How much life insurance does your DH have on you?
Moms View Message Board: General Discussion: Archive June 2008:
How much life insurance does your DH have on you?
Just wondering... we're trying to figure out how much "is enough".
I don't think we have much on me. Somewhere in the 50,000 range. I think the rule of thumb we read was about replacing your salary for a year. But since I don't work, we mostly worry about daycare for the kids, but the ages of my kids that is becoming less of an issue.
nothing on me, a lot on dh.
I think it's 150K. Whatever the spouse SGLI is in the military. LOL I have no idea, really.
"Enough" is enough to pay for housekeeping and care for the children until they are old enough to go to college with a 3-5% cost of living increase factor, less whatever Social Security will pay (and SS only pays until they are 16), plus another $100,000 for emergencies, possibly private school, tutoring, etc.
And DH should be insured at his annual salary times however many years until the children finish college, plus maybe until you are able to collect Social Security, with a 3-5% cost of living increase factor, again less whatever SS will pay until each child turns 16.
Now, it is a lot less expensive to get this kind of coverage in term insurance. The premium will go up every 5 or 10 years based on your respective ages, but it is a whole lot expensive than "full life" insurance. While my children were young I carried $250,000 in term insurance and continued it, especially after my mom came to live with me, so that the mortgage, etc., would be covered if I died before mom. About a year after mom died I dropped it because it was up to about $90 a month (because of my age) and I had no one dependant on me.
We have 50,000 on me and MUCH more on dh since he is the only one bringing home money. We figured that would be enough to bury me and allow him to take some time off work. Child care isn't an issue anymore for us.
We have no life insurance policies on each other, period. We have investment accounts instead, and I think DH has a small life insurance policy through his employer.
We both had term insurance policies, but we have terminated them. I had a $100,000 policy that was purchased around 1982 or 1983, and I kept it until Jen turned 21. My premiums went up every year. I don't think either of us can even get life insurance at our ages with our health histories, so.
250,000 on me
higher amount on him
We have $300,000 on me and much more on dh.
I win, I win (LOL)! He has half a million on me and a million on him - we are both worth much more dead than alive.  God willing neither of us will ever see this money.
Ame
I think "enough" is based on what you want for your family in the event of one spouse's death, how many kids you have, your debts, etc. For us, with a small child still, we would want me to be able to stay home for a while longer, or work only minimally. (My DT pays very well, so I only work a few hours/week) If something were to happen to me, we want DH to be able to go down to half-time at his job so Nat could still have a parent at home. That's just us.
My DH has $250K and I have $175K. I used to have maybe $40K more when I worked. It's different for everyone, but that's us.
I gotta say that the title of this post gives me a knee-jerk reaction. It sounds so 1900s as if women were property. I know that's not what you intended Heidi, but that's how it sounds.
I think we have 250,000 on me and 500,000 on him. Since I am the breadwinner now, we have talked about changing the amounts, but just haven't gotten around to it. We actually want to reduce the amounts. Since we are both capable of working full-time and making a decent living, we would like just enough for either of us to take time off of work, pay off the house, and make sure the boys can go to college. We have term insurance and will drop it after the guys graduate college.
It does sound 1900's, but when you don't work because you're home with your child(ren), there's no other way to be covered.
That's our goal as well - to pay off our mortgage first and foremost, and any all debts. That would free up a huge amount of money each month, which could continue the college money deposits.
DH makes sure I (he) is covered with enough to pay off mortgage and hire a really hot house keeper he told our insurance woman this and she about fell off her chair. My husband is a very mellow guy and she knows him fairly well and he said it with a completely straight face! Too funny.
Anyway Reds, you are righ on, pay off all debts and allow for money to be accessible to "hire" out anything possible without creating a financial burden.
I think its as important if not more important that you and DH have disability insurance. If you are in an accident or have an illness that leaves you unable to care for our family, life insurance does you no good in most cases. Talk to your insurance agent about disability insurance.
