to us - we need enough insurance that dh can not work if that is what he needs to do. And... When we lost our oldest son... Going back to work sucked for my dh. Yeah, I know that this reads like a freaking movie of the week. It's my life... Honest. 4 Quote Link to comment Share on other sites More sharing options...
Liz CA Posted April 3, 2015 Share Posted April 3, 2015 If you are not planning on doing some kind of paid work - part-time or full time, then the multiplication factor sounds reasonable. In reality, you should probably do what you feel most comfortable with and what you can comfortably afford. 2 Quote Link to comment Share on other sites More sharing options...
Arcadia Posted April 3, 2015 Share Posted April 3, 2015 Whatever you can comfortably afford. 10-15 times annual isn't high though for the sole breadwinner. There is mortgage to be paid off, property tax to be paid annually and finding work won't be immediate for a SAHM assuming all kids go to public school and have after school care. I don't have life insurance for me. If anything happen, hubby's pay is enough to put both kids in an average private school including summer day care. When we ask AAA about life insurance since we were renewing car insurance, the rates quoted wasn't attractive. Quote Link to comment Share on other sites More sharing options...
Aiden Posted April 3, 2015 Share Posted April 3, 2015 Our goal in purchasing insurance on my husband was to replace his income--have enough life insurance money that it could be invested, and the interest would replace his income indefinitely. We didn't quite make it because the prices are so high, but we came close, and we know that if anything happens to my husband, I'll move to be nearer our extended family, and the cost of living is lower there. Our goal in purchasing insurance on me in the past was to enable my husband to hire a housekeeper and keep working--any kind of emotional upset sends him right to work, so we expected that he would work long hours in the aftermath of losing me. We haven't adjust that amount since our daughter's birth because, where we live, a full-time nanny/housekeeper costs the same as just a housekeeper. However, we may need to look at increasing it so he could take some time off work to help our daughter through losing me and to provide for a private school if he decided to move back to the United States. Quote Link to comment Share on other sites More sharing options...
G5052 Posted April 3, 2015 Share Posted April 3, 2015 Every family is different, but term is the way to go because your needs are going to change. We had more when they were little, and I was working very part-time. DH had enough that I could pay off the mortgage and homeschool through at least 8th grade. I had enough that they could go to the local Christian school through high school and have household help. Next year we'll have one in college and one in 11th. If something happened to me, the younger one could school alone at home or go to community college early, so the needs are very different. DH could also retire this year. I'm working full-time, and the mortgage is nearly paid off. So soon my first term policy will end and the second one will be enough to cover household expenses and what I'll be contributing towards college with my work for both. We decided to keep DH's policy the same while he's working because they pay part of it, and the rate is better than we'd get elsewhere for less coverage. Quote Link to comment Share on other sites More sharing options...
G5052 Posted April 3, 2015 Share Posted April 3, 2015 I would add a word of caution to the thought that term life insurance is the only way to go. We took out term policies on dh when we were young, and now they are close to expiring. In the meantime, our plan to take out whole life when he was in his 40s was dashed because of cancer. No one would write a policy on him until 10 years had passed. By then, he was in his mid-50s and had his appendix taken out. Since he was hospitalized (for any reason) the 10-year waiting period was reset. I wish that we had just one whole or universal life policy on him. Yes, good point. DH would be in that category too, although not because of cancer. Thankfully his is through work, so that doesn't matter. Quote Link to comment Share on other sites More sharing options...
3 ladybugs Posted April 3, 2015 Share Posted April 3, 2015 I would add a word of caution to the thought that term life insurance is the only way to go. We took out term policies on dh when we were young, and now they are close to expiring. In the meantime, our plan to take out whole life when he was in his 40s was dashed because of cancer. No one would write a policy on him until 10 years had passed. By then, he was in his mid-50s and had his appendix taken out. Since he was hospitalized (for any reason) the 10-year waiting period was reset. I wish that we had just one whole or universal life policy on him. Do you know if that includes baby delivery? I am 5 years out from my cancer in June, but I had a baby 2 years ago. I don't think I need more insurance but I am curious. 😉 Quote Link to comment Share on other sites More sharing options...
ScoutTN Posted April 3, 2015 Share Posted April 3, 2015 Be thankful you are healthy and can get it! Dh has serious medical issues in his past and is uninsurable. Quote Link to comment Share on other sites More sharing options...
xixstar Posted April 3, 2015 Share Posted April 3, 2015 I actually did the math for DH and me as a stay at home parent. I also added a few more kids we didn't have yet just because I know were too bust or distracted to update later. So figured in paying off the house, education costs for children, pay off remaining debt, annual income for me to be home fulltime until children reach middle school and then part-time until they left high school. The total wasn't off from what was recommended, which I found very amusing since my way took much longer. The calculations for my policy included reduced employment for DH in top of additional help to hire. Quote Link to comment Share on other sites More sharing options...
J-rap Posted April 3, 2015 Share Posted April 3, 2015 What helped us far more than life insurance (so far!) was long-term disability insurance. 3 Quote Link to comment Share on other sites More sharing options...
Pippen Posted April 3, 2015 Share Posted April 3, 2015 Be thankful you are healthy and can get it! Dh has serious medical issues in his past and is uninsurable. I have a child who was diagnosed with a serious cancer at age 20. We'd planned to take out life insurance when he graduated from community college, so there would at least be enough to cover any potential student loans he would take out. I regret waiting, as he's uninsurable now. Quote Link to comment Share on other sites More sharing options...
melmichigan Posted April 3, 2015 Share Posted April 3, 2015 I can't get life insurance. We have accidental death and disability that will pay off the mortgage because it's all I can get. Quote Link to comment Share on other sites More sharing options...
Arcadia Posted April 3, 2015 Share Posted April 3, 2015 My hubby does have life insurance, bought when he first started working. It won't cover everything but is a just in case. Hubby used to get accidental death and disability from his former employer. I think I should look into that for both of us because long term disability is a bigger drain on finances and would really burden our kids. Quote Link to comment Share on other sites More sharing options...
6packofun Posted April 4, 2015 Share Posted April 4, 2015 This has been very eye-opening. I had no idea that debt repayment (paying off mortgage, etc.) was usually such a big part of people's insurance plans. (You're blessed if you can get policies that big!) Quote Link to comment Share on other sites More sharing options...
Scarlett Posted April 4, 2015 Share Posted April 4, 2015 This has been very eye-opening. I had no idea that debt repayment (paying off mortgage, etc.) was usually such a big part of people's insurance plans. (You're blessed if you can get policies that big!) It is usually considered the least desirable of policies...dimishing pay off. Quote Link to comment Share on other sites More sharing options...
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