Life Insurance Policy on Husband

Get the 20 year, but don't be so morbid about it. it is just a good policy to think of the person you leave behind and not wanting to leave them struggling. It goes both ways...you should get one too.

At an extra $180 a year ($15 x 12 mo) that would cost you $3,600 extra for 5 more years of coverage. Personally I think that it is worth it.

My late husband has term life to 70 and he died at 72 which meant I got nothing. The idea of term life to me isn't a positive thing. Total life is... we have no idea as to when we are going to die.

This really depends upon your debts, savings and retirement planning to date. Term insurance is usually used to pay for certain expenses that will diminish or cease to exist in the future (for example to pay off a mortgage, pay for education costs for children, pay off cars, provide an amount to allow you to retrain, move, etc). In other words, if you don't have a mortgage, your kids are through school and you have little to no debt, then you normally would not purchase term insurance.

Current average life expectancy for a 55 year old man is 78 years so both the 15 and 20 year term would not cover him. My grandfather recently passed at 89 years of age - so clearly you shouldn't be counting on your husband passing even by 85.

I would look at your debts and your timeline to pay them off - then look to your retirement plans. Will your husband have a pension? If so, will it be based on his lifetime or based on the longest survivor (either his or yours)? Typically a pension based solely on his lifetime will provide more money upfront but will leave you without that income upon his death - it works just like an annuity. Will you collect social security, will it be based upon your husband's work history or yours? Look at what you will receive.

What other retirement savings do you have? 401K, 403B, IRAs, etc.

Keep in mind as you review your finances that it is entirely possible that your husband will outlive you and make plans to care for either spouse. Keep in mind also that insurance is not to make you rich but to keep you from having to drastically decrease your standard of living. Also remember that an insurance agent is paid based upon how much insurance they sell you and you can insure for almost anything if you are willing to pay for it. Consider discussing this with a CPA or your financial planner.

Cheers,
C.

Insurance is a gambling racket that is designed to make money for insurance companies ... just like casinos are in business to make money for casinos.

If your debts will be paid in 15 years, buy a 15 year policy. If you'll have no debts in 10, buy a 10. Et cetera.

Insurance, sensibly used, is to make it so someone's death doesn't make someone else destitute. Insurance isn't supposed to make survivors richer, just stop them from being poorer. Make your decisions from that perspective.

Personally I'd go for as long a period as possible. 30 if you can swing it. ESP. if it's withdrawlable at the end of the term. Worst case scenario, it pays for the surviving partner to grieve unencumbered & provides the gift of inheritance to children/ grandchildren. Also... it's highly unlikely that he would be able to renew his L.I. at 70.

Hate to mention it (but after paying 11,000 a month for my grandmother's care for nearly 20 years -Alzheimer's- )... DO also look into longterm care insurance. We're lucky, my grandfather had been fairly wealthy... but in the end everything had to sell to take care of her, and we all had to/chose to chip in all that we could to keep her taken care of. Over 40 of us donated to the account on a monthly basis, but it was incredibly difficult. We were able to care for her for the first 4 or 5 years... then when she was 73 it became impossible. She passed 2 years ago at 93 years old... but her spirit had been walkabout for quite some time.

Get the 20 year term! I don't know if you have children, but what will you do if he passes at 71 or 72 and you have nothing? Think about the children! Even if they are adults, would you like for them to worry about mom and dad while they are building their own lives? I thank everyday for my mom who was a widow at 37 years old with 4 children who taught us that you NEVER let your insurance lapse and NEVER let your gas gauge in your car go empty (in case one of the kids get sick in the middle of the night and you have to drive to the emergency room). She passed in 2004 and had pre-paid her funeral arrangemts (I used to laugh and call it lay-away-funeral), but before that; I explained to my husband that his parents were aging and the older siblings had to do a lay-away-plan for his parents in their 80's (it was a Godsend). I know that I am rambling; but just a side note -before my father-in-law passed away; my young son at the age of 10 asked why all of his aunts and uncles were arguing about Grandpa; I told him that some of them were not in agreement about the situation. Then I told him that I had already made arrangements when "dad and I" got older and would pass on and that he and his brothers would not have to worry. You cannot imagine the relief on his face; at 10 years old, he said, "thanks, mom". I told him that his only job was to grow up and be the very best at whatever he decides to do in life as long he is honest does not hurt anyone. He is now 15 years old and his 2nd language is Japanese! Still a good boy.

Lucy B.

What if you get a 20 year on him and he dies one year after the policy runs out? How about a 30 year policy and he dies on a 31st year? There really is more to buying life insurance policy than trying to "time" when your husband might die. How are you determining the coverage amount? Are you using the human life value method or are you using the income needs method? Are you looking at your debts like a mortgage on your house? Are you looking at your other assets for example, the ability to withdraw from retirement accounts without penalty to supplement your income when you are over 59.5? Are you a business owner with value to your business? How young are your children? Do you want to pay for their college and have money set aside for it? Do you or him want to retire or change career to something you enjoy doing? What is your budget for life insurance on your husband? Are you putting away small amount of money every month for the next 35 years to create saving so you can pay for funeral/burial expenses and possible medical bills should you grow old together and have separate bathrooms?

Please work with someone who can help you answer these questions and others in your best interest. If you need a referral, I can provide one.

I think you should go for the longer term....that way you're covered.

Average life expectancy for men is 75.4 years...get the longer term insurance. =) Either that or feed him really fatty food and get him and x-box. :P (JUST KIDDING!) I wish you both long life and happiness.

