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Posted: 2/16/2006 3:05:07 PM EDT
Wife and I are 39, no kids (not having any), make a little under $100k. Not a lot of bills, have about $30,000 equity in a $135,000 house.

It would be a bit of a struggle if one of us died and the other had to pay all the bills, so I wonder if we both should get a life insurance policy.

If so, what type of policy (explain what the differences are), how much coverage, and where is the best place online to find policies for good prices?

Thanks!
Link Posted: 2/16/2006 3:16:36 PM EDT
I'm not an insurance agent & I don't play one on TV....

Keeping surviving spouse living in the manner to which they are used to seems to be the general line of thinking.

In your sitution, 100k in debt, I'd think $200k each would be a reasonable amount. That would clear the debt & plant you in the ground plus leave enough for your wife to shack up with a boy toy
Link Posted: 2/16/2006 3:39:48 PM EDT

Originally Posted By SouthHoof:
I'm not an insurance agent & I don't play one on TV....

Keeping surviving spouse living in the manner to which they are used to seems to be the general line of thinking.

In your sitution, 100k in debt, I'd think $200k each would be a reasonable amount. That would clear the debt & plant you in the ground plus leave enough for your wife to shack up with a boy toy



After putting up with my shit for 16 years, she'd probably just get some more cats and dogs.
Link Posted: 2/16/2006 3:43:20 PM EDT
There are a few certaintys in life & dieing is one. Question is when? If we knew that you would know the best life policy to get. Talk to your insurance agent to determine how much you need. It shouldn't cost too much since your young & hopefully healthy. Think of at least getting 200K to provide for the wife for a yr or two & pay off mtg. & any other expenses. She needs to be taken care of whether you die now or 20 yrs. from now.
Link Posted: 2/16/2006 3:49:12 PM EDT
Term life policies are usually the best bet and less money. Some investment type life policies are OK, I have a couple.

For cheap, contact the NRA. They have group term life agency that works with them.
Link Posted: 2/16/2006 4:11:10 PM EDT
Tag.
Link Posted: 2/16/2006 5:07:13 PM EDT
I have universal life insurance. I like it because you get cash value in your policy. If you have 50,000 of life insurance you get interest on your policy. This means when you die your beneficirary gets 50,000 plus the interest you have made on your policy.

You can put a certain amount each year without getting taxed on your money. You can also take money out after 3 years without getting taxed or having to repay what you took out. Universal life is more expensive, but is worth it in the long run. It's a good savings plan if you don't have one.
Link Posted: 2/16/2006 5:14:24 PM EDT
[Last Edit: 2/16/2006 5:42:53 PM EDT by clement]
Term is by far the best deal on life insurance, life insurance is to protect future income potential only (plus a few years of pension so you arn't totally screwed), and should not be considered anything more. Not being a true investment planner I can't help too much more, but someone who has both taken investment courses in college that mentioned life insurance, and who watches plenty of financial shows on TV, and listening to the radio- every one of them tell you to just get term and stay away from life.

Whole life as an investment is a very bad idea, your agent would be the one profiting the most from it due to the high commission rates.

Just invest the extra money you would have been pumping into a whole life plan and you'll be better off. (Don't just consider that extra money as money you can just spend on hookers and blow.)
Link Posted: 2/16/2006 5:24:45 PM EDT
My wife and I just got a new policy to add to what I have thru work.

We got a 20 yr term policy, $460k on me and $15k on her, cause I am the only one working for now. This is enough for her to pay off the house and still not have to work for a few years. We are paying $150 a month.
Link Posted: 2/16/2006 5:40:01 PM EDT
[Last Edit: 2/16/2006 5:44:16 PM EDT by JRBL1A1]
"HERE I COME TO SAVE THE DAAAAAAAAY"

As multi-line licensed insurance and finacial agent (home, auto, life, business, etc + investments), here is my advice to you:

1> Determine your immediate needs for life insurance (you die tonight, who needs how much money to have an *same* or easier life without your income)

2> Determine your long term goals. Do you want have cash to play with in 30 years? Or, are you using other vehicles to collect cash (IRA, annuities, mutual funds, etc).


There are two kinds of life insurance: Term and permanent. Term = set amount of time and ZERO amount of cash growth. Permanent = in force until death. Term is cheaper, but limited in length of time. Permanent (whole life, univerasal life, variable universal life) is for the full life cycle, gathers cash value, and is more expensive.

I usually suggest to my clients to buy term and invest into an IRA or regular investments. Keep things simple. Some agents or CFP will come up with some elaborate financial plans, but to me it just makes things more complicated for the insured.

Take your mortgage, any credit cards debt, auto lean, student loans, used lines of credit, etc.... and add it up. Have at least that much in life insurance. For both YOU and your SPOUSE. Seperate policies. Also, the difference in $500k and $200k in coverage is very little, usually. Dont be afraid to get "quote" on more than one amount. AND>...... forget shopping around. Just go to your local New York Life agent, or if you use a captive insurance agency (State Farm, All-State, FARMERS, Allied, etc), try them out for quote. Many times, you'll get further discounts on your home and auto insurace just by haveing life insurance as well (at least with FARMERS you do ).





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