I need new life insurance...

[TammyAlphabet]

My husband did die. Suddenly without any warning. I was left with two kids ages 10 and 16. Thankfully he did have some life insurance. And I have a great career. However, I shutter to think how much harder it all would have been if, on top of it all, I had to worry about money. If you have kids, get some insurance, on both of you. Make things easier on those that are left behind.

 

[ruadisneyfan2]

Also be aware that a terminal illness can eat through your life savings very quickly. If it comes down to using your savings to extend your life or leave it to support your family; well, I'd rather have the life insurance in place to make that an easier decision.

Good point. You just never know. Plus our 401k is so dependent on the stock market, if there should be some awful crash, we'd be concerned enough for our retirement, I wouldn't want to "lose" my life insurance then too.

My workplace offers Cancer policies. Do you have that option?

No but Afflack does. It's not specifically cancer that concerns me. There are many other diseases too. My SIL was recently diagnosed with MS. I'm guessing she probably couldn't get life ins. if she tried.

 

[ruadisneyfan2]

My husband did die. Suddenly without any warning. I was left with two kids ages 10 and 16. Thankfully he did have some life insurance. And I have a great career. However, I shutter to think how much harder it all would have been if, on top of it all, I had to worry about money. If you have kids, get some insurance, on both of you. Make things easier on those that are left behind.

I'm so sorry.

Maybe your situation isn't common or likely but still, it worries me. If I'm deep in grief the last thing I need is financial worries too. For $30-50 per month (less than what my coworkers spend at Starbucks) I'd have peace of mind for dh and kids.



Dh's ins is only $25/mo because we bought it when our first child was born and he was much younger. His employer at the time didn't offer it so we bought private ins.
OTOH, I felt secure with my employer's plan until I realized how many coworkers had to quit or got fired due to serious or chronic illnesses. FMLA only protects one's job for 12 weeks per year. My sister easily exceeded that with her breast cancer treatment but her employer didn't count a lot of time she missed or came in late. My employer wouldn't be that nice.
I just dont't feel like I can rely on my current ins to be there if it's needed.

 

[mks18412]

I've had a very plentiful life insurance plan through my employer, a hospital. I've been working there for 23.5 years. I got to thinking today how if I died suddenly, I'd be covered just fine. OTOH, looking at so many people with cancer, I figured if I ever did get cancer, chances are I wouldn't still be a hospital employee at the time of my death therefore it's really not covering me fully. After all, who knows anyone who has passed away due to cancer, and still is considered an active employee at their job?

I don't even know where to start looking.
We bought dh's policy like 15 yrs ago (I don't even recall where the actual policy got to.)
I'm usually very organized with a large file cabinet but for some reason when the kids were babies I kind of lost all those organization skills.
They do still debit our checking account monthly and I recall the name but I digress. I suppose a call to them would be a good start.

Which life insurance company would you recommend?
Any tips/advice would be appreciated.

Have you looked into Zander insurance?? Dave Ramsey talks about them all the time.

 

[ruadisneyfan2]

Have you looked into Zander insurance?? Dave Ramsey talks about them all the time.

I'll look into it.

Rereading my OP I did mention cancer several times. Really, it's any long disease process that would apply. Somehow it just hit me, like a lightbulb turned on after all these years, that I'd have to still be an employee at the time of death to have coverage.


Thanks everyone!!!!

 

[ceecee]

Yes, those with minor children need life insurance. Retired folks with no debt and money in the bank may not.

Our financial advisor (my DH!) says the same thing. He also advises term vs whole in a lot of cases. That being said I have a paid up small whole policy that my mom purchased for me as a child. It's enough for funeral expenses. If you kids are older and you have little debt obviously it isn't as important. So it really depends on what phase you are in life wise.

 

[runwad]

OP about 6 years ago when we got our term policies for the same reasons you are worried about, not having it available at work, I went to this site and compared quotes:

http://www.accuquote.com/

I believe our term policies are through Genworth. And I think I either read about this site in money magazine or from Susie Orman's show. Good Luck

 

[lost*in*cyberspace]

I'll leave a significant estate behind if we both died today - and my kids are 14 and 15 with fully funded college funds - my parents would take them in and there would be ample money to support them through college and leave a trust available for them when they are 30. Plus, as minor children, they'd be entitled to social security survivor benefits.

