with 3 kids,(15,13,11) mortgage(1350month),savings(30k).Our home is worth 215k and we owe125k on the note.No loans on it. I purchsed policies (not term) for all of us years ago. Mine and my wifes personel policies are 100k, and the kids are 25k . The monthly premium totals are about $135.00 for all. Do I or my wife really need this addtional insurance? The kids? I would like to invest the monthly premiums if its a good idea .Plus if I cash in my wife and my policies, I could get about 14k..
2007-07-05 15:06:23 · 3 answers · asked by Flashbark 2 in Business & Finance ➔ Personal Finance
Keep it for yourself and wife, but cancel for the kids. You probably need more for yourself, at least enought to pay off the house so they will always have a place to live. For the kids, you only need enough to pay for their funerals, since they do not contribute any income to the family. You should be able to afford that without insurance money. If not, you need to save some money. Be sure you can leave you wife with enough money so that your family will not struggle. I pay $15 a month for this. $135 does seem like a lot.
2007-07-05 15:17:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Kids don't need insurance since nobody is counting on their income or services. You should have enough on yourself and spouse that the other can afford to keep living the same lifestyle without a spouse. I would go get about a 500K term policy on you and your wife for the next 10 years so you can help the kids with college and invest for income to replace part of your pay.
2007-07-05 15:20:39 · answer #2 · answered by shipwreck 7 · 1⤊ 0⤋
The typical recomendation is 8 to 10 times your annual earnings in good TERM life insurance. Never by the other. It is a hybrid of insurance and an investment. The investment portion usually does poorly. If you want to invest, invest. If you want insurance, buy insurance. Don't try to do both in one policy.
I would guess that you are greatly underinsured if you have $100k only. That would allow your wife to take out $3,000 to $4,000 per YEAR after your death. Could she live off that?
Best case scenario she might be able to draw 10% off of it per year for ten or twelve years. Again, could she live off of $10,000 per year?
I would want to have enough to pay off our debts and still have a good cushion that would offer my wife some income. Keep in mind that with one of the income earners gone, the other will either have to stay home, or pay more in child care expenses.
2007-07-05 15:18:26 · answer #3 · answered by Anonymous · 2⤊ 0⤋