life insurance?

**ladykemma2** · 07-06-2009, 11:52 AM

it is the annual "right before the school year" time to re-up all the insurances. I am content with my choices except one.

i plan to leave all to my ex husband. he is financially well off. i have no one else, no family, to leave anything to (subject to change if he or i remarry). no kids.

i have the emergency fund plus a 25,000 basic policy (provided for the school) to get myself "funeralized"

i figger that that should be enough to take care of any residual bills and taxes. is there anything I am missing? various people tell me I HAVE to have more life insurance. Do I? what am i missing?

advice please.

**Greebo** · 07-06-2009, 12:00 PM

Originally Posted by ladykemma2

i figger that that should be enough to take care of any residual bills and taxes. is there anything I am missing? various people tell me I HAVE to have more life insurance. Do I? what am i missing?

No, if you're single, have nobody depending upon you, then all you need to worry about is what you leave behind. 25k is PLENTY to cover your burial costs. You can even pre-arrange that stuff and get rid of that policy, if you so choose.

I have a large policy, because if I die, I want Ceashels to be well cared for. Since 80%+ of our income comes from me, we do not have a policy for her, because if something happened to her, financially I'd still be fine.

**frugalwarrior** · 07-06-2009, 12:07 PM

Seems like a small amount to me. Do you already have a plot?? We paid over $2000. for ours 25 years ago. Then theres interment fees,funeral services but what about residual hospital bills, possible nursing costs,you have no debt now but will you then. Is he supposed to inherit anything?.Will you have pets or any other ongoing obligations other than children. Is there a house to sell that need repairs? I have $100,000 for about $258. a year. We got it for daycare but kept it for college and final expense.

**frugalwarrior** · 07-06-2009, 12:13 PM

Greebo,When my husband fell and had 9 surgeries he ran up 3/4 of a million in hosp. bills. He lived but if he hadn't we could have easily lost the house. Thats not something you anticipate but people run up huge bills all the time and then die anyway. Medical ins. has cutoffs. They tried to charge us $5000. for the calls to alert the "team". My policy is well worth having. I wouln't want anyone to put out 1 dime of their owm money over my death.

**ladykemma2** · 07-06-2009, 12:15 PM

Originally Posted by frugalwarrior

Seems like a small amount to me. Do you already have a plot?? We paid over $2000. for ours 25 years ago. Then theres interment fees,funeral services but what about residual hospital bills, possible nursing costs,you have no debt now but will you then. Is he supposed to inherit anything?.Will you have pets or any other ongoing obligations other than children. Is there a house to sell that need repairs? I have $100,000 for about $258. a year. We got it for daycare but kept it for college and final expense.

huh, didn't think about this, thanks!

**ladykemma2** · 07-06-2009, 12:16 PM

Originally Posted by frugalwarrior

Greebo,When my husband fell and had 9 surgeries he ran up 3/4 of a million in hosp. bills. He lived but if he hadn't we could have easily lost the house. Thats not something you anticipate but people run up huge bills all the time and then die anyway. Medical ins. has cutoffs. They tried to charge us $5000. for the calls to alert the "team". My policy is well worth having. I wouln't want anyone to put out 1 dime of their owm money over my death.

good advice! thanks.

**fixer** · 07-06-2009, 12:24 PM

If no one depends on your income, I would substitute long-term care insurance for the life insurance.

**ladykemma2** · 07-06-2009, 12:33 PM

does anyone know about estate tax? probate costs?

just for grins, lets say i rack up a million on hospital bills. i own a 110,000 house and a few other objects. would it be better to die intestate? who would be liable?

**Greebo** · 07-06-2009, 12:45 PM

Originally Posted by frugalwarrior

Greebo,When my husband fell and had 9 surgeries he ran up 3/4 of a million in hosp. bills. He lived but if he hadn't we could have easily lost the house. Thats not something you anticipate but people run up huge bills all the time and then die anyway. Medical ins. has cutoffs. They tried to charge us $5000. for the calls to alert the "team". My policy is well worth having. I wouln't want anyone to put out 1 dime of their owm money over my death.

Yes, that is a risk.

But if you are single, with no dependents, then nobody but you is responsible for you. If ladykemma ran up .75M in hospital bills and died w/o Life Insurance, then her remains would be disposed of by either the hospital or the county or state at the lowest possible cost. Not saying that's ideal, but that's one reason we pay taxes. It's a very different landscape as a single woman than if she were married and/or had dependents.

**Greebo** · 07-06-2009, 12:47 PM

Originally Posted by ladykemma2

does anyone know about estate tax? probate costs?

just for grins, lets say i rack up a million on hospital bills. i own a 110,000 house and a few other objects. would it be better to die intestate? who would be liable?

If you rack up a mil in hospital costs and have a 150k in assets (house, stuff) then the estate will go to the hospital. The life insurance would go to the beneficiary, I think - but you'd have to check w/ the insurer on that to be sure. AFAIK tho the beneficiary gets the $$ regardless of what's left in the estate. But I may be completely wrong on that point.

If you die single and in debt, however, YOU and YOUR ESTATE, and ONLY YOU and YOUR ESTATE are liable. Debts do not transfer to anyone else.

**kita** · 07-06-2009, 01:04 PM

My understanding is that the life insurance, if there is a named beneficiary will go directly to them regardless of your bills. Your bills, if no -one else is listed on them will be part of the estate. Your assests will be sold to pay them.
If the life insurance does not have a beneficiary, will go into the estate and pay bills.

**kita** · 07-06-2009, 01:05 PM

See, what Greebo said....

**frugalwarrior** · 07-06-2009, 01:16 PM

Greebo. I prob. wasn't clear I am cleanig outside in bet. posts but I directed at you because I mean't maye be your wife should be ins because scenarios happen. You make 80% of the money now but if you were say in a car accident involving both of you. She could be killed and you disabled. Kids would get SSI but your medical bills could be weighty.

As far as Ladykemma goes, I wasn't sure either whether an "estate incl. life ins. or whether she was concerned if he benefits because not all ex's hate each other (there is that 2% LOL).
I'm not sure if that was clear enough but the BBQ calls and i believe i have a little bat dooky in my hair so I have an excuse??

**Greebo** · 07-06-2009, 01:26 PM

Originally Posted by frugalwarrior

Greebo. I prob. wasn't clear I am cleanig outside in bet. posts but I directed at you because I mean't maye be your wife should be ins because scenarios happen. You make 80% of the money now but if you were say in a car accident involving both of you. She could be killed and you disabled. Kids would get SSI but your medical bills could be weighty.

Oh, I see! I didn't realize you were commenting on our situation!

Hmm. Well, that's an interesting point. I'll have to give it some consideration.

**MaryCarney** · 07-06-2009, 02:15 PM

Maybe I missed something, but why would you leave a life insurance policy to your EX?? Not judging, just wondering.

Your policy beneficiary (your estate for that matter) doesn't have to be a person, you know.

When my kids are through college, my beneficiary will change to a mission organization which I support, and my alma mater.