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Thread: Life insurance

  1. #11
    Senior Member iris lilies's Avatar
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    Catherine, I think it is a decent idea for you to have life insurance with the idea that your death not only removes the significant income for your household, it would leave your spouse unable to pay the debt of your household. This protects him.

    As fir the 3 million of your son’s policy, I would have to put pencil to paper to determine if that is excessive. But since he has small children and he probably wants to provide a college education for them, and also he lives in an expensive part of the country, just off the top of my head 1 million or two doesn’t seem too much.

  2. #12
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    Quote Originally Posted by iris lilies View Post
    Catherine, I think it is a decent idea for you to have life insurance with the idea that your death not only removes the significant income for your household, it would leave your spouse unable to pay the debt of your household. This protects him.

    As fir the 3 million of your sonís policy, I would have to put pencil to paper to determine if that is excessive. But since he has small children and he probably wants to provide a college education for them, and also he lives in an expensive part of the country, just off the top of my head 1 million or two doesnít seem too much.
    Good point. 25 years ago when I got divorced, my ex had to maintain 1 million policy for our 3 children. And that was 25 years ago, and look at the price of gas, groceries, college, and housing since then!

  3. #13
    Senior Member iris lilies's Avatar
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    Also, for young families, they should always factor in the help that nanny government gives in the form of Social Security payments for children who have lost a parent. That is a sizable amount of money each month.

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    Maybe I am deficient in feelings of responsibility, but I've always felt I was responsible for my children, as I brought them into the world, and responsible for helping my parents, but once the children are grown, they are their own responsibility. Have always felt upon death, I have no more responsibility towards anyone, and survivors will have to figure out their lives from there. Thus I would not get insurance to pay off mortgage, but obviously, there are other ways to look at this. I am kind of surprised that I don't feel responsible for spouse after I die, but that's the way it is. And certainly not for my kids. And bills usually die with the person who wracked them up, so I would not be leaving them bills. . .

  5. #15
    Senior Member Yppej's Avatar
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    I would feel the need to have social supports in place for a disabled adult child. My son has SSI and if homeless would receive priority emergency housing placement. So even if I did not have life insurance I would not worry.

  6. #16
    Senior Member iris lilies's Avatar
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    Quote Originally Posted by Tybee View Post
    Maybe I am deficient in feelings of responsibility, but I've always felt I was responsible for my children, as I brought them into the world, and responsible for helping my parents, but once the children are grown, they are their own responsibility. Have always felt upon death, I have no more responsibility towards anyone, and survivors will have to figure out their lives from there. Thus I would not get insurance to pay off mortgage, but obviously, there are other ways to look at this. I am kind of surprised that I don't feel responsible for spouse after I die, but that's the way it is. And certainly not for my kids. And bills usually die with the person who wracked them up, so I would not be leaving them bills. . .
    In Catherine ‘s case, even though I do not know who actually accumulated the debt, it’s a safe bet to say that her assets will have to pay it so either way her husband is left without assets whether or not his name is on the debt.


    I absolutely consider my spouse upon death and all considerations related because he worked with me jointly to accumulate assets.

  7. #17
    Senior Member Teacher Terry's Avatar
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    IL, I totally agree with you and didn’t want my spouse impoverished when I died which is why we left our pensions to each other upon our death. That cost a serious reduction in our pensions. Thankfully we were able to jointly rescind that and each now have bigger pensions. I agree with Catherine being the bread winner caring term life insurance on her is the smart thing to do.

  8. #18
    Senior Member catherine's Avatar
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    Quote Originally Posted by iris lilies View Post
    In Catherine ‘s case, even though I do not know who actually accumulated the debt, it’s a safe bet to say that her assets will have to pay it so either way her husband is left without assets whether or not his name is on the debt.


    I absolutely consider my spouse upon death and all considerations related because he worked with me jointly to accumulate assets.
    Yes, the debt was jointly accrued. 3/4 of it is in the mortgage for our VT house. We still have the mortgage on our NJ house, but mentally I'm not counting that one. Then, when we moved up here, DH "had to have" a boat, which was an unexpected purchase he had to talk me into. I went into the loan for that boat very begrudgingly, but I have to say, the entire family has had countless hours of wonderful times on that boat. And because we downsized considerably, the boat was almost an extension of the house. We actually count it as living space. But we still owe on it. Then, there is small amount residual of CC debt that I've been paying down. So I definitely want the slate wiped clean. As IL said, DH and I have been on this road together, and he would have a pretty tough time if I were to go first.

    I wish I could say I didn't need the poor man's savings account at this point in my life, and I shouldn't need it, but our financial life has been interesting to say the least and so here we are.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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  9. #19
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    Quote Originally Posted by catherine View Post
    Yes, the debt was jointly accrued. 3/4 of it is in the mortgage for our VT house. We still have the mortgage on our NJ house, but mentally I'm not counting that one. Then, when we moved up here, DH "had to have" a boat, which was an unexpected purchase he had to talk me into. I went into the loan for that boat very begrudgingly, but I have to say, the entire family has had countless hours of wonderful times on that boat. And because we downsized considerably, the boat was almost an extension of the house. We actually count it as living space. But we still owe on it. Then, there is small amount residual of CC debt that I've been paying down. So I definitely want the slate wiped clean. As IL said, DH and I have been on this road together, and he would have a pretty tough time if I were to go first.

    I wish I could say I didn't need the poor man's savings account at this point in my life, and I shouldn't need it, but our financial life has been interesting to say the least and so here we are.
    With spouses who feel this way, do you each have insurance on the other, so that each is relieved of the debt and mortgage on the death of the other? Does your son have insurance on the life of DIL, since she has an income as well?

  10. #20
    Senior Member catherine's Avatar
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    Quote Originally Posted by Tybee View Post
    With spouses who feel this way, do you each have insurance on the other, so that each is relieved of the debt and mortgage on the death of the other? Does your son have insurance on the life of DIL, since she has an income as well?
    No, I think you have to look at each scenario individually. If DH were to predecease me, financially I would be no worse off. Plus, he is a smoker and has other health issues that would make life insurance very expensive. Plus, because I would be no worse off if he died buying life insurance would be nothing more than gambling against his life (at a very high cost), which I refuse to do.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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