Life Insurance Quotes are not as scary anymore
In light of the recent family death I have been immersed in preparing for my own and my husband's deaths. Not our actual deaths, but what will happen after. I've always had an "In case of death" file with all my requests but that was well before being married and having a family. Now this topic is more serious than just making sure a huge kick butt party is thrown in my honor.
In light of the recent family death I have been immersed in preparing for my own and my husband's deaths. Not our actual deaths, but what will happen after. I've always had an "In case of death" file with all my requests but that was well before being married and having a family. Now this topic is more serious than just making sure a huge kick butt party is thrown in my honor.
Going from a dual income to a single income, finances have
been tight. Maybe more than tight, more like draining-blood–from-turnips-with-fingers-crossed-and-psalms-being-sung tight. Recently we cancelled
our life insurance policies so we can start over after a good reassessment of
what we have and what is needed.
I was extremely over insured and my husband under insured.
Ten
years ago when my dad died he did not have enough life insurance for the family
needs. In my fear, I went balls out with my life insurance policy guaranteeing
not to repeat my dad's mistake, BUT, I don't own two businesses with mega
overheads. I have a meek mortgage, a daughter, a
husband, and the usual American-dream debt that less than a quarter of my old
policy would have covered. My husband’s policy would not have covered squat had
he faced his demise before me thus putting me and B in a mega world of hurt. Can someone say government cheese hurt?
Time to learn about
life insurance-que the anxiety.
Suze Orman for SelectQuote puts life insurance in terms I
understand! (Hello, girl crush just got a
bit stronger!) Whole life expects you to die and a death benefit to be paid out. The
issuing company needs to figure a profit into the equation which
helps make these such policies so expensive.
According to the LIMRA, 2011 saw a 2% increase in individual
whole life insurance policies over 2010, and “this is only the 4th time policy
sales have increased in the past thirty years.” Whole life is flourishing in
our current economic climate which I find interesting considering whole life is
extremely expensive. Aside from the astronomical upfront monetary outlay there
are great benefits to whole, but if your finances are hurting as is, these
benefits do not out way the costs.
Term policies on the other hand are extremely affordable. According
to Suze everyone can afford something, yet they are not faring as well in new
policy increases even though they “represent 65% of all coverage and nearly 40%
of all new individual policies issued” in the US.
On SelectQuotes website Suze has a number of short, to the
point videos that explain things in layman’s terms. She stresses if you have anyone dependent on
you financially or physically (hello
SAHMs) you must have a policy in case of your death so they can continue to
live the way you want them to. Term is for a specified amount of time
where the issuing company does not expect you to die, so companies
are profiting from day one with your policy, while not adding it into the
premium.
Insurance has always been the most intimating concept for me.
Hah! Not anymore! Life insurance you no longer scare me. By month’s end my husband and I will have new
policies in place providing comfort knowing if something happens our survivors
are not worse off.
I'm looking forward
to our new term policies and the time we can transfer them to whole when we get
back on our financial feet.
How did you choose your families policies and the companies
you went with?
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