Life insurance, go or no go?! Experiances please

[Lunaty]

Since getting pregnant ive been thinking about getting out life insurance for me and my DH.

I know that the chances of something happening to either of us is pretty slim but i cant help but feel like i want to leave something behind for DH and my baby if something were to happen..

So my question is really, have any of you taken out life insurance and how much would be a good reserve?!

 

[Sarahkka]

I would suggest that life insurance is one of the most important things you can do to ensure the future of your babe and family. Not trying to scare you or sound pessimistic, but one car accident with both of you in the front seat is all it could take.
My OH and I joke all the time about the odds of both of us getting hit by the proverbial bus, but we both know that accidents do happen and neither of us wants to a) leave the other partner with a baby to raise, no partner and one less income to help make ends meet or b) both die and have our child be a burden on family and friends financially (with all the added stress and grief that entails) and not have the future that his peers do - ie, support for education, etc
We don't have a mortgage or much debt, so we worked with a financial advisor to come up with a number that suited our situation. Generally, the insurance policy is designed to cover your outstanding debt, plus any expenses you might want to cover for your child. There are all sorts of different products out there, but the most recommended for younger folks in good health is term insurance.
If you have a mortgage, I'd start with that and add to your number from there.
Hope that sort of helps?

 

[hypnorm]

Very important as is having a will!!
OH has life insurance, so that he knows we will be ok should anything happen.
We are also in the process of sorting out what would happen to the kids if anything should happen to the both of us, i.e. who they would stay with.

You are best to speak to a financial advisor really, i would suggest one but as you are not in the uk he wouldnt be much help! lol

 

[Lunaty]

Thanks girls!

My MIL's BF is insurance adviser and has given us some quotes..
Im just trying to gather some experiences and info as my DH isnt to sure yet as we are quite tight atm and he hasnt justified spending that extra money.. men! haha

 

[Vesta]

DH and I both have life insurance and critical illness cover. We took it out when we got a mortgage, because I couldn't afford it without him. I'm not sure how much we pay for it though.

 

[Seraphim]

It's a definite.

It's one of those things which parents often don't talk too much about, so as a child you don't hear too much about. If you have to take a mortgage you stumble into having to take it out, and it's only later that you realise just how valuable it is/can be.

Absolutely 100% take it out.

We've still got the same policy we took out 9 years ago... and we've been talking about updating it with bubs coming etc.

 

[angela43]

We both have life insurance, and I also have "long term care" coverage (in case I have a stroke or some other medical issue that puts me in a "nursing home"). Very important. It is far cheaper to buy this, and even qualify for it, when younger.

 

[lola84]

Definitely get life insurance!

I work as a trainee financial advisor and in our offices we recommend you take out life insurance and "unemployment, sickness, accident cover" particularly if you have kids.

Usually the life insurance would be enough to pay off your mortgage and debts so your partner wouldn't have it hanging over them.

At this stage in your life it should really rank ahead of any payments in to pensions your making - they can be made up at a later date - but with life insurance you're better to be covered just in case.

 

[Pyrrhic]

Really, really think all parents should have life insurance.

We get it automatically though OHs work. Lump sum of £60,000 plus OHs full pay every month until the date he would have retired (aged 55) then another lump sum, and his pension.

The people who you may leave behind need to be secure, and not have to pay of your credit cards, loans, mortgage, etc.

 

[Lunaty]

Thanks girls, as soon as i have everything in the budget sorted, i will be taking out life insurance.. hopefully before December..

I own a house in another country where i have unemployment, sickness, accident cover, but since i came with my DH to NZ (2 years ago) we are set on staying here for a while longer and build something up here too whilst renting out our place overseas.

 

[aurora]

Its a good idea to have 10 times your annual income on each of you. This is the rule of thumb I've learned. That way you would be covered if something happened to DH, and if something happened to you, he can get someone in to help him with the family.