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Thread: Life insurance?

  1. 06-22-2010, 01:16 PM #1
    Nishu
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    Default Life insurance?

    How much should we have? Right now we have 400k for him and 100k for me through his military sgli.

    I called usaa to talk about the next deployment and they talked me into doing a financial assesment. They said I needed more insurance beyond the sgli and I'm just not seeing it. We went through the same thing a couple years ago when they told me that the 100k that I was covered for was "nothing."

    What am I supposed to base it on?
    ~Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.~

    ~The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.~
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  2. 06-22-2010, 01:57 PM #2
    KeithBC
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    There is no one answer. You should base it on your needs. The function of life insurance is to provide for you and your family in case the main wage earner dies. Provide how? An annuity for life? A lump sum to tide you over until you can get a job? Enough to upgrade your qualifications so you can get a better job? You decide.

    Basically, I would suggest deciding how you would want to use the money, and that will determine how much you need. Within reason, of course - everyone would like a $10 million payout, but you have to be able to make the payments.

    The other decision is whether to get term or whole life insurance. Term insurance is like renting the policy. As long as you make the payments, you are covered. If you stop making payments, you have nothing. Whole life insurance is like buying the insurance. If you stop making payments, you still have equity in the plan. This type can double as a retirement saving plan.
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  3. 06-22-2010, 02:58 PM #3
    Greebo
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    I generally go with 10x the annual income.
    Quote Originally Posted by KeithBC View Post
    The other decision is whether to get term or whole life insurance. Term insurance is like renting the policy. As long as you make the payments, you are covered. If you stop making payments, you have nothing. Whole life insurance is like buying the insurance. If you stop making payments, you still have equity in the plan. This type can double as a retirement saving plan.
    Price whole, buy term, wisely invest the difference, and you'll have a WHOLE LOT MORE than you'll ever save up buying whole life.

    I've got bank accounts that beat the return offered by 'universal' policies.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"

    Greebo    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
     WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

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  4. 06-22-2010, 03:10 PM #4
    Greebo
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    Some interesting insights into whole vs. term, including from people no longer in the business:
    Bogleheads :: View topic - Whole Life Insurance - pros / cons
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"

    Greebo    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
     WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three     Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!
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