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Finally applied for life insurance for myself

July 28th, 2008 at 05:32 pm

When I was working full-time I always had life insurance through my job benefits. I don't remember if I took the basic 2x or 3x salary or bumped it up enough to cover the mortgage. When I became a SAHM that of course ended.

DH has insurance for 3x salary through work, and also a group term policy through IEEE (a professional organization for engineers.) The IEEE insurance is a great bargain, only $77 every six months for $500k coverage.

DH originally felt funny about taking insurance out on me, because he felt he'd be able to provide for our son on his own with no problem. Then we attended a will and trust seminar where they made the point that if both parents die you should leave enough insurance to pay for the guardian to raise your kids, and that provided a rationale he felt good about.

So I've had adding spousal insurance on the to do list for a long time now. IEEE actually called one day and instead of blowing off the salesperson like I would normally do I asked for a quote. Since I'm working again (software contracting), I could join IEEE myself and take out an individual policy, or go on my husband's policy as a spouse, so I asked her to quote it both ways. She said she'd never been asked that before. Smile It turned out that it was about $15-$20 cheaper to be a spouse, plus I wouldn't have to pay dues (although I might rejoin someday anyway if I decide to use the club for networking purposes.)

I think my policy is about $67 every six months for $500k coverage -- what a no-brainer! I should've taken care of this years ago.

So if DH dies, there's enough to pay off the house and income replacement for 4 years, and if I die he can pay off the house and have an extra 2 years of my current income. Plus of course we'd inherit each other's IRA accounts. $2M (half from insurance, half from our current net worth) should be plenty to raise our son if we both die.

I really should get a quote on long-term disability insurance as well. I think DH has 66% replacement coverage through work. Not sure if I am able to get it while working as a contractor.

3 Responses to “Finally applied for life insurance for myself”

  1. monkeymama Says:

    That's the thing that really sucks about a SAHP - HARD to get disability insurance (but seems about just as important - if not more important - than life insurance). Hopefully you can get some.

    Anyway, I just had to kind of laugh reading your post because my professional association has taken to sending me weird notices like, "What if your spouse DIED?" I think, well, be blunt about it why don't you?

    We pay $500/year for 1 mil coverage privately (1/2 each) and I added back $200k coverage from my professional association, since it is rather cheap (maybe $50/year).

    Anyway, since they don't realize we are well covered elsewhere, they keep sending me such lovely notes...

  2. Byron Udell Says:

    Getting spousal coverage may seem silly, but in fact it is not. It's a smart idea - even if your husband would be able to provide for your son, think about all that wouldn't be covered (day care, college, etc.).

  3. Natalie Says:

    Totally agree with you on life insurance. I purchased a globe life insurance policy, and I couldn't be happier with it!

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