by Hope
I wrote 2 or 3 or several years ago about my life insurance. I’ve had the same policy since Princess was born. And several years back, I could have converted it with no check up. I did have a conversation with them and it just didn’t seem like a good idea. My coverage would have been cut significantly and the cost would increase.
But at the end of the year, my original term expires. So it’s time to figure out what’s next as far as life insurance goes.
Current Coverage
I currently have a $250K policy that costs me $67 every quarter. If I want to keep this policy, I will have to undergo a physical and I’m certain the price will increase considerably. (I imagine I will have to have a physical no matter what decision I make for life insurance going forward.)
Time to Do the Research
I will have a call with my current provider in the coming months. I do have until the end of the year.
So hit me with your best suggestions. Companies, questions to ask, amount and terms I should consider, anything else? And at what point, does the cost out weigh the benefit?
What I’ve read is to make sure that I have enough coverage to cover my debt including my mortgage. I should make sure my will is up to date to prevent or expedite probate. And, as always, I must keep the benefits up to date. (Good reminder, since I haven’t updated my current beneficiaries since all my kids are now adults.)
I realize that life insurance rates go up exponentially with age and health. My dad has often expressed the possibility of dropping some of his policies due to cost.
I believe I should still carry a decent amount for the foreseeable future. Thoughts?
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Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 3 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
Just wondering why you have such a large insurance policy when you no longer have dependants? I think it’s reasonable to have a small policy that would cover your funeral expenses, etc but $250,000 seems totally excessive.
Do you intend for your kids to inherit and use your house? If so, I would say maybe have a policy for that, but have a conversation with your children for what would happen if you pass. They shouldn’t be responsible for your debts unless they’ve co-signed. Even the mortgage wouldn’t automatically be left to your kids. But this feels like an important conversation to have with your kids. Would your kids all have the same amount allocated, is there an executor, etc
I also would recommend getting a physical life insurance or not! Please do not avoid preventative care, including things like getting mammograms! Even if you don’t have health insurance, it will cost way more down the road
If your diabetes is under control like you say would only your age cause your rates to go up?
At this stage in your life, no one is depending on your income but you. You need enough to cover funeral costs and that is it. Your debt will die with you. You would be wiser to spend the money on health insurance, as that will be needed while you are still alive.
Life insurance is really to let your family survive without you if you die. Since your kids are on their own I don’t think you need it.
Please for the love of God consider health insurance instead. If you get sick in a way that you don’t drop dead (most people don’t die instantly) that’s going to be much more of a burden for your kids financially.
I have no clue about lfie insurance but it would be good just incase. I think we also want you to have some kind of regular insurance if you have a smaller health issue come up too. But I know American healthcare is complicated!
The purpose of life insurance is really to provide for family members who need support after you are gone. Since you have no minor children or a spouse who relies on your income, this is really not an expense you need to take on. The only benefit would be to provide an inherit your kids when you die, but at this point your current needs are much more important (decent health insurance, saving for retirement, paying off debt). I would think really hard before you spent more money than you already are on this item that is not needed.