2/1/11

How Much Are You Worth?

Big Daddy and I were having a conversation in the car Sunday and the topic turned into our life insurance policy.

Anyway, I am not sure how we got all morbid and what-have-you, but I  said something like, "I guess if and when I ever start making any money that significantly adds to the household income, I'll take out a policy. But I am getting old. It'll be more expensive."

OH! I remember why were talking. I was telling him about a commercial that I saw that had advertised ridiculously low rates for a term policy. I'd mention the website, but you know. Web crawlers and all.

And I can say this with some authority, because I used to have my license for life insurance. Actually, I still HAVE the license, but it is expired.

(Yes, I know what you are thinking. Jane of all trades...master of NONE).

(I think the only career paths I haven't considered are police work and garbage collection.)

So if you see this commercial that offers sixteen dollars a month for women and less than twenty-five for a man aged forty-two and a non-smoker, um. No. That's pretty unlikely. Not impossible, but unlikely.

Okay, I really do have a point. There is something that I never considered until the other day:

We purchased a term life insurance policy on my husband years ago. All-in-all, it's relatively inexpensive, however, we could save some money if we canceled it. But I am hesitant. If (KNOCK ON WOOD) something were to happen to him, the policy protects our family. While it is another expense, it holds some comfort to know we'd be okay in a catastrophic event.

We do not have a policy on me. I never felt like it was important because I don't contribute that much to the household income.

BUT.

AND THIS IS A BIG BUT.

I do have some value. Monetarily speaking, that is.

If something (AGAIN, KNOCKING ON WOOD) should happen to me, my husband would be lost and his expenses would go up while the boys are still young.

I take care of everything domestic like:

  • buying groceries
  • bill paying
  • clothes purchasing ( I know for a fact he doesn't know what sizes they wear)
  • grooming (hair cuts and the like)
  • taking them to the library
  • signing school papers
  • getting them ready to go to school
  • being home when they get home
  •  taking them to events at school
  • being involved with school
  • knowing who their friends are
  • how much and what kind of medicine they can take
  • etc. 
Just in child care alone, I save him a ton of money.

It's not that my husband is a sexist pig and expects me to take care of the chil'ren. It just worked out that way. He has the salaried job that takes him away a minimum of fifty-five hours a week. I have always worked to accommodate the children.  He would reverse roles if I had the job.

Moms (and Dads-we are all politically correct up in here), if it is financially feasible, it would be befitting for  your spouse to take out a term life policy.

Term policies are great because:
  • they are only for a set term, typically 15-20 years. About the age you would be more financially stable.
  • the premiums are inexpensive because the insurer is betting it WON'T pay out.
  • should you need to collect death benefits, your family collects the full face value. Tax-free with no annuities.
 Think about it, how MUCH are you worth?

Disclaimer:  The preceding commentary was for your information only. I have not been contacted by any company to promote or endorse any products. The content contained herein is solely for your consideration. Please contact a currently licensed insurance agent to gather more details. However, you are free to email me with questions. 







2 comments:

Jessica R. said...

This isn't something negligible. It would be a HUGE expense for him to cover even just the childcare.
In my case, my inlaws pay for daycare so if I vanished (poof!) financially my family would be no worse off. But for you? That would be huge and is definitely worth taking into account!

Lori said...

My husband and I had that talk a long time ago, about what it would cost if something happened to me while the children were young. We both have life insurance, and though mine would pay out quite a bit less than his would, it means that he and the kids would be able to keep things going with me gone, without having extra stress or hardship. This was a very good post, and I hope a lot of readers pay attention to this.

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