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Message
Can someone give me Life Insurance Advice?
Posted on 2/19/13 at 2:37 pm
Posted on 2/19/13 at 2:37 pm
How much coverage would the Money board advise?
I am married with one child
I have a mortgage, and that is the only significant debt I have.
Should I factor in credit card debt into this?
What is the standard for deciding how much coverage I should get?
I am married with one child
I have a mortgage, and that is the only significant debt I have.
Should I factor in credit card debt into this?
What is the standard for deciding how much coverage I should get?
10
Posted on 2/19/13 at 2:52 pm to MaesterMullen
quote:
I have a mortgage, and that is the only significant debt I have.
quote:
Should I factor in credit card debt into this?
Well, which is it?
Depends what your wife makes, what's left on your house, if your kid needs tuition money, etc. Being married with a kid while having no life insurance is pretty risky.
I did a 30 year term through Zander. It's a $500,000 policy for less than $300 a year but I was young and healthy when I did it. I think I've read a good starting point is 10 x's your salary but again, if your wife makes good enough money, you might not need as much. If she stays at home, get more.
Posted on 2/19/13 at 2:54 pm to MaesterMullen
20-30 yr term.
Buy as much coverage as you feel comfortable spending each month.
I used to sell life ins and that's what I'd do.
Let customer decide.
Buy as much coverage as you feel comfortable spending each month.
I used to sell life ins and that's what I'd do.
Let customer decide.
Posted on 2/19/13 at 2:58 pm to MaesterMullen
How old are you?
How old is the kid?
Any plans to have more kids?
How old is the kid?
Any plans to have more kids?
Posted on 2/19/13 at 4:19 pm to MaesterMullen
Depends on what you want the life Insurance to do for you.
As a rule of thumb I always cover all debt, no matter what. I then usually suggest anywhere from $15-$30K for final expenses/funeral expenses (if you haven't looked at what those costs these days, it is ridiculous).
Other points to consider, does your wife work? If so, income replacement may not be as important (though still important), then if she doesn't work. Say you wanted to provide your wife with $3,000 per month of income for 5 years to help her ease into being the single parent, that would be another $175K or so of death benefit.
As for your kid, how old is he/she? If it were me, and I passed away, I would want their Education completely funded. If you know you plan on having more kids in a few years, I would think about going ahead and planning for that, because you don't want to be in a position where you couldn't get anymore.
Depending on how young you are, the policy duration for you will vary. If you are young, I would get the longest policy you can. I know many think that you won't need life insurance into your 50's and 60's, but I have seen WAY too many instances where it has been needed, but not able to be gotten, so it is always best to leave yourself with flexibility and options.
As CQQ said, GET A POLICY ON YOUR WIFE I would advise sitting down with an adviser, and have them help educate you on this stuff. If you are recently graduating, I'll almost guaratnee you know at least one person who has started to sell life insurance
Hope that helps some. If you have any other questions, please fire away.
As a rule of thumb I always cover all debt, no matter what. I then usually suggest anywhere from $15-$30K for final expenses/funeral expenses (if you haven't looked at what those costs these days, it is ridiculous).
Other points to consider, does your wife work? If so, income replacement may not be as important (though still important), then if she doesn't work. Say you wanted to provide your wife with $3,000 per month of income for 5 years to help her ease into being the single parent, that would be another $175K or so of death benefit.
As for your kid, how old is he/she? If it were me, and I passed away, I would want their Education completely funded. If you know you plan on having more kids in a few years, I would think about going ahead and planning for that, because you don't want to be in a position where you couldn't get anymore.
Depending on how young you are, the policy duration for you will vary. If you are young, I would get the longest policy you can. I know many think that you won't need life insurance into your 50's and 60's, but I have seen WAY too many instances where it has been needed, but not able to be gotten, so it is always best to leave yourself with flexibility and options.
As CQQ said, GET A POLICY ON YOUR WIFE
I would advise sitting down with an adviser, and have them help educate you on this stuff. If you are recently graduating, I'll almost guaratnee you know at least one person who has started to sell life insurance Hope that helps some. If you have any other questions, please fire away.
This post was edited on 2/19/13 at 4:22 pm
Posted on 2/19/13 at 7:25 pm to MaesterMullen
Rule of thumb is 10 times your annual salary. Generally, with your social security, that will cover your family after you're gone. Your wife won't be able to draw your social security once your son turns 18 (19 if still in high school), so that's where the investments she will have made with your policy payout comes in handy. Go with term-30 year. Don't let anybody talk you into a whole life, universal life, or decreasing term policy.
Posted on 2/20/13 at 6:52 am to MaesterMullen
Just get 1m term on both of you for 30. Doing it under 30 should save you a good bit. We didn't have our first until 32, still only about 1500 through Hartford
You'll sleep better
You'll sleep better
This post was edited on 2/20/13 at 6:54 am
Posted on 2/20/13 at 7:59 am to MaesterMullen
I have my life insurance policy through Alfa for 250,000 I pay 123 a quarter but I get almost all of it back when the policy runs out so its almost like a savings account
Posted on 2/20/13 at 9:24 am to MaesterMullen
I'll add one more thing. I would NOT buy 30 year term. I know that's he popular line of thinking here but statistics show its a bad move. You're going to over pay for something that you probably will not keep 30 years.
I usually write 10-15 yr term on clients.
I usually write 10-15 yr term on clients.
Posted on 2/20/13 at 9:37 pm to MaesterMullen
Get rid of credit card debt.
If you are a catholic in good standing, then join the Knights of Columbus and get their life insurance.
If you are a catholic in good standing, then join the Knights of Columbus and get their life insurance.
Posted on 2/20/13 at 11:53 pm to MaesterMullen
quote:
How much coverage would the Money board advise?
Enough that your wife will marry again for love.......not money.
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