I'd still have life insurance, but that's me. SS benefits only are paid to your surviving children until they reach age 18 (or 19 if they're still in elementary (!) or high school).

Keep in mind that life insurance payouts are not taxed, nor can they be garnished to pay an estate's debts.

 

[crisi]

I'd still have life insurance, but that's me. SS benefits only are paid to your surviving children until they reach age 18 (or 19 if they're still in elementary (!) or high school).

Keep in mind that life insurance payouts are not taxed, nor can they be garnished to pay an estate's debts.

I know about taxes and social security - I'm an accountant by training (and a trophy wife by profession nowadays). My kids get cut off when they are 18 if they aren't in school - that's the deal - I'm not worried about providing for them past that point - social security and I are in agreement, and they have fully funded 529s - room board and tuition and any "reasonable" school - including trade school for my son. I have no debts other than a mortgage. The mortgage is a small portion of the worth of the house, and the house would be sold if we were both to die. Most of my net worth has already been taxed - the exception would be the tax burden on the 401ks, and the estate is below the estate tax thresh hold. My insurance is good and I'm in a state that pre-Obamacare I could get cancer and not eat through the estate, even if we couldn't work (we buried my brother in law two years ago after a two year fight, so I have a pretty good idea of how much a cancer diagnosis would cost out of pocket. My sister is a breast cancer survivor as well). I need about $3k each to cremate us, and another $1k for a service. (yeah, have those numbers handy as well, unfortunately). With almost any terminal diagnosis, SSDI kicks in pretty automatically and would be sufficient to pay insurance premiums and out of pocket expenses. Even after taxes on the 401k and the capital gains taxes due on the stock portfolio, a lengthy battle with cancer, paying off any incidental debts, and excluding the 529s, there will be a seven figure estate - I think my parents can raise my kids for another four years on that (plus social security survivor benefits - which frankly would more than cover the expenses of my kids) with money left over - that we have instructions to put in trust with two trustees - friends we know and share values with - they won't let the kids starve, but they won't let them run out an buy stupid expensive cars.

I used to work in insurance - its a pretty high profit enterprise. Don't buy insurance you don't need because its functionally gambling in Vegas, the house has the odds in their favor. I don't need life insurance.

Now, that could change, if my husband looses his job and neither he or I find work for a few years, we'd spend down that net worth - but honestly, there are a few years worth of our spending available to us before it would be necessary. We've saved at least 40% of our income for almost 15 years.

 

[ruadisneyfan2]

I know about taxes and social security - I'm an accountant by training (and a trophy wife by profession nowadays). My kids get cut off when they are 18 if they aren't in school - that's the deal - I'm not worried about providing for them past that point - social security and I are in agreement, and they have fully funded 529s - room board and tuition and any "reasonable" school - including trade school for my son. I have no debts other than a mortgage. The mortgage is a small portion of the worth of the house, and the house would be sold if we were both to die. Most of my net worth has already been taxed - the exception would be the tax burden on the 401ks, and the estate is below the estate tax thresh hold. My insurance is good and I'm in a state that pre-Obamacare I could get cancer and not eat through the estate, even if we couldn't work (we buried my brother in law two years ago after a two year fight, so I have a pretty good idea of how much a cancer diagnosis would cost out of pocket. My sister is a breast cancer survivor as well). I need about $3k each to cremate us, and another $1k for a service. (yeah, have those numbers handy as well, unfortunately). With almost any terminal diagnosis, SSDI kicks in pretty automatically and would be sufficient to pay insurance premiums and out of pocket expenses. Even after taxes on the 401k and the capital gains taxes due on the stock portfolio, a lengthy battle with cancer, paying off any incidental debts, and excluding the 529s, there will be a seven figure estate - I think my parents can raise my kids for another four years on that (plus social security survivor benefits - which frankly would more than cover the expenses of my kids) with money left over - that we have instructions to put in trust with two trustees - friends we know and share values with - they won't let the kids starve, but they won't let them run out an buy stupid expensive cars.

