Life Insurance

[Jeff964]

Guys, I need your opinion regarding getting a life insurance.

I am 28 and currently married with no kids. My wife has two insurance policies while I have none. Several times my wife asked me to look into getting an insurance for safely and future prosperity.

My question is do I need a life/retirement benefit insurance. How many of you have a life insurance and the reason why you have it.

Any subjective or objective opinions greatly appreciated.

[Jeff964]

Forgot to mention, I don't smoke, do drugs, or drink excessively; I get my high driving my Porsche.

[turbo6bar]

I think your wife wants insurance for her safety and future prosperity. Do you have debt? Can your wife live without your income?

I do not currently carry insurance. I'm single and have little debt. As my real estate investments grow, and I carry more debt, I plan to acquire enough insurance to cover those debts. I think you should review your life insurance needs periodically, and adjust the coverage accordingly.

Just my opinion. I'm not an expert by any means.

Jurgen

[RickC]

You ought to get some expert advice I'm afraind. And I'm no expert, just older & with 3 kids.

I'm pretty sure:

Your wife can get your Social Security benefits during retirement.

If you have kids, your wife/minor kids can get Social Security benefits immediately.

I have enough insurance to keep my family's life more or less financially unchanged through to retirement. First got term (the kind that expires after a certain point.) Now I have some through work. If I took another job, would need to reevaluate. I'm 37 with 3 kids. Oldest one is entering college this fall; youngest is 20 months!!!

Idea of the cheaper term insurance is that you can likely lower the insurance amount as you grow older, college is paid for, and your retirement plans grow. At retirement, when prices go sky high, you can get rid of it because (ideally) you don't need to save/find any more money (i.e., save all you can through the years!!!)

[Jeff964]

Thanks guys for your valuable comments.


I don't have debt and I have two insurance proposals from a bank and from a friend who's an insurance agent. I am asking older and wiser people like you guys, especially married ones, whether or not its useful or logical to get an insurance.

[RickC]

It's tough to think about too much, but you need insurance as you grow older - and a Will too, as your finances become more complicated.

A good friend died suddenly of a heart attack a year ago. He had small kids and his wife had to scramble to sell his dental practice. So I pulled out my Will and read carefully to make sure my younger two were covered since it was written before they were born. I also upped my insurance (though I'm fit and in good health).

Most of us never know when our number will be up. Look at it every few years or so. And then forget about it and treat your body well - like you're going to live forever!

[JavaBrewer]

Term insurance at your age is very cheap. The longer you wait the more expensive it gets. If you plan on having a family you need to look into insurance now. I lost a co-worker to a heart attack several years ago. He had no life insurance other than a single $35K policy from the company - his wife had to scramble to pay the bills - including his funeral and burial.

I have a wife, 2 kids, a mortgage, and all the associated expenses. It would be very short sighted for me to not carry life insurance. Discuss with a professional the amount of coverage you should consider.

[id10t]

Look around at what some clubs/group offer for insurance as members. For example, as a member of the NRA, you get for free a $10k accidental death/disability policy. Not bad for a minimal investment per year ($20 IIRC). Also, check what your employer gives you. At my last job (Columbia Healthcare/HCA - corporate bstards), I was given a policy that would pay 2 years of my salary free, and that was in a low-end non-important position. My current employer (community college) gives me the same deal, but for a little $, I can extend it to up to 10x my annual salary.

[Sarah]

My husband and I both have life insurance and the yearly cost is not that expensive. We don't have kids but thought it was a good idea to have it. If something was to happen to either of us...we would not have the double income anymore that is needed to pay all of our bills. It would also help to pay off any large debt (i.e. the mortgage, home equity loan, etc...).

I would do it. It gives you more peace of mind.

[rcecale]

"Life insurance" is somewhat of a misnomer . What you're actually insuring is the "Quality of Life" of those who are dependent on you right now.

The way it was explained to me is that you should want your survivors to want to monetarily be able to at least continue with their accustomed station in life. It doesn't necessaril have to make someone rich, but if it provides the means to pay off a home mortgage and some, if not all, of your consumer debt. You can also set it up to be paid out incrementally, by setting it up to go to a trust, for something such as a college education for a child or someone you just care about.

Your survivors will have enough to worry about, in the event of your untimely demise. They shouldn't have to be worrying about how they will make ends meet, should you not be available anymore to contribute.

Taking care of your own while you are around is what we do. Taking care of them after you're gone is the true act of love.

Randy

[nostatic]

My wife and I have both increased our life insurance policies to cover the debt on our house. That way, if one of us died, the other one would have a huge chunk of money to either pay off the house entirely, or be able to make payments for quite some time. The idea is that the loss of one income doesn't put the family out on the street. I also just got long term care insurance...it is cheap to start when you're young, and again, while it won't pay all the bills if something bad were to happen to me, it at least would make a dent in the expenses.