(Closed) LIFE INSURANCE or not?

posted 8 years ago in Money
Post # 3
3539 posts
Sugar bee
  • Wedding: August 2010

I have life insurance. Simply because my Uncle is an insurance broker, and for my 18th birthday he signed me up. I have never considered that Im really ‘worth’ in dollars, as in I dont have many assets and such. But the insurance covers funeral costs if I die and my next of kin will be my FH gets a sum of money allotted for 10 years after my death. I have comfort in knowing that my family arent with the burden of sharing the cost of the funeral and that FH will be taken care of so to speak for awhile, but death is still a scary thing tho. I pay $5.00 a week for this cover. But I think its worth it. However FH thinks its useless as I am 24.. and that you should only get life insurance if your 30 or over. Which I think is nonsense.



Post # 4
806 posts
Busy bee
  • Wedding: August 2010

I think term is generally the way to go.  It can make sense to buy early while you’re young & before you develop any health conditions, because the monthly cost to you is much lower vs. if you put it off 5-10 years. 

Right now Fiance and I have some free life insurance provided by our work (I think the amount is like 2x our salary or something like that).  We have no kids or significant debt yet so this seems like plenty.

In the area where we live, we’ll need both our incomes to carry a mortgage on our 1st house.  When we get a mortgage, we’ll buy term insurance to bring up the amount – so if someone died, the other would at least have the option of staying in the house if they wanted to.  We’ll probably do a 20 or 30-yr term depending on the price difference (long enough for any kids to be mostly raised and for the house to be mostly paid off).  I’d like us each to have a 500k policy – maybe more depending on if we have kids/how many.

If you’re good about saving for retirement, don’t forget to consider those funds because you won’t be needing them if you die and they can go to help support your kids/partner.  So when I am age 50+ I don’t think I’ll need to have such heavy duty life insurance any more.

Post # 5
1051 posts
Bumble bee
  • Wedding: April 2010

Fiance has 2 cash-value whole life policies which, while I understand the benefits when viewed as a vehicle, I don’t totally agree with (maybe if it were just one?).  Make sure you def sho around and have EVERYTHING, whether CV, valiable or term explained you to in plain english.  More complex policies can offer plenty of benefits but often have fees attached down the road.  You may be fine with the fees, but at least make sure you know when/where they are.

One rec I would have is if you go through a financial advisor, opt for the fee-only kind.  Fiance was using a “friend” who worked comission-only, and I personally feel this is why he ended up with 2 rather large policies.  Fee-only costs more upfront (and is what we use now) but you can be a bit more confident in their fudiciary advice.

EDIT: Rereading this, I think I come off a little anti-CVWL.  Fiance is an investment banker, so he wouldn’t have bought something completely offbase.  His policies certainly have use for him/us and were sound decisions.  I just personally, as someone not in the finance world, don’t understand why he has 2…The cash value of his policies grow tax-free, can be borrowed against, are great for estate planning and will help stagger our tax burden when we retire.

Post # 6
18643 posts
Honey Beekeeper
  • Wedding: June 2009

Term insurance is a better idea.  It is cheaper than whole life and you shouldn’t need insurance for your whole life anyway.  Only get insurance if someone actually needs the income that you make.  If your husband makes a decent living and you have savings, you might not need insurance in order to pay the bills if something were to happen.

Post # 7
2208 posts
Buzzing bee
  • Wedding: July 2010

Term is almost always the way to go.

Personally, I think you only need life insurance once you have a responsibility in your life that would need help if you passed away. Spouse not working, a mortgage, kids, etc. I have a small policy through work right now that would cover the mortgage if I died.

Post # 8
1701 posts
Bumble bee
  • Wedding: August 2010

My Mom says always have enough to at least cover what you owe on the mortgage; that way if you go, your SO can keep the house. 

Also she says that when you are young, it is cheap.

PS> My mom is in the insurance business

Post # 9
4001 posts
Honey bee
  • Wedding: June 2010

I’ve been considering it too.  I just don’t know the first thing about it.  I’m going to do the research after the wedding.  Really, my only concern is that I don’t want to leave my Fiance stuck with a bunch of bills and caring for children on one income.  God, that is a horrible thought. 

Post # 10
1011 posts
Bumble bee

If you are young and planning on having children, get life insurance now.

I do not have it, but I am in my 40s.  No one depends on my income (FI would not need my income, but if we end up with an expensive house, it might be necessary–right now my assets would cover my mortgage).

It is important that both of you get it, not just the primary earner.  Assuming you become a stay-at-home mom, if something were to happen to you & you had kids, SO would have to pay someone to do the things you were doing.  So, that’s why both of you need it.

I totally agree with CVbee!

Post # 11
2144 posts
Buzzing bee

My husband has it. He’s had it for awhile because his cousin died young and his mom flipped out ant got worried. I personally don’t feel it’s really necessary since we don’t have kids or a house (if he died, I would go back to live with my family in Indiana, and I dont really contribute to bills or anything so if I died he would still be ok too), but he has it. I’m not sure if it’s term or whole life. It’s very expensive, imo. It’s about $600ish every year. I guess if he were paying it monthly it wouldn’t seem so bad, but it’s a yearly lump payment. He gets his through Metlife.

Post # 12
2239 posts
Buzzing bee
  • Wedding: May 2011

I have it through my job for two or three dollars a week. But I know sometimes credit unions offer up to a certain amount for free to their members 🙂

Post # 13
1184 posts
Bumble bee
  • Wedding: June 2010

There’s a joke that everybody makes when they talk about life insurance (death insurance)… 

They say that they don’t want life insurance because their wife or husband might end up murdering them for the money… 

Chances are that won’t happen. Although it did happen to Lacey Peterson. Have you bees heard about that case. Lacey Peterson was pregnant and murdered by her cheating husband for the life insurance payment.’

I have life insurance for myself because in case I die prematurely my mother won’t be stuck with having to pay thousands of dollars for my funeral. I have a term insurance policy. If you get it while you’re young and healthy it will be less expensive. I get mine from Primerica and I pay about eleven dollars per month..

I think you should get it if you have dependents, like children….

Post # 14
257 posts
Helper bee

I only have life insurance because its through my work.

Post # 15
2889 posts
Sugar bee

I have a term policy my mom signed me up for whhen I finished grad school and pay about $500 per year and Fiance has one offered free through his job. We don’t own anything or have kids so it’s more of a safety net than anything. I guess we’ll consider other options in the future but for now we just hope we won’t have to use it. Fiance listed me as his beneficiary but my mom is still mine since she opened the policy right about the time we started dating, I tease him that he can’T get his name on it until after the wedding!

Post # 16
687 posts
Busy bee
  • Wedding: December 1969

I have insurance through my job, but I need to get separate insurance since I’m a mom, which I’ll do if/when I leave my current job.

Even if you don’t have kids, I don’t think it’s necessarily a bad thing to have. At the very least, it can cover the cost of a funeral so your family doesn’t have to pay out of pocket.

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