How much life insurance do you and your spouse have? My DH has 600k on our policy and at work he would get 3x's salary in pay. I only have 200k, I am a SAHM. If something were to happen, he would probably have to rely on social security benefits too. We used Zander to obtain our policies and I highly recommend it.
I'm currently in the process of having a life insurance. 600k is really good! did you start you policy at a young age? also, explain to me, for people who do not know, what DH and SAHM means. I believe every single person should have a good insurance policy. Insurance really rocks!!
Hi, sorry for the delay in the response - DH means "dear husband" and SAHM means "stay-at-home-mom". Obviously I spend alot of time on message boards Honestly I don't think 600k is enough, but will his work it would add to be closer to a million. But even that might not be enough, because I would have to live on the interest alone. At 5% interest (Iwhich I might not even get!!!!) that would only be 50k which is less than our current salary. I have heard you shoudl have enough to live off of the interest alone.
I got term insurance about 12 years ago, and I had real bad experience with the insurance company trying to sell me permanent insurance instead, but later making hard the way to get my money back after cancelling my policy. Then later, my father passed away, and we had to face another calvary thing to claim the insurance benefits his life insurance police left. Based on these experiences I prefer simply to save money for the future rather than buying insurance.
I pay around $40 a month ($120 quarterly) for my life insurance. My policy covers basic protection, 5% mutual fund and family secure (which means the coverage increases if I marry or bear children but will still pay the same premium). In 10 years' time, when my policy matures, I can get around $5000. If I choose to claim a much later date, then I'd probably receive a higher amount.
Ask for my self, I am sure my insurance policy is not enough and I need to upgrade to premium so that I well have a better offer. For I can't afford yet.
My husband has a higher insurance coverage than me and we both have an insurance which is more focused on the investment side but I think it's still not enough in case something would happen to the other. We're planning on increasing our insurance coverage or buying another plan in the future not only for the purpose of insurance but also for investment.
My life insurance is about $100,000 worth and it's quite big enough here. But I took that insurance on the pretext that I would get that amount of money after 20 years of paying the premium. My husband does not agree with that because he said that life insurance here is not a good investment. What if the redemption day comes and the insurance company had already closed? That happens here so my husband has a point.
If you're thinking about the future, not just yours but also your family's, then having life insurance - no matter how big the coverage - will never be enough. You have to have other income sources and forms of protection. For instance, life insurance won't be able to cover your losses when you travel abroad. Nor can it pay for your children's tuition fees. Having said that, you have to cover as much ground as possible and not be single-minded with your investments.
All of you guys that have thought about your families care after you are gone have made a good choice. Not everyone thinks the way you guys do. First I do want to make sure everyone is clear on term insurance and what it does for you. Term insurance covers you or your family for a certain period of time. After that time there is no cash in the policy to be given to you or to get a loan on. It is wise to cover both adult members of the family even if the wife does not work as the cost of caring for a family, the work the wife does can be costly. There are many types of insurance that serves different phases of your life.
