by August » Sat Jan 19, 2008 11:53 pm
When it comes to life insurance on your children, how much do you advise that you take out. I have two children still at home and would like to insure myself along with my children. My oldest is out on his own and doing well.
My kids and I are all three healthy, I thought about taking out a small policy on each child and a bigger one on myself and naming my daughter that is still at home the beneficiary, she is going to graduate this year and move on to college, she will probably live at home while she is in school, so if something would happen to me, I want my children to be covered and not loose their home and everything that we have worked for. They are good kids, with good grades and participate in many community activities with me. I have a great relationship with all three of my kids and don't want them to worry about this sort of stuff, in fact I don't want to discuss it with them, I feel it is not appropriate.
I am looking for guidance on how much to take out and what type, I have been reading through the forum and see there are at least two different types of insurance that I could possibly purchase. I want to make the right choice, would appreciate any advice you have to give. Thank you August.
My kids and I are all three healthy, I thought about taking out a small policy on each child and a bigger one on myself and naming my daughter that is still at home the beneficiary, she is going to graduate this year and move on to college, she will probably live at home while she is in school, so if something would happen to me, I want my children to be covered and not loose their home and everything that we have worked for. They are good kids, with good grades and participate in many community activities with me. I have a great relationship with all three of my kids and don't want them to worry about this sort of stuff, in fact I don't want to discuss it with them, I feel it is not appropriate.
I am looking for guidance on how much to take out and what type, I have been reading through the forum and see there are at least two different types of insurance that I could possibly purchase. I want to make the right choice, would appreciate any advice you have to give. Thank you August.
Posted: Sun Jan 20, 2008 02:11 am Post Subject:
Hey August welcome to the insurance forum, it is good to see you here, there are a lot of knowledgeable people here that will come along and help you out with this one.
I know from being here that there is term and full life you will have to decide which one is more appropriate for you. if you look through out the forum you will find a good explanation of both of them, it has been discussed many times here in detail.
Posted: Sun Jan 20, 2008 12:24 pm Post Subject:
Thank you erb for the feedback, was hoping to get some more responses here. I have read through some of the posts and am really thinking about the term life, it sounds like a good option to me, I just want something in place, right now, I have nothing. Not very smart about these things.
Car insurance is a different story, I have had to deal with it my whole life, of course you must have it. But life insurance is not mandatory, so it is often over looked, at least in my household.
Posted: Sun Jan 20, 2008 12:59 pm Post Subject:
Hang in there, I am sure that someone else will come along and offer you some advice on this. There are professionals on every type of insurance here, just be patient, and give it a few more days before you make your decision.
Posted: Sun Jan 20, 2008 01:56 pm Post Subject:
I'm an adjuster not an agent so really not a whole lot of experience re: the best plan...I'll tell you what we did though. We took out UL and term policys on the kids when they were very very small...(premiums are small as well) We are currently looking at increasing our policys and buying two small policys for the grandbabies, but haven't made a firm decision on the ''types'' yet, have been researching, and getting quotes thus far.
There are many experienced and talented members here who should be along shortly with more info for you...
Posted: Sun Jan 20, 2008 04:04 pm Post Subject:
Thank you lori for your response, I will be keeping my eye out for those experts to come along. Maybe when you are done shopping you can share your experience here as well on the life insurance.
I see you do a lot of posting on here, you do a really good job helping people out here, if I have the car insurance questions I know who I am coming too. Hope you don't mind.
Posted: Sun Jan 20, 2008 05:48 pm Post Subject:
Hi August,
When it comes to how much life insurance to take out on your children - that depends on you. The child life policies offered online usually provide up to $30,000 of coverage, with limits increasing when your kids become adults. Some carriers offering those policies include Gerber and Globe Life.
As for term life insurance coverage on you to provide for your children, you may want to consider a few things first:
1. How much coverage do you need for your children? You can use an online life insurance needs calculator to figure that out fairly quickly.
2. How long do you need the coverage? Until they all are out of college? Until the house is paid off, etc.?
3. How much money can you afford to pay for life insurance?
Once you know these things, you may want to compare free term life insurance quotesonline from a quote provider. That way you can review the prices and plans in the convenience of your home with no sales pressure. The quote providers usually have a "1-800" number you can call with any questions and speak with a licensed insurance representative to get answers to your questions.
Level term life insurance is a popular plan that offers you premiums and coverage that remain level (the same) for the entire term of your policy - 1-30 years.
However, if you outlive your policy term, the coverage expires. You may want to consider adding renewability and convertibility to your term life policy.
Renewability offers you a guaranteed renewability of your policy, meaning you can get coverage for another term when your policy expires. However, you may need to take a physical exam, and your rates will definitely be higher on the new policy.
Convertibility means you may convert your term life policy to a permanent life insurance policy by a specific date. The premium for the permanent life insurance policy will probably be higher than the term life policy.
Term life insurance usually offers the maximum protection at the lowest rates, compared to permanent life insurance. Term life insurance is pure protection, there is no cash value build up within the policy.
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Posted: Sun Jan 20, 2008 07:08 pm Post Subject:
Hello August, welcome to the community.
Welcome to the twilight zone. There are so many different opinions about insuring your children and any suggestion I might make would certainly be challenged by someone else.
What I'd like - more than anything- is for you to make an informed decision. Gather all the information you can, consider every aspect, then stick with your choice and don't look back.
One of the chapters from my new book is called "Insuring Your Children" and I'd like to send you a copy of it. Because Lakemen might get a bit upset with me if I post the whole article on here, and I won't have a link to the book online until the publisher gives me the go-ahead, I'm kinda stuck. Go to my website, get my email address, send me yours, and Ill forward it right away.
Posted: Mon Jan 21, 2008 11:36 am Post Subject:
Thank you lori for your response, I will be keeping my eye out for those experts to come along.
There we go I knew a few would come by,Maybe when you are done shopping you can share your experience here as well on the life insurance
. I sure will...I see you do a lot of posting on here, you do a really good job helping people out here, if I have the car insurance questions I know who I am coming too. Hope you don't mind.
Thank you, and I hope you do come back for any and all insurance inquiries, and would love to see you stick around and post yourself!Posted: Mon Jan 21, 2008 11:50 am Post Subject:
See August, I knew you would get some really good advice here, hope you stick around once you get it and post with us more.
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