Welcome to InsuranceForums.info!   

Advertisments:


Sponsor Links

Affordable Pet Insurance
Travel Insurance Comparison


Do You And/or Your Child's Other Parent Have Life Insurance?

Funeral Insurance, Term Insurance and Burial Insurance

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Ixaka » Thu Sep 21, 2017 4:48 am

Most parents would benefit from life insurance. But if you buy, be very careful with it.


Life insurance should serve only one purpose ? reimburse survivors for the value created by the person who died. Pay attention to my use of the word ?should? because many insurance companies market ancillary benefits of questionable value. Term insurance makes the most sense, but insurers would rather sell you whole life, universal life, variable life, or other policies with investment vehicles built in.


Entire books have been written on this subject, and I won?t reinvent the wheel. I will, however, explain why you should stick to term insurance, then address how much you should purchase.


You can obtain insurance that grows in value over time or pays dividends. But if your goal is growth of principal or the creation of income, you can do that more effectively with stocks or bonds. Insurance with an investment component will almost certainly generate lower returns that other types of investments, in part because insurance companies layer on a lot of fees.

The insurance business teems with scams, but term life insurance is both simple and rational. You pay $XX per month, and if you die, your beneficiary receives $XXX,000. No investment component, just a death benefit. When you stick to term insurance, you can save a lot of money. A healthy nonsmoker in his early 40s should be able to obtain $500,000 of coverage for $35 per month. That?s not much to pay for peace of mind.


Because term insurance is cheap, I would advise just about every parent to purchase some. Unless you are wealthy enough that your child?s lifestyle would not change in the event of your death, owning life insurance makes sense.

Many people just buy policies of $25,000 or so to cover funeral expenses. But life insurance is best used to help your spouse cope with living expenses after your death. For breadwinners, I advise insurance equal to eight or 10 years of income. If you support a child making $50,000 per year, your spouse would probably have financial trouble if you died tomorrow. Stay-at-home parents often have to go to work, working parents find themselves drowning in the costs of a lifestyle that requires two incomes. A $500,000 windfall, if invested wisely, could either cover several years of household expenses or enable the surviving parent to work only part time rather than full time for as long as the children are living at home.

Stay-at-home spouses probably don?t need as large a policy as the breadwinner, but they should be careful not to undervalue their contribution. My wife and I purchased a life-insurance policy on her before she went back to work ? in fact, she insisted on it, because she knew that her loss would leave me with some very difficult choices to make.


Recent studies regarding the market value of a housewife?s work suffer from inaccurate social assumptions and bad math. But reality suggests that if a caregiver dies, either the children will end up in day care, or the breadwinner will have to spend a lot more time at home. Both changes can be stressful, and life insurance can provide flexibility.
Ixaka
 
Posts: 49
Joined: Wed Mar 26, 2014 5:02 pm

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Crosbie » Thu Sep 21, 2017 11:05 am

Yes, like someone else said with me being a SAHM it is essential that we are covered on both ends. My husbands job provides him with $250,000 and me with $100,000 for a very reasonable price. We have separate polices that we bought right after we got married as well that are for $150,000 each.
Crosbie
 
Posts: 41
Joined: Wed Feb 26, 2014 8:16 am

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Tahbert » Thu Sep 21, 2017 7:11 pm

Yes, I have life insurance.
I have no idea if my ex-husband has any.
When we were married he didn't.
I also have a life policy on my daughter.
I just have a whole life policy that my parents bought for me when I was a baby.
It's worth about $30,000 today.
I should probably have a term life policy as well to pay off my mortgage if something happens in the next 15 years, but I can't afford another bill at the moment.
Tahbert
 
Posts: 47
Joined: Sat Feb 22, 2014 3:50 am

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Donnchadh » Thu Sep 21, 2017 8:06 pm

No -- we could never afford it. I fed my kids lots of brown rice and green veggies trying to keep them well. I also gave them little sugar or dairy, so they did stay very healthy thank goodness. I won't have health insurance until I reach retirement age and get SS.
Donnchadh
 
Posts: 76
Joined: Mon Jan 13, 2014 12:16 am

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Arthgallo » Fri Sep 22, 2017 9:06 am

No we didn't have any. How I wished we did. As I said in my answer about a will this is something you also need. I lost my home and a lot of other things too. I have just started to putting the pieces back together again. It has been a year now and we are just starting to settle the law suit. I do not wish this on anyone. Please get a will and life insurance. It not for you ot for your love ones you leave behind.
Arthgallo
 
Posts: 63
Joined: Fri Jan 03, 2014 4:28 pm

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Alfie » Sat Sep 23, 2017 6:19 pm

Yes, we both have insurance policies on us.
Mine is a term policy, but my husbands is one where the money is invested and we can borrow against it.
I believe we each have 4-5 times our yearly income at least!!
Alfie
 
Posts: 49
Joined: Fri Jan 03, 2014 10:54 pm

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Pauloc » Sat Sep 23, 2017 7:48 pm

Yes, both myself and my husband do.
I forget the amount.
But I got rated super fit - he only got fit - whoo hoo - it makes a pretty big difference in payment.
Pauloc
 
Posts: 52
Joined: Tue Jan 14, 2014 12:02 pm

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Firman » Sat Sep 23, 2017 10:57 pm

lol off of my questions....lol I haven't asked questions on here in a while so i started asking tons..lol

we dont have life insrurance yet...but we will even get some..when my ex and i were married i had 200,000 for being his spouse cause he was in the marines...i think that is a good amount! of course at the time his was 400,000 and i think they raised it last year...
Firman
 
Posts: 43
Joined: Thu Jan 16, 2014 5:48 pm

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby eugene » Mon Sep 25, 2017 2:41 pm

Yes. I feel it is a must for stay-at-home families. We just have enough to get the kids in school before I would need to get a job. How much that is for any given family depends on how much money the working parent makes.
eugene
 
Posts: 77
Joined: Mon Jun 17, 2013 1:12 pm

Do You And/or Your Child's Other Parent Have Life Insurance?

Postby Gavyn » Mon Sep 25, 2017 4:54 pm

I hvae a $350k policy against my life that goes to my son if I die, it costs me $13/month, I calculated monthly child support from his age now to 18, a car, one year of car insurance, monthly allowance from his age now to 18, college and grad school plus padding for travel abroad and a hosue payment.
Came to $350k...so if I die, he is all set
Gavyn
 
Posts: 52
Joined: Thu Jan 30, 2014 8:04 pm


Return to Funeral Insurance

 


  • Related topics
    Replies
    Views
    Last post