I sold life insurance for a time, and I’d like to add something to what fruitbat said about employer-provided life insurance: if you quit or lose your job, that insurance goes away, so you should have some of your own. Also, if you have young kids, think about how much it will cost to send them to college. Think about how much you owe on your mortgage, if you have one. Think about how much it would take to compensate for the loss of your income. You probably don’t want your surviving spouse to carry that burden alone.
Man, I’m starting to sound like I still sell insurance.
I’ve got about $200,000 through work. I maxed out the available options on coverage. And in my case, it’s a good deal, because it’s the Federal Government. Our group life insurance is pretty cheap, and no physicals, no medical questions.
I could smoke three packs a day, never wear a seat belt, and have Russian Roulette as a hobby, and they wouldn’t know or care.
Not one single cent in insurance or assets alas, well maybe a couple of thousand in stuff.
About the same as my hubby was worth when he died. Never cancel insurance because you can’t afford it. You never know when someone may decide to kill themselves 3 mths later.
In 1995 I was in an automobile accident and was intubated and put on a ventilator and respirator at a small hospital then transported to the Medical University. The organ procurement doctor met my wife at the door. I’m not sure of the monetary value but he wanted me badly. Things worked out in my favor.
Dead, I’m worth $100,000. Airman took out the spouse option SGLI policy. It costs about twelve bucks a month. (Assuming I don’t die, my future earnings will be a hell of a lot more than that.)
My old science teacher once told us we’re mostly water with a few dollars of miscellaneous chemicals. I don’t think he took marketable enzymes into account.
$1mil 20 year term policy (at that time Mrs. Matchka can boot the kittens)
$88k group through work–cuz it costs $3/month
Was an insurance agent myself for a time. I still beliece that most folks only need term, and usually a ton more than they think. With a few exceptions, the parents always would develop a need for $500k each (term–get the kids taken care of & spouse fends for self thereafter). I got 3 kids in private school, wife is stay at home mom. We came to the $million figure by looking at mortgage payoff, modest new/dependable car at 7 year intervals, daily living expenses, tuition for gradeschool & college or therapy. It adds up pretty quickly.
Whole Life I have nothing good to say about unless someone else buys it for you.
Universal Life…now THAT’s a cool little thing…let’s hear it for interest free investment growth (well, actually, indefinitely tax-deferred growth)!
Yeah, our financial planner suggested we do term, amount based on future earnings or as close to that as we could afford. So we got 20-year term, but it’s the amount I can’t remember. It’s really not that expensive, and it’s good peace of mind. I mean, except for worrying about one’s spouse’s intentions.