Check with your insurance provider about different types of policies. The goal of insurance is replacement of income - you cannot be overinsured, as the company will not give you coverage for more than you are economically "worth". There are many types of insurance, and they cost different amounts based on the odds - term is cheaper because the potential of death during the "term" is generally lower - the older you get, the more expensive it gets, because the odds are greater you will die during that term. Variable life might be a good compromise, depending on your situation. It's a little more expensive, but some policy coverage is ongoing vs. term which ends at the end of the # of years you chose. Hope that helps.

Hello,

Personally I would not get a term life insurance. What happens when he lives past 75 you no longe have insurance. These days you live longer. Ask you insurance agent to explain the diference between a whole life insurance or Universal Life verse a term life.

Good Luck,
M.

Before making a firm decision, I would suggest you talk with your financial planner or CPA to detrmine the type of policy best suited for your needs and financial goals. You may be better served with a policy that includes retirement and death benefits, like an annuity. Term insurance is generally not the best choice because you're gambling on how long the insured will live and often the insurance company is the winner.
Make an informed decision and you'll be better off.

Hi Page!
I haven't read all the responses, so forgive me if this is a repeat. I've done a ton of research into this topic, and the conventional wisdom is that a whole life policy is a rip off. Basically it's a term life policy with a bad savings plan attached. So term life is the way to go. But here's the thing. Life insurance really isn't meant to be a retirement plan. You need it to cover your husband's salary during the years when your kids are still at home, and that's it. Maybe a 10 year term life policy.

Once your kids are out of the house, should anything happen to your husband, you would in theory be able to downsize your living quarters pretty easily since you are renting and there would only be one of you. You don't have any big expenses to pay off. No kids to support. If he is planning to retire at 65, then you only have 10 years of income left to hedge your bets against anyway.

So get the most minimal policy that you can on him - his salary, times the number of years until your youngest child graduates from college and/or leaves home. Subtract the cost of your husband's annual expenditures (i.e. if you have a car payment for his car, which you could sell if need be, or if he has any expensive hobbies you'd no longer be paying for).

Also if he were to die tomorrow, would you receive his pension? If so, you wouldn't need life insurance at all.

Once you have all that figured out, just put what you WOULD have spent on a whole-life policy into an IRA, or buy rental property with it, or whatever. You will get more bang for your buck with nearly any other investment , and you don't have to die to have access to it. =)

Points to ask your agent:
1. Convertibility of your policy
2. Difference between renewing policy at 70 vs 75

Other points to consider:
Are you putting at least a portion of the difference between whole life and term into an IRA or some other form of investment? Part of the advantage of term is to put more into savings of some sort.

Will you be debt free by that age?

Will your mortgage be paid off?

Will you have any dependents you could possibly be supporting? College for kids? Etc.

Do you have provision for long term care for yourself? Will that need to be covered from this life insurance? Independent living costs around $2,500-3,800/month now and goes up from there.

Just a few questions to consider in your decision!

I also say to get the Dave Ramsey book or better yet find a class in your area to wake your husband up. My husband and I decided to take a class & when it came to the life insurance part we had my FIL go with so he can see the importance of getting life insurance (he's almost 62). It was the best thing we did the class was a HUGE wake up call for him & the following week my FIL & MIL were meeting with agents & getting quotes. The class is super inexpensive & very informational, just go to DaveRamsey.com & go to find a class & plug in your zip code

He is 100% sure all college and post grad for the kids will be paid off in 20 years? And you won't need training for another career should he die?

I have seen college kids not do bright things with inheritances, but if you have the insurance payout, you will have the longer term mature view on things.

Figure out the difference if you just put that money away every month with a set interest rate. Show him the numbers and then discuss it calmly and rationally.

At his age, term-life is not the best option. You should look into a permenant life policy - that way it never expires unless you do not pay the premiums. In addition, look into long term care - with all of us living longer, this is also something to consider.

Good Luck.

Ps. Have a permenant life policy on husband - he did not think we needed very much - bought a home - want to increase - now has health concerns and cannot increase - take a good look into protecting your future.

When our first child was born we each got 20 yr term life policies. The purpose was that if either of us should die we'd partially replace the potential earnings of the other. When the policies expire we will not renew.

I would not get term at all. Check out what Dave Ramsey says about it. He has several books.

Term life is meant to replace lost income during the income producing years...that's why they recommend 10x your yearly salary prior to retirement, then the idea is that your retirement/savings will take over and you've made it through.....I would bet that term life insurance is not the way to go here.....talk to your financial planner about other options.

My uncle died a month before his 101st birthday. he outlived 2 wives...something to think about. Women don't neccesarily out live men, and besides, 75 is not very old anymore. You are going to be pretty PO'd if you get the 20 yr policy and he dies at 85 & still leaves you nothing. Look into a different policy, and you should be just as generous to him as you want him to be to you, get a policy on yourself too, so he won't be annoyed if you leave him nothing.

My husband is a manager of a life/health Insurance Company (US Health Benefits).. I could explain it to you but he would explain all your husbands options a lot better.. If you'd like to talk to him please email me directly and I'll give you his work #..

Hi Page,
Long term care insurance can cover care at home--that's what my mom had. It was invaluable.

Is there a 30 year plan. I would in assisted living and I have seen people get caught in a situation were the plan expires and spouse passes much later than 75. I would also look into long term care insurance. AL and skilled nursing are not cheap and the policies pay out a daily rate. Just a thought!

Think positive, assume your husband is going to live a long time, and get the 20 year policy. : )