Simcha Fisher nags us all to buy life insurance

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Xantippe said:
Simcha Fisher reminds us to make sure we have life insurance!

ncregister.com/blog/simcha-fisher/in-which-i-nag-you-to-buy-life-insurance

This is especially important for families with under 5s and special needs children.
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This is why my husband is totally in charge of our Finances.

He has our Life Insurance set, our retirement accounts and investments all planned out for the next 40 years and we actually have adequate emergency savings.

If it was me…I’d be reading a post like this and saying…“wait, we need this stuff?”
Finances isn’t one of my strong points.

It’s been crazy at our house as of late. I’m due in a month, he is working night shifts (12-14 hours) and sleeping all day…which means I have the kids 24/7.
He started joking yesterday that he might want to dial back the Life Insurance policy because he is worth far more to me dead then alive…😉

“No babe…I’d never dream of doing something like that…” 🙂
 
Yes, and stay at home parents need it, too! We have enough on me for burial and to pay off our debts including mortgage, so then my husband could put enough aside for childcare out of his salary. DH’s policy is bigger.

(I agree with your husband, though, Kelfa, it feels kind of weird sometimes to know that one of us could die and while we would definitely be grieving, our financial picture would change…very, very drastically. No wonder it’s a favorite TV mystery plotline!)
 
pensmama87 said:
Yes, and stay at home parents need it, too! We have enough on me for burial and to pay off our debts including mortgage, so then my husband could put enough aside for childcare out of his salary. DH’s policy is bigger.

**Yeah. My husband’s policy is large, but mine is still big enough to pay for a burial plus paying off our mortgage entirely, plus a little spare change. **

(I agree with your husband, though, Kelfa, it feels kind of weird sometimes to know that one of us could die and while we would definitely be grieving, our financial picture would change…very, very drastically. No wonder it’s a favorite TV mystery plotline!)
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The murderers are almost never mothers with small children…

I think that the numbers may sound big, but they’re really not.

My husband’s is big enough to pay off our mortgage, keep our kids in private school through senior year, and pay for college for three kids, but after you do that, it’s really not that much. Certainly not enough for me to stay home indefinitely.
 
I have a really cheap policy through AAA. Supposedly, if I make all my payment faithfully, when the term runs out, I get my money back with interest! (Presuming, of course, that I don’t die.)
 
Xantippe said:
The murderers are almost never mothers with small children…
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Yeah…I can see why.

Despite the mortgage being paid off and my kids would be set for all 13 years of private school and a little bit of college…I’d never get a break.

Not sure if it would be worth it…😃
 
Kelfa28 said:
Yeah…I can see why.

Despite the mortgage being paid off and my kids would be set for all 13 years of private school and a little bit of college…I’d never get a break.

Not sure if it would be worth it…😃
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:rotfl:

The TV episode I remember most vividly (probably because I was young and shouldn’t have been watching it) was a man who’d put some insane policy on his stay-at-home wife and his daughter, then six months later murdered them both and tried to make it look like a burglary gone wrong. He was found out, of course.

(I think I also remember it because that was the first time I learned what life insurance was. “You mean you get paid if someone dies? That’s weird.” Being an adult now, though, I get the practicality. :p)
 
Oh, and think about adding another policy as your family expands. Each additional child probably calls for an additional $100k or $200k.
 
Xantippe said:
Oh, and think about adding another policy as your family expands. Each additional child probably calls for an additional $100k or $200k.
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Wait a minute…the point of life insurance is to cover your costs of living if something catastrophic happens. Like the death of the person who brings in the paycheck. Or the death of the person who takes care of the children, because then you would have to hire someone to come in and cover. And term insurance is the way to go in this case.

But generally speaking, children do not generate income for the family, therefore there is no need for life insurance for them.
 
Also, single people who have no one depending on them do not need life insurance. If they don’t have enough saved to cover their own funeral, I suppose they could get term insurance for that. But otherwise, they really don’t need it.
 
newf said:
Also, single people who have no one depending on them do not need life insurance. If they don’t have enough saved to cover their own funeral, I suppose they could get term insurance for that. But otherwise, they really don’t need it.
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A single person with a large student loan that their parents cosigned on should have life insurance.

(But the parents should probably be paying for it, as it’s for their benefit.)
 
newf said:
Wait a minute…the point of life insurance is to cover your costs of living if something catastrophic happens. Like the death of the person who brings in the paycheck. Or the death of the person who takes care of the children, because then you would have to hire someone to come in and cover. And term insurance is the way to go in this case.

But generally speaking, children do not generate income for the family, therefore there is no need for life insurance for them.
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I don’t mean a life insurance policy on the life of the child (although a small burial policy is not a crazy idea), but increasing the insurance on the parents as the family expands.

In our family, we calculate based on the assumption of college for each child costing in the neighborhood of $100k each. So, $100k to raise the child and $100k for college. That’s still a little light, I think (the USDA thinks it costs $245k to raise a child from birth to 18), but it’s a good start.
 
Xantippe said:
I don’t mean a life insurance policy on the life of the child (although a small burial policy is not a crazy idea), but increasing the insurance on the parents as the family expands.

In our family, we calculate based on the assumption of college for each child costing in the neighborhood of $100k each. So, $100k to raise the child and $100k for college. That’s still a little light, I think (the USDA thinks it costs $245k to raise a child from birth to 18), but it’s a good start.
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Ah, okay, thank you for clarifying.
 
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