Monday, June 05, 2006

Life Insurance...

What a sticky business this whole having a family thing is. Now that we have our little Noah on the way, we have decided that it is time to get some "real" life insurance. Well it is a bit pricey this life insurance stuff. It will cost us a little over $100 a month. That seems a little excessive. My hubby is trying to convince me that we don't need it. But we do, don't we. Yes we do. I know of too many stories where something happened and the family was underinsured or not insured at all. I am not so worried about if something happens to only one of us, but what if something happens to both of us. I want our little ones to be taken care of. I don't want one of us to have to work a second job to take care of the families needs. Yet another insurance policy that we pay a lot of money for hoping that we never have to use it. I am in the wrong business.


MP2 said...

Oooh, did I read "little ones" - plural....?

So glad to see that the Finley Family is already thinking of growing again!

Danielle said...

Your quote seems high! You didn't get sucked into a whole life policy, did you? A term policy is more than sufficient and will be much cheaper (I think the half million policy my husband and I each have comes out to $20/month). The difference between the two is that you build an equity of sorts with the whole life policy, but in reality, the rates are awful. If you have so much money you don't know what to do with it, it's a fine place to park some extra, but otherwise it's just a waste. Term policies are only effective for the term, then are worthless. But, you save a bunch of money, and can invest the other $80 in something with a better return. Also, when thinking about how much coverage to get, make sure you cover all debts (student loans, mortgage, credit cards, cars, etc.) as well as give you a salary cushion for one year (and if you're planning to stay home, make sure your policy covers the cost of day care and a housekeeper for one year).

Our financial planner keeps trying to suck us into a whole life policy too (they get the biggest commissions on those of any investment vehicle, FYI). I did lots of research so I have reasons why I'm telling him NO! :)

(who's dad died when she was 13 and whose mom didn't have the money for us to live on and life insurance saved the day!)

Wow. It just felt really nice to talk about something other than adoption. I'm starting to lose my mind with the obsession. Feel like talking about other stuff non-adoption related?!