Life Insurance. I Have None. Do You?

I'm almost 33 years old. I'm married. I have a 10-month-old daughter. I have no life insurance.

My parents began bugging me to get some when I was, oh, about 22 years old. I never have.

I have zero knowledge of what I need, how much it costs, etc.

Any advice? Like, how big of a policy (pay out?) would I need to cover my funeral and make sure my wife and kid(s) will be okay without me?

Also, I don't have a will.

I suck.

 

pete - go with 10 times your annual bring-home income. if your wife works, same deal. if not, she should still have a smaller policy - what she does at home, etc., does have monetary value when it's all boiled down. kiddo should have one that will basically just cover funeral, etc.

 

No, but I'm single.

I am working on a will since I'm having some heart-related issues.

 

Do they offer any through work? If so, I would get all you can.

Otherwise, I think you should look to get a term policy -- maybe 20 years. And figure it would cover your wife and daughter at least till the little one is in college.

It shouldn't be that expensive at your age.

You really need to get some. It's not for you, you know.

Oh, and I'm worth a lot more dead than alive.

 

Exactly. I think have a very small policy through work. It would cover the funeral and my wife's second marriage, but that's about it.

And "term policy" is a term I hear all the time. So what happens if I get a 20-year term and it "expires" when I'm 53? Do I pay through the nose then because I'm closer to death?

 

if you're 53 with all the kids out of the house and the mortgage paid off, you really don't need life insurance besides a small amount to cover funeral costs. or you could prepay the funeral costs.

 

it is relatively inexpensive. especially if you already have multiple policies.

stay away from cash value - most people get wrangled into these things and they are an awful 'investment.' and what lots of people don't realize is this: the money you save up in there is gone once you kick. you have thousands saved up in that account on an awful percentage of return, you can take it out to make a car payment or buy a new wii or whatever. but if you die and your wife tried to get it, not gonna happen. the policy is just worth face value - whatever has been saved in addition is a loss.

ace is right - go with a 20-year, level-term policy. It might be like 8 or 9 bucks a month. invest the extra that would have gone toward the cash value in a mutual fund and in 20 years when the policy expires, you won't need life insurance because you'll, hopefully, be set with your investments.

 

Thanks for starting this thread, Pete. When I took a month off when my son was born, I had three things I wanted to get done before returning to work: Assemble an emergency preparedness kit, draft a will and buy life insurance. I accomplished none of it.

Of course, now I am about to be unemployed, so I'll have a lot of time on my hands!

 

WTF?

 

No prob AB. But don't thank me, thank the fine folks who offer up advice. I have no clue about any of this, which is why I asked. I'm glad and I and they can help you!

By the way, it's amazing what a baby makes you think about and change isn't it?

 

My friend, who started selling insurance when he graduated from college, told me many years ago that term insurance was for suckers. I took his word for it.

 

See, I've heard this too.

So there is term and what else?

And what's the difference? Pros and cons of term and, well, whatever else?