Texas-Dallas and Ft. Worth
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Life Insurance/Wills/Etc.

Okay, so I know this is a depressing topic, but my mom brought this up to me the other day.  She suggested David and I both get some form of life insurance, and to also look into putting together a will, even though we don't have children yet.  My step-dad's first wife died unexpectedly, so he is unfortunately familar with this kind of stuff and him and my mom are trying to look out for us in case something happens to one of us. 

So, I guess this is mostly geared towards the married ladies, do you guys have life insurance policies, or wills yet?  I guess I'm just trying to figure out what we need.  I had my insurance agent quote us a few policies, and there are so many types out there at such different prices, that I feel kind of lost.  Any thoughts/advice?
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Re: Life Insurance/Wills/Etc.

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    Buttercup509Buttercup509 member
    First Anniversary First Comment
    edited December 2011
    We haven't drawn up wills. We really should. Like you said, it just seems depressing.

    We do have life insurance policies. We combined our auto policies when we bought a house and needed honeowners insurance, and we added the life policies at that time. I don't really remember how much they are for (I guess I should know that). I know they are whole life policies. I think I remember our agent recommending the life policies being able to pay for funeral costs and to pay off our mortgage. HTH
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    edited December 2011
    I know DH did a will before we were even married and did something similar to "Five Wishes", where you outline what you want when the time comes.  We've been getting around to doing this for quiet some time now.

    My grandparents left everything to each other; if my grandma died first, my grandpa got everything and vice versa.  And when they both are gone it is split up between the 3 kids.  That seems like the easiest thing to do, for me so you don't really involve family politics.

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    edited December 2011
    It's really hard to give any financial advice when we don't really know anything about your situation besides the basics. It all depends on what purpose you want the insurance policy to serve. People get life insurance for many different reasons.  If you aren't wealthy, and you strictly want something that will provide for you if your DH passes away (or vice versa), then I would suggest a simple term life policy.

    But I would suggest consulting with a financial advisor.

    I know FI and I plan on getting life insurance policies. Not sure we plan on making up a will until after we have children though. We don't really have anything of value at this point in our lives, and Texas is a community property state so pretty much everything I own if I died, would go to FI anyway once we were married and I'm ok with that.

    But I'm in no way a financial advisor or lawyer, that's just my opinion!
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    edited December 2011
    Insurance - It depends on what you want covered if either of you were to die.  Whole life insurance means just that - you are covered for your whole life (as long as you keep paying the premiums), but is a bit pricey.  Term insurance covers you for a certain period of time.  20 year term covers you for 20 years. 

    There are a lot of factors to consider.  A lot of people get insurance while they are relatively young because they will get a good rating.  Your premium also depends on the rating you get.  Good rating = lower premium.

    Be a little wary if your insurance agent is really pushing whole life (doesn't tell you much about term options).  Whole life is more expensive = higher commission. 

    That's my two cents.  HTH.
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    stephl3055stephl3055 member
    First Comment
    edited December 2011
    As far as the life insurance goes, we have a mortgage and 2 cars that are being paid for currently.  So I guess we would need something to cover at least that much, plus funeral costs for one or both of us. 

    One of the insurances we were quoted was really resonable for about the first 25 years, then the premiums jumped up to crazy amounts.  Like thousands of dollars a month.  I was thinking we could keep the policy up until the 25 years, then cancel the policy at the point that it becomes unaffordable.  We will have our house paid off in 25 years, so we wouldn't need a large insurance policy.  But essentially, if nothing ever happens to either of us (hopefully), we will have wasted 25 years worth of premiums, even though they are small amounts. 

    There are certain things I would like my mom to get back if something did happen to me, so that's why I want a will.  David understands that and I just want to make things as easy as possible now, before all of the drama and emotional stuff gets pulled in if something did happen. 
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    edited December 2011
    I have a life insurance policy through my company that they provide that is double my salary.  I also opted for the voluntary life insurance policy that I pay for that is worth $200,000.  It costs me $12 a month or so.  I pay a dollar a month for a policy on each of my kids that is worth $10,000 a piece.
    I am a single mom (was a single mom)....so my situation may be a little different.  Either way, I'm finding that there are alot of things that I haven't thought about until this year that others that are my elder have educated me on...savings bonds, etc...and the preparation that is vital to start now to build security for the future---my future, my children's future, etc.
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    edited December 2011
    I don't have a will, though...not yet.  I will have one drawn up in the next two years...that will include "5 wishes" ... and instruction with the kids and the things that I own--of which I'm sure will simply go to the FI/hubby. 
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    stephl3055stephl3055 member
    First Comment
    edited December 2011

    Thanks, Lacey.  Your post summed it up nicely.  I get confused when I try to research life insurance because there are so many terms and options.  So it sounds like there are 2 basic types, and then based on those 2 types, there are other options you can look into (like years for term life).  We were going to do the will on our own, since it's fairly simple at this point because we don't have kids.  But I will definitely consider talking to an advisor if David feels we need to.  He's even more clueless about this stuff than I am.  :)

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    edited December 2011

    Im not married yet but I have had a life insurance policy since I was 19.  Right now FI gets 40% and mom get 60 when we get married it will change to 70 to FI and 30 to mom but we havent done a will because everything even know is in both of our names and I would just want him to have it all.

