What kind of life insurance do you have? (Type, amount, company if you want to share...)

[Anonymous]

Trying to make sense of it all and would love to hear what you chose and why. We have a new baby and a mortgage, so are looking for a basic policy that will support one parent should something befall the other, and will cover the kiddo in a worst case scenario. Both parents work and salaries are pretty comparable, so I think that means we need similar policies on both of us. From what I've read so far, term life insurance would likely get us through the college years...if you chose a different type (universal, etc.) what factored into that decision? How did you decide how much coverage to buy? (We've used the various online calculators but are taking those recommendations with a grain of salt since who knows what investment returns, inflation, college costs, etc. will really be over the next 30 years...)

Thanks!

[Anonymous]

We have 30-year $2 million term insurance on me - which will last until DC1 is 28 and DC2 is 26. We have 20-year $1 million term insurance on DH - which will last until DC1 is 18 and DC2 is 16. DH also has about $800,000 in FEGLI insurance. The difference is in how expensive DH was to insure - although clearly we need a way to extend his coverage. We should really be shopping again. Our mortgage is at about $460,000. Our incomes are similar. Not sure if this is too much or too little. Curious what others say.

[Anonymous]

Thanks for posting this question. I am a single mother of a one year and would love to hear from others on how they made a decision on the type of insurance they selected.

[Anonymous]

Term. $250K each -- which pays off the mortage ($70K left) and leaves enough for the survivor to do whatever it takes to move on.

I see life insurance as a bridge, not a windfall. Why should a 28 year old get $1MM just because dad died?

[Anonymous]

Definitely just get term. We got 30 year which I think will run out around when the kid is 25. and we are close to/at retirement. I think it ended up being about 7x salary.

[Anonymous]

We have 20year term that will last just to the time the youngest is done with college. Each have about $1million coverage. Mortgage is 650k. I make $140k and DH about $200k.

[Anonymous]

Term. $400,000.

[Anonymous]

OP here---thanks! (And thanks, Google tracking...apparently Gerber Life is an option too...

I should have added that, like 14:47, we have the challenge of two parents whose costs are quite different (both healthy, but DH is early 40s while I am mid 30s), which apparently makes a big difference in costs). So that is really helpful info also! In our case, a 25-year plan (which only some places seem to offer) takes us through DH's retirement and a theoretical second kiddo's college years, but a 30-year plan gives us a little extra cushion in case college is not immediately paid off (likely!) and gets me close to retirement age.

[Anonymous]

We got 30 year term policies for both me and DH. We used our mortgage as the base amount and added approximately 300K to provide an extra cushion should the unthinkable happen.

[Anonymous]

Anonymous wrote:We got 30 year term policies for both me and DH. We used our mortgage as the base amount and added approximately 300K to provide an extra cushion should the unthinkable happen.

Thanks---this sounds like a logical way to do it!

[Anonymous]

We have approx $1.5m coverage for me and DH combined. We also have disability. Our premiums are $185 a month with Northwestern Mutual.

[Anonymous]

We have 30 year term with USAA, $1m on DH and $750k on me. I am more expensive to insure because of a medical issue I had when I was younger that makes me a poorer risk. DH's premium is $60, mine is $140 (per month). I was hoping we could get more for $200/mo, which was what I budgeted, but those were the breaks. I am thinking of us buying an additional policy on DH (he is the breadwinner) since he is still young and in excellent health. We have a significant amount of student loan debt, so that figured into our decision about how much to purchase. At the time we bought, I was working. Since I will be out of the work force for a number of years (we have 3 young kids and plan on one more), I would need to go back to school in order to begin a new career and $1m might not end up being enough. The insurance we have now will expire when the kids are mid-20sish, and DH and I are in our early 60s.

[Anonymous]

We have $500k in 30 year term USAA policies (bought at 32 y.o.) for both me and DH that cost us $65/mo and $80/mo each. (Men are more expensive even though we're both healthy.) We are the same age, make equal salaries and have stable jobs (feds). The $ would pay off our mortgage (we have no other debt), and the survivor would be able to cover the rest of our monthly expenses (including college savings) from his/her salary. Alternatively, s/he could use the money to buy a house in a lower cost state closer to family and leave the gov't.

[Anonymous]

I'm a single mom and I couldn't afford much so I got a 20 yr term plan (my DD will be 26 when it ends) for $250K through Met Life. When I get a better job, I plan on upping the amount.

[Anonymous]

Lots of info on amounts and lengths here but not enuf about cost per month. Hard to compare relative value of policies without it.