Buying Life Insurance

[mom2binsd]

OP here. Thanks for all the good info. I do belong to a prof organization and will check the other suggestions.

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[KrisM]

I have $250k on me and we pay $370/year for it. I was 33 when I got it. We looked at increasing it and $500k on me would be $640/year, but I"m 42 now.

[mom2binsd]

I am thinking that my age, 45, may be a factor. My organization only has up to 125k. Will do some research tonight.

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[peanutbutternkelly]

When my husband and I got our term life insurance (20 year) 4 years ago we made sure it was enough to cover the cost of our mortgage outright in case something happened to either of us. It is with State Farm who had our car and homeowners at the time. Now we just have our homeowners with them and we pay about $150 a month for a combined $700K or so in benefits. My point in saying this is you are recently divorced and while a previous poster thought you had maybe bought too much... but those are the factors we considered when purchasing... which might help you with your decision too!

[KrisM]

When my husband and I got our term life insurance (20 year) 4 years ago we made sure it was enough to cover the cost of our mortgage outright in case something happened to either of us. It is with State Farm who had our car and homeowners at the time. Now we just have our homeowners with them and we pay about $150 a month for a combined $700K or so in benefits. My point in saying this is you are recently divorced and while a previous poster thought you had maybe bought too much... but those are the factors we considered when purchasing... which might help you with your decision too!

People were saying the cost was too high, not the coverage amount. You should have 7-10 times your income, typically. You need to be able to replace the income that is lost.

[peanutbutternkelly]

Whoops!!! That makes more sense!!! Sorry!!

[daniele_ut]

I'd say the premium is high too. I pay around $35 a month for 500K of coverage on a 20 year term policy. I think it's through Fidelity life, but I can't remember right now!

[niccig]

I am thinking that my age, 45, may be a factor. My organization only has up to 125k. Will do some research tonight.

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Age is a factor. We wanted more on DH and it was a lot more. He's 44 now and has lost 30 lbs, so we're going to try again. Hoping that as he's in beter shape, it'll help some.

Definitely shop around.

[twowhat?]

People were saying the cost was too high, not the coverage amount. You should have 7-10 times your income, typically. You need to be able to replace the income that is lost.

This is what we do....actually we do even a little bit more than 10 times. Yeah, it's expensive, but if DH died, money is the last thing I would want to worry about for at least 10 years (and vice versa). It could take that long to get your feet under you, figure out and implement a plan for downsizing (smaller house or whatever), and define and implement necessary changes you need to make to your employment. So, since we can afford it (right now), we both have quite generous insurance coverage.

Unfortunately I can't remember our premiums off the top of my head. But we did get our financial advisor to help in terms of which company to go with.

[♥ms.pacman♥]

You should have 7-10 times your income, typically. You need to be able to replace the income that is lost.

DH gets a life insurance policy through his employer, but that is capped at 5x his salary. We got a separate policy thru State Farm (actually 3 policies, so we could tier it down over 30 years)..so i think it's something $3M for first 10 years, $2M for next 10, and $1M for the 10 years after that...so much more than 10x his salary. It is a lot, but it makes me sleep a lot better at night knowing I did not have to worry about this....i'm a SAHM now with 2 young DC..we have a house, no family in town for support, so we wanted to make sure there'd be enough to sell the house, moving costs (for me to move close to my family), daycare, and whatever.