term & accidental insurance ?

[dreamin_disney]

How much should i have of each for me, spouse and dd?

How many of you have it and any tips or opinions about it. Thanks

btw- dh and i were talking and we figure enough for burial cost, paying off home loan . If something was to happen to me he would be ok on his pay. If something was to happen to him I would have a hardtime finacial because I dont make enough a month.

 

[msmayor]

No one here can or should tell you how much you need.

The amount can only be determined with a good review of your financial picture now: current salaries, estimates of future salaries, savings (both regular and retirement), current debt levels, ages of all involved, and what expenses need to be covered.

There are lots of 'calculators' out there on the net...here's one you can try:

http://www.smartmoney.com/personal-finance/insurance/how-much-life-insurance-do-you-need-12949/

 

[brergnat]

The basic way to figure it is:

10 year's worth of your salary, at least. Be aware that most insurance companies will put a cap on how much an individual can have TOTAL in coverage (counting ALL policies that person has). The bottom line is: a person can't be worth more dead than they are alive.

The insurance company, not you, determines how much coverage you can each have.

No insurance on the kid. Waste of money.

 

[BridgetBordeaux]

Get some form of life insurance.

Do not get accident insurance. It is overpriced and covers limited circumstances.

 

[Drew Sailbum]

Oft cited rule of thumb is 7 to 10 years of salary.

Buy term insurance for the appropriate amount. Shop around. There are several internet resources that can give you a realistic idea of what rate you qualify for.

 

[Gigi22]

If you have young children, you also need to cover childcare. We were able to get group term insurance through our employers--the rates were quite cheap. Our unions also offered group term life insurance. Also, if your house is not paid off, you can likely get a life insurance policy to cover the balance--we insured the balance of our mortgage with the bank we got our mortgage from--this was some years ago--not sure if this is still common practice.

 

[4Seasons]

Buy term insurance and get a level term premium (i.e. 20 years at same price per year)

If you are the primary caretaker of your child, figure in the cost of what childcare would be if you were no longer there and add that in to your calculations. Alot of people don't think about that. Just because some people are stay at home moms (or dads) and don't bring home and "income", there is a financial value to what you do for your family on a daily basis.

Also calculate in college costs for your child/children. A single parent will usually have a harder time putting away funds for college.

We purchased a 20 year level term policy about 12 years ago when our kids were much younger. We decided on 20 years because at the point that term is up, our home will be paid for and our kids will be finished college and will (hopefully) be financially responsible for themselves.

That's really the entire point of life insurance, to provide for those that depend on you if you are no longer there.