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Do you buy life insurance? How much is the death benefit?
November 9, 2010 at
07:53 AM
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Life insurance is for the loss of income or the uncertain cost from the death of primary wage earner.
And no, that's not the only use for life insurance.
Why do you need to buy life insurance on your son? He has no income yet.
It's a whole life policy. Because we took it out on him when he was born, it's crazy cheap. And it's a locked-in rate for life. So as long as we (and he, after we die, which I'm hoping is the case) continues to pay the premiums, it's a guaranteed $50K in the event of his death, whenever that may be (I'm hoping he'll be at least 80, and I'll be long gone
So if he ever encounters some kind of medical problems that prevent him from acquiring any more life insurance, he'll at least have that.
It's something we can do now that costs us very little that could be of a huge help later if and when he has a family of his own.
And no, that's not the only use for life insurance.
OMG, that's horrible!
Life insurance is for the loss of income or the uncertain cost from the death of primary wage earner.
Do you have that kind of money in your savings account? I know I don't.
And no, that's not the only use for life insurance.
Life insurance is for the loss of income or the uncertain cost from the death of primary wage earner.
my DH is a firefighter. i think he has $50k tied to his work/union, double if he dies on the job or ad+d like mal's.
in addition, we got another $150k 30yr term for him just in case, since he is sole breadwinner right now, we have $150k on me also but debating lowering it, and then $25k for him, the baby, and me for funeral costs. our term policy also pays us back every dollar we put in at the end of the term which would be a nice chunk of change since we will be nearing retirement by then.
it's a lot of money to put out, but especially with his job, its worth it for peace of mind.
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And it's not just loss of income. Say you're the sole wage earner in your family, and your wife stays home with your two small children.
If something happens to her, you think you might not need much life insurance. But if something happens to her, you now have to worry about paying a GREAT deal of money for someone to look after your kids while you're at work all day. Full time daycare for a couple of kids can run up to a couple thousand a month.
That's a hell of an expense to suddenly take on.
It's a whole life policy. Because we took it out on him when he was born, it's crazy cheap. And it's a locked-in rate for life. So as long as we (and he, after we die, which I'm hoping is the case) continues to pay the premiums, it's a guaranteed $50K in the event of his death, whenever that may be (I'm hoping he'll be at least 80, and I'll be long gone
So if he ever encounters some kind of medical problems that prevent him from acquiring any more life insurance, he'll at least have that.
It's something we can do now that costs us very little that could be of a huge help later if and when he has a family of his own.
If something happens to her, you think you might not need much life insurance. But if something happens to her, you now have to worry about paying a GREAT deal of money for someone to look after your kids while you're at work all day. Full time daycare for a couple of kids can run up to a couple thousand a month.
That's a hell of an expense to suddenly take on.
my DH is a firefighter. i think he has $50k tied to his work/union, double if he dies on the job or ad+d like mal's.
in addition, we got another $150k 30yr term for him just in case, since he is sole breadwinner right now, we have $150k on me also but debating lowering it, and then $25k for him, the baby, and me for funeral costs. our term policy also pays us back every dollar we put in at the end of the term which would be a nice chunk of change since we will be nearing retirement by then.
it's a lot of money to put out, but especially with his job, its worth it for peace of mind.
Dealing with the death of a family member is horrible enough without adding "OMG, where am I gonna get all this money?" to the pile.
It's a horrible thing to think about, but you have to be realistic.
And like you, we also have term life insurance - some of it is term, some of it whole. Because in 20-25 years or so, we're not going to need nearly as much, because (hopefully) we will no longer have children to support. So we have a great deal more if something should happen to either of us in the next couple of decades, but still plenty after that.
We just want to make sure it'll be one less thing to worry about.
And it's not just loss of income. Say you're the sole wage earner in your family, and your wife stays home with your two small children.
If something happens to her, you think you might not need much life insurance. But if something happens to her, you now have to worry about paying a GREAT deal of money for someone to look after your kids while you're at work all day. Full time daycare for a couple of kids can run up to a couple thousand a month.
That's a hell of an expense to suddenly take on.
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I think about it, but only because I've experienced how detrimental it can be firsthand.