Life Insurance? WTF.

I am so tired of adulting.  Yep, just made up that term.

Tonight, we have a representative (who also happens to be a good friend), coming over so that we can sign off on a life insurance policy.

Yes, we both have life insurance through our respective jobs, but it probably wouldn’t be enough now that we have Kenzie.

So we prepare for the worst and hope for the best.

Mike basically said, “I would be fine on my own with Kenzie, but if something happened to me, I would want to make sure you guys were taken care of”  ….I joked and said, “thanks a lot, I know my salary blows”

I thought the life insurance was a month-to-month thing, but you actually pay by year (in our case).  So bye-bye $1,400.  I suppose it is a small price to pay for security.  Mike will have a 30 year policy, and mine will only be for 20 years.  I am dumb when it comes to this kind of stuff, so I asked why we couldn’t just take out policies when we are like 50.  Evidently, it is much more expensive to start a plan at that age, since you are growing closer to death.  WTF?  I guess it makes sense.  Could you imagine a 90 year old taking out a policy?  They probably wouldn’t even approve it.  We will at least be locked in to our $1,400 per year/ $1 mil benefit, and it’s not going to double as a retirement fund in the event that we don’t use it (you can end up losing a ton of money on those depending on how the money is invested, and we don’t really want to gamble with our future).

This life insurance policy also requires them to come to our HOUSE and take a blood test and urine sample.  I questioned this, of course.  “Why can’t I go to my own doctor?  I don’t want some random dude missing a vein and poking me with a needle!”  I guess it is all part of the contract though, because if you were to go to your own doctor, they could POTENTIALLY write down any results you wanted, ignoring that you might have some health issues (for a price) to make sure you pass the medical portion/ rates won’t go up before you are indeed insured.  CRAZY.

I’m so glad my husband thinks of these things, because I am a moron when it comes to financial stability most of the time.  This is all to make sure Kenzie is taken care of if we kick the bucket early.  Whatever it takes!

 

 

Advertisements

1 Comment

  1. Even thought it’s been two years since I’ve worked with insurance, I still geek out over this stuff. Seriously.

    SO MANY THOUGHTS! 🙂

    One – you scared me a little when you said it was a friend who was selling the policies to you. This isn’t always bad, but sometimes people end up buying bad products (e.g. whole life policies) because they are buying from someone they trust. So the fact that you guys are getting term policies is a huge relief. Obviously this has no effect on me, but you’re my friend and I don’t want you to get ripped off. 🙂

    Two – you are not only important for your salary (even though it is probably twice what I make at both my jobs combined, haha). You contribute to the care of Kenzie (and Mike) and the running of your household, and if you were to die before she was grown and out of the house, Mike would likely need to spend some extra money to pay people to do what you do so he can continue to work and earn his salary. So it is very important to have life insurance on you regardless of what you make. Even if you didn’t bring home a dime, you should still have a good-sized policy to help replace what you do for free as a wife and mother.

    Three – if you *have* to pay for your policy annually, that’s kind of surprising. Almost all of the clients I worked with paid monthly through an EFT. However, I totally recommend paying for all insurance annually because you end up saving money in the long run. The more payments you make in a year, the more you pay total. My strategy (until getting married and having to pay way more in insurance costs due to all the stuff I now co-own, lol) was to set aside money each month in a savings account so that I could pay the premiums every six months or year, depending on the type of policy. So I’d say from here on out, set aside $115-120 a month to pay the premium next year. You’re smart and have probably already figured that out. 🙂

    Four – I agree, definitely don’t use life insurance as a retirement plan. When I worked with this stuff, we used it as part of a larger retirement plan, but really it’s not the best bet for most people. You’re better off using traditional retirement accounts like 401k, IRAs, and Roth IRAs.

    Five – Yep, people have to come to your house for blood and urine, we always called them “labs,” I don’t know if that is an insurance term or what, haha. A couple of friends here recently got life insurance policies and had this done. Not the most pleasant experience for them, but I don’t think a lot of our clients had issues with it.

    Okay, I think that’s it, longest comment ever about one of the most boring (but important) things ever. I’m so glad you guys did this!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s