Life Insurance. I Have None. Do You?

Here's what my dad, a life insurance salesman for more than 20 years, said:

"Right this minute, buy as much term as you can afford. If he owns a house, he needs 30-year term to cover the mortgage. Needs 20-year term to cover the baby's education. If his wife is not working outside the house, there needs to be enough to replace income, until child is old enough for mother to go back to work. Minimum 20-year."

For $500,000 of coverage at 20-year term, it comes out to $345 in California. I think you're up in Canada, right? Want to PM me and shoot my dad some emails?

 

Some hours that covers it; other hours, not so much.

$345 per month? That doesn't seem right.

 

Whoops, meant per year.

 

If you're John Goodman, perhaps.

 

The policy I have is the same one my parents took out on me when I was little. Because it was taken out at such a young age, it's still only $10 a month for a $40,000 policy. If nothing else, you could be doing them a favor by getting them a cheap policy now that they can carry for the rest of their lives.

Mr. G has no policy, so I can't plot anything bad. Oh speaking of plot, this is totally morbid, but I have two plots for the two of us with the rest of the family plots. It was kind of a now or never thing. They wanted to rapidly sell the plots all the way down the hill, and I wanted to ensure I'd be near my grandparents and where my parents will one day be.

 

We have $500,000 on myself and $500,000 on my wife. She takes care of it, so I do not know what it runs us. We both work and make about the same amount of money.

Our logic is if anything happens to either of us, we will take the money and pay off the mortgage, put away for Lil 93s college and have some on the side. We do not want to have where she lives changes or what her future will be because we do not have the money for it.

Oh, I'm sure that all of us who have children also have a will.

 

Oh, my job has some insurance on me as do some of the organizations I belong to now.

I think one has a one-year salary payoff and a two-year salary payoff if I die on the job.

 

Presuming you're super preferred non-smoker, it is. The state wouldn't matter, anyhow. Your occupation and hobbies might.

 

Don't know yet.. haven't gotten the policy.

 

I didn't expect to see a post like that from Alma. He is on it!

 

Your planner may be incorrect.

First, unless you can justify 2 million (and maybe you can) an underwriter's gonna go WTF? the minute they see a 2 mil app run across their desk. You'd be making beyond six figures to go in that direction or be a key man of a business or something. Then, prepare for a battery of tests. EKG, treadmill, HOS (blood, not urine) telephone interviews, APS (all your doctors' records). all for a term that runs out in 20 years.

Smarter to consider a UL you can overfund or an annuity you don't have to touch. People are spooked by annuities because they don't understand them, but they can really pay huge dividends.

 

while they are good, annuitiies are taking a hit like everything else in the investment world. how much mine had dropped from the last quarter "spooked" me when i got the statement this week. depressing.