Who's got life insurance? Why? Why not?

[Robb]

The DingWife and I are examining such things, what with the fact the other would be rather out on the street should one of us shuffle off prematurely.

Anyone have a good handle on life insurance? Fool's game? Good plan? :shrug:

[NewJeffCT]

1. Get term insurance or get nothing

you can probably get better returns on investments by using other investment products besides variable or whole life.

[bertha katzenengel]

3. I've always wondered: what's term life?

If you don't mind answering.

[NewJeffCT]

4. you pay a low amount for a set term

be it 10 or 20 years. At the end, you get nothing, but it does cover you in case of an early death. We have that to cover my daughter through college in case one of us dies. Sometimes, you can convert term insurance into permanent insurance at the end, but I'm sure it's not cheap.

Other types of life insurance (permanent) are also investment products - you put money into the account and the company invests it for you in various investment products.

[bertha katzenengel]

12. does it make any sense to carry both?

I'm ignorant.

[NewJeffCT]

17. I'd probably check with an expert

before relying on somebody on DU.

But, there can be places where carrying both is okay. I'm just not certain what they are.

[bertha katzenengel]

2. i have it through my job, but need more

I have it so that Mrs. V. won't be burdened with our debt. I need to take out enough to cover everything we owe, including our mortgage.

I don't believe it's a fool's game because it will pay out eventually. Everyone dies -- and most importantly, we don't know when.

Good luck in your decision.

[NewJeffCT]

5. maximize your group insurance, if possible

sometimes, companies let you pay out-of-pocket to get 2x, 3x or 5x your salary in group life coverage. That's probably the easiest way to do it.

[bertha katzenengel]

11. I had that at my last job. No medical exam, which was a boon for me.

I paid for 5X. Unfortunately, that firm laid me off last month. I'm still not over it. My new employer hasn't a quarter of the benes of the last. But they do pay 100% of my health care premium. I guess that's something.

[riderinthestorm]

6. We do.

2 kids with college dreams, and a large farm and business that would need money to tide it over any transition that would shake it's operation when one of us dies, lots of animals that couldn't survive if the steady income stream were disrupted....

Lots of reasons in our case.

I think you have to assess your needs and what you really want the money to be for - mortgage payments, college funds, long term health care for your SO and/or dependents, $$$ to travel like royalty? I don't think it's a fool's game at all. It's smart to think about what the reality of your lives would be when the other passes on.

I know for us, neither one of us would probably change our lifestyle any - we'd just need the extra $$ to keep things keeping on so our insurance needs are structured around that idea.

Good luck!

[Callalily]

7. Only through my job.

And actually, it's pretty generous, for my beneficiaries that is. ;)

[eyesroll]

8. We don't.

Right now, we don't own any real estate, and don't have a lot of income, so there's not much to replace. My partner's daughter will be provided for in the event of his premature passing through other means.

Once we get a house and I get a Big Lawyer Job, or if we have additional children, it may become more worth it.

[Gormy Cuss]

9. The fact that a death would put the other one out on the street means it's a good plan for you two.

It's a relatively cheap investment for some piece of mind. A friend of mine lost her husband suddenly and with him went 75% of the family income. The life insurance made it possible for the family to stay in their house while she beefed up her skills and earning power. Without it, they would have had to move out of state and live with relatives.

[lizerdbits]

10. I got a free policy at work, just had to designate who receives money.

If I had to pay I probably wouldn't get it since I have no spouse or kids. No one will be in financial hardship if I die tomorrow.

[The Velveteen Ocelot]

13. I don't.

But that's because if I croak nobody will notice or give a crap, except the cats, who will eat me.

[shanine]

14. I have it so my daughter

will have something to bury me with and the leftover should be a big financial help for her.
Otherwise I wouldn't have it or have much.

[Wapsie B]

15. Having been in the biz myself I would personally stay away from captive agents

that is agents working with only one particular company. An independent agent should be able to get you some good rates on decent term insurance. If you have car/homeowner's/renter's insurance ask your agent there about life insurance. Another place is:

http://www.insure.com/

They've offer good comparison shopping for insurance of all kinds. Problem I've always had with Whole-Life or Universal Life policies is that you either get the death benefit or the cash value, but not both. Maybe that's changed this day and age however.

[alarimer]

16. I don't have any life insurance

Except a $5000 policy I get for free from work, which goes to my parents in case something happens.

Otherwise it would be a waste of money as I am currently single. I am sure cats can't be the beneficiary, can they?

[kath]

18. If you do decide to buy, only buy TERM life insurance -- do NOT be suckered in by the bullshit sales

pitch that term insurance is "temporary" insurance, while whole life and the other bullshit "investment" types are "permanent" insurance.

Buy a term policy, and do your investing *elsewhere* with any money left over...


If you do not have dependents, your need is less, and would depend on things like your spouse's income, how much of a mortgage or other debt you have, etc.

[femmocrat]

19. Only as part of our benefits package at work.

If I didn't have it there, I wouldn't buy it, because my eyes glaze over when someone mentions "insurance".

[UTUSN]

20. No. No. I don't know. I don't know.

1) Do I have it? No. Because a) I don't understand financial stuff and b) because my understanding is that it is basically to pay for burial? and I pre-paid the cremation, marker, etc.

2) Second "no" plus 2 "I don't know"(s) are for the closing questions in the o.p.