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    edited December 2011
    In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/local-wedding-boards_texas-dallas-ft-worth_life-insurancewillsetc?plckFindPostKey=Cat:Local Wedding BoardsForum:102Discussion:50b54d76-d42c-4292-8335-63749e38b034Post:9178850e-e738-4e7c-9adb-e98f23f54653">Re: Life Insurance/Wills/Etc.</a>:
    [QUOTE]But essentially, if nothing ever happens to either of us (hopefully), we will have wasted 25 years worth of premiums, even though they are small amounts.   
    Posted by steph13055[/QUOTE]

    Yeah, that's kind of the nature of the beast. With life insurance, you're paying for exactly that-insurance. They're betting you won't die, you're betting that you will!


    Normally the only reason you would want to go with whole life insurance is if you're using it as an investment strategy also. But, there are way better vehicles for that, than life insurance.
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    edited December 2011
    We didn't do wills - as NMac mentioned, Texas is communal property - and we would want everything going to each other anyway.  I submitted benefit forms through my work to follow the standard order of precedence - spouse first, kids next if spouse is dead, parents next, etc. - for things like my 401k and other benefits.

    This is terrible - but I can't remember if I signed us up for life insurance through my work - I think double my salary was what my ILs financial planner advised (but don't quote me on that).  One thing she mentioned (which we've certainly failed to do, but plan to) is to also look into disability insurance.  She said that even though there aren't high odds that we would get injured (DH is a student/teacher and I have a desk job), if one of us does get injured the costs can be very, very high and could mean loss of a salary for a long period of time - which would be very difficult.  So that's one more thing to consider.
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    stephl3055stephl3055 member
    First Comment
    edited December 2011

    Lacey, again, thank you so much for your help.  I kind of feel like we would be better off with the term insurance based on what I've been reading here so far.  So I think I will do some more research on just that type and see where that takes me.  :)

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    edited December 2011
    No problem - I completely understand.  I did not mean to overstep my bounds.  I've been volunteering pro bono since college, so I just always want to help.

    Regarding the wording on the policy.  That policy means you can convert it to a whole (permanent) policy.  You deleted your previous post, so I cannot recall the details.  But it means the it's a level term (meaning the death benefit never increases) and the rate increases significantly because it is no longer guaranteed - since your mortality increases (you are older).

    I noticed you deleted that post - and if it's because of what I said I really, truly apologize.  I honestly was only trying to help you. 
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    stephl3055stephl3055 member
    First Comment
    edited December 2011
    Sorry, I had to post and run yesterday.  Don't worry, you didn't over-step your bounds at all.  :)  I just didn't want you to spend a lot of time writing up something to explain the policy I posted about.  It seemed like that particular policy wasn't the best one for David and I after I went through it again, so that's why I deleted it after I posted it.  I will ask my insurance guy for something that is a little more basic and straight forward, like a simple term life.  Thanks!
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    edited December 2011
    Oh okay - that makes me feel better.  :)  GL with the insurance.
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    edited December 2011
    We aren't married yet but we have already talked about all this.  FI just set up life insurance with my bro-in-law and he is also setting up a will.  He does have a little girl so he is mainly worried about her but after FI dad died last year without a will it freaked him out and wanted to set it all up.  My bro-in-law does estate planning and we plan on trying for another baby shortly after we are married to we will makes wills and I will increase my current life insurance coverage.  Plus we have decided to set up disability insurance after seeing what my parents are having to go through dealing with the main provider out of work due to cancer.  We have had a lot happen in the last year that has kinda opened our eyes that unfortunately there is no guarantee we will live as long as we plan.  We would both rather be safe than sorry.  It is a grim subject but it is one we decided we needed to figure out before we were married
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    edited December 2011
    Another thing to think about is getting a Living Will which will outline what you want to happen if you end up in a situation where one of you is technically alive but unresponsive, i.e. if you get into a car crash and end up in a coma or a vegistative state that doctors belive you will never come out of.

    It's hard to think about it but imagine how hard it is for the spouse who is trying to decide whether or not to pull the life support, especially if other family members are disagreeing with their choice. It's better if you outline what you want before that situation ever happens so everyone is clear on what your and his wishes are.
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