The best money I spend each year

**Greebo** · 08-28-2009, 09:18 PM

Today, listening to Dave Ramsey archives, I heard a truly heart wrenching tale.

Dave takes a call from a 35 year old woman, married something like 12-15 years, with 4 children. Six weeks ago, on vacation, there was an accident, and her husband drowned.

Two years prior, they had discovered Dave Ramsey, and gotten on his plan. Because of the advice that he gives that they followed, this woman had $9,000 in the bank (Fully funded EF), a years salary in life insurance from work, and another $350,000 had just arrived from his life insurance. They had absolutely no debt, except for their mortgage.

Where most women would be scrambling to figure out how they were going to make their payments, feed the children, and care for them while making enough money to survive, this couple had made arrangements so that this woman could easily spend the next six months with her children, able to grieve in peace and security. In fact, she could spend 10 years just raising her kids on the plan they made in the time they had. With social security, she won't have to work a day of her children's lives at home - and she could pay off her house in full to boot.

This is the kind of story that makes me both very sad, and also very relieved. I'm relieved, because last year, Ceashels and I went to see a MetLife agent and we set up a policy large enough to ensure that should the worst happen to me, Ceashels would never need to work a day in the rest of her life. For a piddling amount - about 1.5% of our income per year, she is protected for the next 20 years.

Today, I heard the story about this poor woman who has no need to worry about money while she grieves for the loss of her husband. Today, I cut the check to Met Life, for the 2010 premium.

It's the best money I spend every year.

**mauimagic** · 08-28-2009, 09:23 PM

You are such a good person, a curmudgeon too, but a good person.

**frugalfranny** · 08-29-2009, 02:53 AM

OH, such a sad story but you never know when or how fast your life can change.

I agree with the plan......good for you.

And a little 'side note'.......you better behave.......remember you are now worth more dead than alive!!!

**Greebo** · 08-29-2009, 06:43 AM

Since we decided to marry, C's always made it clear to me that she wouldn't divorce me, she'd kill me first.

**Dancing Lotus** · 08-29-2009, 08:12 AM

Originally Posted by Greebo

Since we decided to marry, C's always made it clear to me that she wouldn't divorce me, she'd kill me first.

I have made that clear to my hubby too!

**Palooka** · 08-30-2009, 03:11 AM

Very sad story but a good one.

**mommy4ever** · 08-30-2009, 11:36 AM

That is similar too us! I'm exactly in her age group, 4 kids. We are insured so that I wouldn't need to work. Dh work pays out 1.5 years of wages, health insurance included during that time. The mortgage is paid out, and life insurance is enough that I don't need to work. The only difference is my FFEF is a work in progress, I'm $3k less.

AND my dh isn't dead. There is something to be said for peace of mind. He drives alot on bad roads in the winter, a couple years ago his co-worker was killed 3 minutes from work, a total 10 minute drive. But winter is winter. One never knows.

**Rebookie** · 08-30-2009, 11:40 AM

I feel terrible for her loss, but I am very glad they set a plan in action just FOR a problem like this.

**Greebo** · 08-31-2010, 10:35 AM

Two days ago, I cut the check to Met Life for the 2011 premium.

And it's still the best money I spent this year.

**celina** · 08-31-2010, 11:35 AM

it's also important to re-evaluate the amnts...

our policy was for 250k BUT the house mortgage also had a seperate insurance that paid off the loan...so i'd have the 250k plus the house paid off.....now we rent and live in a hcol area...

the most basic house sells for 650k , (the reason we rent) so the 250k will not last long, if i have to rent it would get depleted much faster, i'd HAVE to move to a lcol area....

we like to set things up so the other doesnt HAVE to work and can focus on the kids..(im a sahm ) dh wants to not have the added stress of placing the kids in daycare etc...on top of losing me...(and same vice versa) we are in the process of increasing our life insurance plans to accomodate this new area and still maintain our original plan....we currently pay less than 0.5% to insure both of us and the kids...so even with the higher policy,....it's a paltry sum for the peace of mind it gives...

**Greebo** · 08-31-2010, 11:45 AM

Originally Posted by celina

our policy was for 250k BUT the house mortgage also had a seperate insurance that paid off the loan...so i'd have the 250k plus the house paid off.....now we rent and live in a hcol area...

Those programs are a serious waste of $.

I got an offer for mortgage insurance to cover a $235,000 mortgage for a monthly premium equal to HALF the monthly premium from MetLife for a $1,000,000 policy.

**Jellybeanz** · 08-31-2010, 12:08 PM

We have life insurance on us both, but not nearly enough.Enough to pay off all bills and burial with a small amount left over at this point. Better than nothing, but I wish I had saw the bigger picture when we gotit.. Plus it's term with a renewal clause after 20 years, which we have already passed, and have renewed it again for five years . I believe it comes up ever five years now for renewal, I hope they can't cancel on us. I need to check into that.

I would definately get more if I could, but when we tried to increase our amounts of coverage the insurance denied us due to health issues.And those health issues were tiny in comparison to what has cropped up since we tried again a few year ago.

Of course we tried the route of getting another new /extra policy but that was a no go too.

Heads up to anyone reading that is still i good health , young, etc... don't wait to get life insurance if others will be effected if they lose you. You may not be able to get it later.

BTW, if anyone disagrees with that , please let me know or steer me toward where I should be looking to obtain life insurance if you have any ideas..

I would love to hear I am wrong ....

**tervsforme** · 08-31-2010, 12:41 PM

I listen to Dave Ramsey's podcast every day for just such stories. I hear such stories as this and it really helps keep me focused, knowing I am doing the right thing and I can see the light at the end of the tunnel. There are also many stories of people who are not as prepared as this lady was, those stories tug at one's heart strings and they also help keep me focused even more because I don't wish that to happen to me. Thanks for bumping the thread back up. Stories like this are what keeps us all going...

**frugalfriend** · 08-31-2010, 12:57 PM

WTG, Greebo!

I so agree on how important life insurance is and that story is so sad but heartwarming too! What was the date it aired (if you remember) because I'd like to go back and hear it.

We did a stupid thing and accidentally let our policy lapse when we were in the middle of moving, and so far haven't gotten a new policy. That was almost three years ago!! I kick myself all the time about getting it worked out and not letting ANY MORE time go by! I've gone on Zander (since Dave recommends) even just a few days ago. Problem is I'm so lost on there! There are so many companies, most I've never even heard of, and so many different choices, levels, prices for the same amount of insurance, how do you ever pick one??? I'm so confused by it. Thought I would call the 800 number and ask some questions and try to figure it out. There is no excuse for letting this go.... thanks for the reminder!!

Maybe I'll try MetLife (they were not listed on Zander).