Question
Term Life Insurances-Insurance Law?
Hi I was wondering if you would be able to look at a brief summary of my family situation and give me some suggestions.I want to get insurance but can u recomment some changes in what I presently have. I thank you. I am married and have 3 childern (ages 9, 12, and 16) I just bought a waterfront home which is valued at 500,000 with a 300,000 mortgage. My jewrely is about 10,000. We have 3 cars a 2004 BMW, a 2002 Lexus and 1997 Jeep Wrangler. My husband works at a large manufacturing firm and earns about 125 K. I run a day care center from my home and earn about 45K. I don't have any employees. My kids all go to private school - which costs me about 25 a year. We honestly have no savings or investments and almost no discretionary income at the end of the month. ( which is a main reason I am writing this!) I met with a financial planner and they suggested on purchasing a 50,000 variable life policy for each of us as an investement. I think i am worried about the high vost of these policies This is what is presently covered property risks Ho3 with no endorsements or riders, dwelling 300,000, liability 100,000, medical payments 2500/person, uninsured/underinsured motorist 100,000,collision and other than collision (100 deductible) Personal risks: Life - my husband employer paid group term 50,000, we both have 50,000 universal life policy disability - mr. murphy - employer paid group policy (LTD with a 90 day wait with benefits to age 65) I have no coverage Medical: My husband - employer paid Major Medical (family plan) myself - i have an individual plan and still pay premiums I thank you for whatever you can give me!!
5 months ago - 4 answers
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Your biggest exposure is probably auto insurance. I would suggest increasing your limits, and getting an umbrella policy. Also, increase your physical damage deductibles for damage to your vehicles. Regarding the life insurance, there are many ways to deal with that. I would increase his term life insurance. If you want more information,You can refer to this blog which show you an article about Affordable Term Life Insurance Quote and Term Life Insurance Quote : Affordable Term Life Insurance Quote Online: affordable-termlife-insurancequote ... How to get The Best Term Life Insurance Quote ARTICLE term-life-insurancequotes ... Affordable Term Life Insurance Quote VIDEOS affordable-termlife-insurancequote ... versal-life.html The Best Term Life Insurance Quote VIDEOS term-life-insurancequotes ... Definition from Answer.com www ... Hope that helps, post back if need be- regards- Richard Man U
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5 months ago
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Other Answers
You need a local agent, to sit down wiht you about this. My personal opinion - you are absolutely nuts to buy life insurance, when you have absolutely no savings, investing, or discretionary money left at the end of the month. Your house is wildly underinsured, your liability is wildly uninsured, your auto is wildly uninsured. Obviously, you and your husband's lives are wildly underinsured, but when you're one paycheck away from getting your lights shut off, AND you're making $170,000 a year in income, youve got some major, major, MAJOR spending problems. Life insurance is the LAST thing you need to worry about. Sell a car. Sell your jewelry. Sell a bunch of other stuff. Stop eating out. IF you're legit. But I strongly suspect this isn't a legit question - one woman daycares don't make $45,000 a year. And without reading any other questions, I noticed you posted, what, about 15 of them, all related to life insurance.
by mbrcatz- 5 months ago
I'm not going to go into to much detail here because of what has already been said. I just want to say that I do think you need life insurance. However, I would not recommend a variable policy. A variable policy relies on stock market performance and puts a lot of risk on the policy holder. It sounds like money is an issue so you should look at a blend of term and permanent insurance. As for the rest of your situation I think you need to find yourself a really good financial coach that can help. You really need to sit down with someone who can look at your whole financial situation. It is the interaction of all the spending you've mentioned that needs to be taken into account before any decisions are made.
by CJBowker- 5 months ago
I always recommend purchasing a permanent policy which you already have with the $50,000 Universal Life on each of you. However, because you are so strapped financially, this is what I would recommend. First of all, you have to protect the main money-maker, which is your husband. If his $125K income is gone, your family is in trouble. The way I work with my clients is calculate how much debt they have. You did not mention whether or not you owe on your cars, but if you do, then calculate them with the balance of your $300,000 mortgage. Total the full amount of your debt and expenses annually. Multiply your husband's salary 3 or 5 times. I recommend 5 times because that's the amount of time it usually takes for a spouse to recuperate from a loss. Add that figure including your debt and that's the amount of insurance you need to purchase to protect you and your family. Keep your current Universal Life policies and get a term policy on your husband for 30 years for the amount of your calculated debt. As far as your deductibles on your automobiles, I would get the highest deductible and use the extra money you've been paying the insurance company and have it automatically deposited into an emergency fund savings account. Why pay the insurance company when you can pay yourself? Unless you have a terrible dirving history, don't waste your money paying for a low deductible. I would also recommend talking to your tax preparer and find out how many deductions you are allowed to take without having to pay taxes at the end of the year. Take that extra money and invest it. When you allow too much of your money to be deducted from your paycheck, guess whose using YOUR money, and then giving you your own money back after you file your taxes? Pay yourself, not Uncle Sam. But you absolutely MUST have a system in place to have this money automatically invested or you will spend it. If your husband has a family plan for health insurance, why are you paying extra money for an individual plan? Take that extra money and put it into an investment vehicle (NOT VARIABLE UNIVERSAL LIFE). Too risky! I would recommend putting that money into a Roth IRA. By the way, that insurance agent trying to sell a $50,000 Variable Life policy to you is not working in your best interest. He obviously has not done a financial needs analysis on your family finances. CA licensed - 10 years mob442ins@yahoo.com
by mob442- 5 months ago