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Life insurance??

Discussion in 'The Lounge' started by jarheadk5, Mar 23, 2007.

  1. jarheadk5

    jarheadk5 1/2 ton status

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    Need some schooling on this. I don't know much about it, other than I really should have something other than SGLI for when my current active-duty time is up. Wife should have some too, I suppose...

    I just got an offer in the mail from my credit union. Policy is issued by CUNA Mutual Insurance Society, is term-life, and a sample monthly premium is $11.00/month for age 30-34 non-tobacco user, for $100,000 coverage. I have no idea whether this is good or bad.

    Anyone??
     
  2. Can Can

    Can Can Pusher Man Staff Member Super Moderator

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    I don't know what your debt load is, or how many children you have, but $100K isn't very much.

    When you consider a life insurance policy, you need to sit down and figure out exactly how much money your wife is gonna need to cover your lost wages if you died tomorrow. It sounds morbid, but it's true. I don't know about you, but I NEED to know that my wife and children won't suffer a change of lifestyle if I die. I need to make sure there's enough cash available to pay all the bills and cover extra daycare(a single parent pretty much needs daycare), as well as pay for future schooling and activities until my children leave the nest.

    FWIW, I'm covered for $550K right now. As I get older, and my debts shrink and the kids move out, I'll be adjusting that coverage down accordingly.
     
  3. noahrob

    noahrob 1/2 ton status Author

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    Depending on how old you are, there are two main options. If you are like me, relativley young and healthy (knock wood) term insurance is the best. Basically, I buy a level of coverage, in this case $100k for a set price. The term in most cases is 20-25 years, that is I get that same coverage for the same price for 20-25 years. The other type of insurance works more like an investment account and I can't rememeber too much about it, but when I was doing my research, I decided it was not for me. As the Canadian above me mentioned, $100k ain't much and I want my family to be dialed in...In fact, they would be sitting pretty good if I was missing...but it is worth to me for college for my daughter, my wife's comfort etc...I hope my wife never sees this, I might not make it through the night...yikes!:D
     
  4. MTMike

    MTMike 1/2 ton status

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    Dave Ramsey (financial guru) always says "8 to 10 times your annual income in term life insurance, and stay away from 'Cash Value' crap." So if you make $50k, you should have $400-500k
     
  5. AZ79K5Project

    AZ79K5Project 1/2 ton status

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    If you are interested - shop around a little. My car insurance guy (Farmer's) was offering $250K policy for $14/mo.
     
  6. 84k5

    84k5 1/2 ton status

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    I just have 10k since I'm single and that's what I get for free from work. Betwen that and what I have in the bank, it would cover all my debt. Don't get too much, it might give your wife ideas.:eek1: :haha:
     
  7. Big Blzn

    Big Blzn 1/2 ton status GMOTM Winner

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    What Canmore said. Didn't see what part of the country you live in and that could very well depend on the amount of coverage your family will require ie. larger mortgages, higher cost of living, etc. Both my wife and I are covered because we both have to work. I had to take blood tests to verify that I really didn't smoke and not on my way out. Together we have $3 million with more than half covering myself (yes I look over my shoulder all the time) because I tend to take more risks and drive a lot for work and have a greater probability of my truck finding a large tree on the side of the road a 65mph. My wife and son would have everything paid off, college paid for and plenty of extra cash to do the things they need/want. We do pay about $ 1,650.00/year for the coverage though. There are certain things I can't do for fun or my coverage will not pay out such as bungie jumping and the like, flying on a chartered aircraft, suicide and many other dumb things. What it comes down to is that it cost a good amount of money to get a good amount of coverage so get the most you can afford and speak a professional about it. Your childs well-being is worth it.
     
  8. JEBSR

    JEBSR 1/2 ton status

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    I have 450,000 on myself and 250,000 on the wife. When I retire I will keep it the same until all the kids are grown. Then I may drop mine to 250,000. I also have insurance on my house mortgage. If I die it's paid for. Wife won't owe anyone a dime.That is the most important thing to me. She has also been informed to find the cheapest way of getting rid of my ass. I.E. cremate me and poor my remains in the fuel tank of my toys so I can be with them a little longer:D .
     
  9. 4by4bygod

    4by4bygod 1/2 ton status

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    I have term life from CUNA also.. 100K right now, and I pay 45.00 per quarter for that. AAA and the NRA have nice deals for members too.

    right now, the 100k is sufficient ( no kids )but as we go forward I'll amp up the coverage so the wife has more if I croak..

    I always joke that at the coverage we have now, she can push me down a starwell, and at least go buy a viper, LOL..

    Seriously though, I feel that term life is the way to go.. whole life has drawbacks because life insurance is not an efficient investment vehicle, and buying policies on kids just burns up money that could be invested better on their behalf.

    as was said before, life insurance is to replace income when the breadwinner takes the dirt nap..on that note, it may be wise to look at a disability policy as well, in case you get hurt at work.. some health insurance policys have those, and maybe your creit union can hook you up..

    Tom
     
  10. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

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    I really prefer something in the .40 caliber family of handguns for close-in work and 7.62mm for long range work. That's good life insurance no matter how you look at it.:D
     
  11. 4by4bygod

    4by4bygod 1/2 ton status

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    And firearms are an investment, too..
     

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