I used to work in insurance - its a pretty high profit enterprise. Don't buy insurance you don't need because its functionally gambling in Vegas, the house has the odds in their favor. I don't need life insurance.

Now, that could change, if my husband looses his job and neither he or I find work for a few years, we'd spend down that net worth - but honestly, there are a few years worth of our spending available to us before it would be necessary. We've saved at least 40% of our income for almost 15 years.

I see your point but I wonder what percentage of Americans are in your situation. I'm guessing very few. Even if we never ate out, vacationed, etc. there is simply no way we could afford to save that much of our income. For us that would be like living one one paycheck. We would have to drastically lower our standard of living to well below what we're accustomed too and we don't live extravagantly at all.

 

[crisi]

I see your point but I wonder what percentage of Americans are in your situation. I'm guessing very few. Even if we never ate out, vacationed, etc. there is simply no way we could afford to save that much of our income. For us that would be like living one one paycheck. We would have to drastically lower our standard of living to well below what we're accustomed too and we don't live extravagantly at all.

More than you think. If you look at early retirement websites you'll realize that there are thousands of people saving 40% of their incomes - and their incomes are not necessarily huge.

But that isn't the point here - the point I was making is evaluate if you even NEED life insurance. The insurance is a huge profit center (thank God, some of my best stocks are in the insurance sector). For someone who has been saving for years and has a good start on a 401k, whose kids are older and will be eligible for social security survivor benefits - it may not be a necessary expense. And I'm betting that covers quite a few of us.

 

[Jeff_G]

That has really changed under the ACA. We were fortunate to live in a state with some of the ACA provisions already in place under state law when my brother in law had terminal cancer. His out of pocket max was $6k a year, and his insurance (he was single - so it was just him) was less than $4k a year. He burned through his out of pocket max on the first chemo treatment - but it total, for millions of dollars of treatment over two plus years, he paid about $30k in insurance and medical expenses.

You are referring to health insurance which is quite different from life insurance. Yes health insurance is more portable now, but I am not sure ACA and HIPPA applies to employee group life insurance.

 

[crisi]

You are referring to health insurance which is quite different from life insurance. Yes health insurance is more portable now, but I am not sure ACA and HIPPA applies to employee group life insurance.

No, I'm responding to the point that being sick can eat up your assets. That's far less likely now under the ACA, because there are affordable plans (for definitions of affordable where you have the sort of assets that would make life insurance unnecessary) that no longer have lifetime maximums and cannot drop you because you have cancer.

You may lose income, which is why you have long term disability insurance - assuming you need it. But one of the big drivers for the ACA was to decrease the occurrence of medical bankruptcy from medical bills themselves.

 

[nalajms]

But that isn't the point here - the point I was making is evaluate if you even NEED life insurance.

I think the definition of NEED will be very different for each person, and not always based on financial health. My DH had a $1m term policy before we met. He had a house w a small mortgage, savings, 401k, and no kids. He did have 2 dogs that he wanted his family to take care of if he died. It was a bit excessive, but he had the peace of mind and felt the premium he paid was worth it.

There's also a site that's called term4sale that gives you an estimated price across numerous companies without plugging in personal info.

 

[ruadisneyfan2]

I only brought up my sister's breast cancer because if I missed that much time from my job I would be fired. There aren't many jobs in my field so the odds of finding another soon are slim. My original point wasn't about copays though my sister ended up paying almost $11,000 by the time it was all done. Her copays are $25-45 depending on who she sees.

 

[MillauFr]

My DH had a $1m term policy before we met.

Why did he have life insurance if he had no dependents?

 

[nalajms]

Why did he have life insurance if he had no dependents?

For his 2 dogs One had addisons, which meant monthly shots. The premiums were less than $1000 a year so he felt it was worth it to financially protect his dogs.

 

[lisaross]

I just went thru Zander for my husband and I. My advice is start shopping around now. The older u get the more expensive - how long does your husband have left on his? Look into renewing now or getting another policy because it does go up with age and blood work is needed. My boys are 12 and almost 14. We just took a 15 year policy.