Elizabeth86 Posted July 1, 2017 Share Posted July 1, 2017 We have never bought any and we REALLY need to. Any advice or tips before we call the insurance company? Quote Link to comment Share on other sites More sharing options...
3 ladybugs Posted July 1, 2017 Share Posted July 1, 2017 Figure out the person's worth in dollars and try to get that much insurance. For instance when we got insurance for me, we calculated the cost of a live in nanny plus our children going to college.Once the children are on their own, life insurance isn't an issue. I am a housewife/stay at home mom so that is to be expected. On the the other hand for DH we did the cost of the house (pay off amount) plus living expenses (figuring on interest accruing on the lump sum). He doesn't want me to work while our children are living at home, so that was in the calculation. Consequently he is insured at about 3 times what I am. For us, it really was about making us whole. I should also state that he doesn't see me as worth 1/3 of him, just for monetary needs (since he would still work and I haven't worked since 2005) this is how we looked at it. 1 Quote Link to comment Share on other sites More sharing options...
MommyLiberty5013 Posted July 1, 2017 Share Posted July 1, 2017 Please be sure to insure the spouse who only receives a paycheck of the heart. The not in the workaday world one. People often fail to account for how tough it is for a bread-winning spouse to lose the non-employed one and be stuck with child care, cleaning, funeral, and other life burdens. I'm a SAHM but I still carry life insurance. It's not as much as DH's but it could pay for quite a bit. Quote Link to comment Share on other sites More sharing options...
Bootsie Posted July 1, 2017 Share Posted July 1, 2017 Make sure that you distinguish between whole life insurance and term life insurance. Whole life insurance coverage will continue as long as premiums are paid. So, you can purchase a $500,000 policy which will continue to cover you into old age. Also, the policy builds up a cash value; this means that part of the premium you pay is like a savings account.; so if you reach old age (meaning you have not used the insurance) you can end the policy and receive a payment. Whole insurance is much more expensive than a term policy. A term policy lasts for a particular time period. For example, a 10 year 500,000 term policy will pay 500,000 if you die any time during the next 10 years. If you die in 10 years and one week there is no insurance payment. You are buying insurance just for the time period you need it. As your children age and as your wealth builds up (home equity, retirement savings, etc.) you will not need life insurance. Quote Link to comment Share on other sites More sharing options...
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