Term life insurance or SSI

**TheRootedNomad** · 03-16-2008, 09:58 AM

I've been considering pushing the subject of DH getting a 5 year term life insurance policy. ( I think he's got some irrational emotional resistance ) I would only want a minimal amount for about a 5 year term. I'm afraid that if something happened before the house is paid off I'd have to sell it. The kids are still young enough (and we've been plugging away) that in 5 years they'd both still be under 18.

Now the question... Does that mean if something happened to DH, that even though I work and make decent money , we would still get the child benefits for them from social security????If that's a given and not based on my income than I don't really need to push the life insurance. We should probably have a basic policy regardless but I wouldn't feel it was a NECCESSITY.

Any input ???

**mombottoo** · 03-16-2008, 10:18 AM

It's my personal opinion that when you have children at home both parties should carry life insurance. When my husband worked he purchased extra life insurance through his shop. He was worth $1,000,000 if he died, double that if it were an accident. I also had coverage through his work, but for a lot less than him. We also had private life insurance, but once the kids grew up we opted to let the cash value continue to pay for the benefit amount. Mine expires in 2032 and his in 2025. We no longer have life insurance through his shop, because he can no longer work.

Social Security survivor benefits are in place for you and your children if your husband dies. If you are working, you probably wouldn't get much if any for yourself...but, you would still get a benefit for the kids. Term life insurance is relatively cheap and it wouldn't hurt to look into it...nobody likes to think about dying, but if something happened you wouldn't want to leave your family penniless either.

So my answer is: So long as you have dependant children, both of you should have life insurance so as not to place a financial burden on the surviving spouse.

**M55FF** · 03-16-2008, 10:21 AM

To answer your question, the ssi would pay on the children...
your income would not matter.

A friend of mine in high school married right out of high school and had 2 kids before age 20, her husband was killed in an accident while she was still preg with the second. She had a lawsuit on wrongful death and was awarded many millions and she still collected ssi on both kids untik they were 18.

**YankeeMom** · 03-16-2008, 01:36 PM

I was widowed almost 10 yrs ago.

I can tell you SSI will pay out to your children until they are 18 and graduated from high school or until they are 23 if enrolled in college full time. They do not take into consideration how much you make.

Spousal benefits are next to nil. You get a one time death benefit of $255. That is it. There's no monthly stipend from SSI for spouses. The only way, I think, you could get SSI if your dh died is if he were already on SSI and retired. And even then, I'm not positive.

You can request from the SS administration an payout estimate for your dh's SS#. It will tell you how much he can expect to get in SS benefits when he's eligible to retire as well as what his dependents would receive per month should he die. It's a morbid subject, I know. But considering how unprepared I was the first time around, it is something dh & I have both made sure to take care of.

**mombottoo** · 03-16-2008, 03:20 PM

In order to receive survivors benefits, the deceased worker must have earned the required number of Social Security credits and survivors must meet the following requirements:

A widow or widower may be able to receive full benefits at age 65 if born before 1940. (The age to receive full benefits is gradually increasing to age 67 for widows and widowers born in 1940 or later.) Reduced widow or widower benefits can be received as early as age 60. If the surviving spouse is disabled, benefits can begin as early as age 50. For more information on widows, widowers and other survivors, visit Widows, Widowers & Other Survivors.
I got the following information from the SSA website (hope it helps answer your questions concerning survivors benefits):

A widow or widower can receive benefits at any age if she or he takes care of the deceased worker's child who is entitled to a child's benefit and is younger than age 16 or disabled.

A deceased worker's unmarried children who are younger than age 18 (or up to age 19 if they are attending elementary or secondary school full time) also can receive benefits. Children can get benefits at any age if they were disabled before age 22 and remain disabled. Under certain circumstances, benefits also can be paid to stepchildren, grandchildren or adopted children.

A deceased worker's dependent parents can receive benefits if they are age 62 or older. (For parents to qualify as dependents, the deceased worker would have had to provide at least one-half of their support.)

A deceased worker's former wife or husband who is age 60 or older (as early as age 50 if disabled) can get benefits if the marriage lasted at least 10 years. A former spouse, however, does not have to meet the age or length-of-marriage rule if he or she is caring for his/her child who is younger than age 16 or who is disabled and also entitled based on the deceased worker's work. The child must be the deceased worker's former spouse's natural or legally adopted child.

**mombottoo** · 03-16-2008, 03:22 PM

P.S. I typed in my previous post that I got that info off of the SSA website...however, it is now missing in cyberspace

. I hope it answers any questions you may have about survivors benefits.

**brainyblonde** · 03-16-2008, 05:07 PM

If you should decide to pursue the purchase of term insurance, look at the cost for a 10 year policy. There are more insurance companies writing 10 year term than 5 year term, and the cost is comparable.

**TheRootedNomad** · 03-17-2008, 06:35 AM

Thank-you ladies! Both my husband and myself get those SSI benefit letters every year. It just doesn't stipulate if the children's amounts are based at all on the survivng parents income, so your input was helpful. I still paln to talk to DH about a term policy again but I won't be as antsy knowing that I would still get the benefits for the kids.

As for getting a policy for myself I have a small one at work, but it's enough that at this point it would finish paying off the house and for funeral expenses. My DH's earning potential is higher than mine since he's in an in demansd trade so he would be fine even if I didn't have anything. On the other hand I work for a non-profit where I've worked my way up and would have a hard time finding a comparable pay scale let alone expect any large jumps in pay.

Again...THANKS!

**lisettelovebug** · 03-17-2008, 02:17 PM

You should definitely have some sort of insurance. We have some type of continuance coverage (similar to cobra for medical) but it's only 30,000 each. Dh's new job doesn't have group life, though I did mention that once he becomes an actual member of union (next week) he should mention to the union that they should have life insurance. Even though the workkers would have to pay for it, it would be a lot less since it is a big group.

I am going to be looking for more insurance. When I looked a few months ago, it was $10 each a month (we're 31 & 33) for 100,000. Not that we need that much, but if something happened (god-forbid) he would need enough to take a leave of absence from work and then pay for daycare and I would need enough to live on for a while til i could get a job. With the accident on Friday, definitely makes me see how we need to be better prepared. We need a will and guardians for the kids just in case too. As soon as we get all this car insurance stuff done and get a new vehicle on the road, i will be looking into getting both done.

**FrugalMomof3** · 03-17-2008, 02:55 PM

Originally Posted by lisettelovebug

I am going to be looking for more insurance. When I looked a few months ago, it was $10 each a month (we're 31 & 33) for 100,000.

Can you tell me or PM me with the company who would provide such coverage for $10 a month? DH and I both DO NOT have any type of life insurance and with him being 45 and me 35 I want to start looking into this should something happen.

DH just went to the eye doctor 2 weeks ago and she basically said he is blind in the left eye, and although he can see, he has cataracts in both eyes with the right one (suppose to be the good eye) is the worse.

Thanks in advance,
Tracy

**Sari** · 03-18-2008, 11:03 AM

I would definitely not be without life insurance. Until (God forbid) your DH dies, you have NO IDEA what you will go through, what you will have to deal with, how you will feel, etc. I doubt you will feel much like working while you are trying to work through your grief. Plus funeral and other expenses are always more than you'd expect. Plus you have to consider you are losing a lifetime (or the rest of a lifetime) of your DH's earnings, so if you had planned to help your children/grandchildren with college or weddings, you need insurance money to be able to do that.