Hey Ginny, The widowers pension (which an ex spouse does qualify for as long as they aren't married to someone else at the time of the ex spouses death) from SS stops three months after your youngest child turns 16, but your children receive checks until three months after they turn 18 or three months after they turn 19 if they are still attending high school. Three months after because it actually takes three months for the checks to start once you apply, so they run three months over the cut off years. There is however no drop in income, because the money that was paid out in the widows pension is divided among the children, and as the children leave the checks increase for the remaining children until the last one ages out. The checks also get a cost of living increase, yearly. The family cap is some where between 150 to 180 percent of the amount that the deceased would have received if they would have become disabled or retired and all children that receive survivors benefits qualify for Medicaid coverage.
This money is paid out to unmarried children under 18, or up to age 19 if they are attending high school full time. Under certain circumstances, benefits are also paid to stepchildren, grandchildren, or adopted children.
That said... you need to recognize, it is a check(s) you receive once a month, and it is barely above poverty level for most, it surely won't pay off a house, although it will cover the bills.. It takes three months for the checks to start, and they go back to the date you file not the date of death, so you need to file as soon as possible.
Oh and if the home receives Social Security Benefits the children qualify for grants for college, as will the surviving spouse, but I am sure the survivors income plays into that. Will need to read into that further.
I agree with disability coverage. However, in my Dh's case it only covered him for two years, from his last day of work, because his illness was not work related. Work related would have paid him for the rest of his life. That said, the suggestion to have a savings with three months worth of income put back is a good idea in the case of disability and death. Unfortunately, we didn't make enough to put much back and I had spent through our savings in a matter of weeks, because we had to wait for the disability checks to start coming in too. I believe it was only a month but it was still a month with no income.
I think you need to look at your life, the life you want the surviving spouse and your children to have. How long it takes for things to "pay out" and what they will do until the checks start coming in and go from there.. I suggest a "to do list" attached to your will and insurance policies. The top of the list should read contact social security, as I said they don't pay from the date of death, they pay from the date of filing, and then it takes three months to start getting the checks.
Here I go Three in a row.. Did some more reading.. "(which an ex spouse does qualify for as long as they aren't married to someone else at the time of the ex spouses death)", from what I have read, if you are remarried at the time of your EX spouses death, but you divorce before your youngest child, by the deceased spouse, is 16 you you will qualify for the Widows pension because you are caring for the deceased EX spouses children. So you can apply once the divorce is finalized. Unless your current husband is disabled, and collecting social security, then the rules change.. Your children under the age of 18, 19 if still in high school, will qualify whether you are married to someone else or not.
To qualify for Widows pension, the person has had to have worked 1 and 1/2 years of the 3 years prior to their death. Or they had to have been collecting SSI or SSD at the time of their death. If they were receiving benefits there is no three month waiting period. They just change over the benefits paid from SS to Widows pension and the check keeps coming. Also, if you are 50 and disabled you qualify for his 100% pension, or if you (currently) reach the age of 62 you qualify for a partial amount of the widows pension. OR if you are 65 you qualify for the 100% amount of the widows pension.
Another little known, but all over the Internet with false information, social security fact. When you divorce, you can claim off of your ex husbands retirement pension. If you were married a minimum of 10 years even if both of you remarried after the divorce.. There are guide lines, like you had to be married the 10 years, you have to be over 50 when you remarry in some cases but not all, and you have to have a copy of your divorce decree. They look at your pension, your DH's pension and your ex's pension amounts and the award you with the highest amount.
And no it doesn't impact the current spouses benefits. If the ex spouse dies you and his most recent spouse both collect 100% of his death benefit.
How does a divorced spouse qualify for benefits?
So, Keep a hold of your divorce decrees ladies.. Putting him through college may pay off for you in the end. Don't laugh, for some it might mean the difference between dog food and people food. EWW.
FYI, they are bumping the age of retirement to 67 for those born in 1960 or later, per their web site. I would assume early retirement, which is currently 62, will increase to 64 years of age.
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