1 Oct
Let the Fifteen-Year Life Insurance Race Begin!
Halloween may still be a month away, but there’s a whole lot of death going around in our home.
Not so much death-death as death-talk; as in, how big a party does The Wife get to have when I croak? Turns out, if I get walloped by a bus it’s going to be a huge one!
In my last post I talked about finally getting our wills done. Sticking with our theme, today I sent off my first life insurance premium. Now if, in the next 15 years, I wake up on the wrong side of the dirt The Wife gets at least $900,000. I say “at least” because if the aforementioned bus is involved she’ll get another $150,000 or so (spring for the open bar all night, honey).
Should I happen to be traveling for work at the time… whoo hoo, another $100,000 gets tacked on. Break out the china, it’s gonna be a rager!
The bottom line: should I take a dirt nap The Wife will now receive enough money to invest in a decent mutual fund that will pay out the same or more than my salary in perpetuity thus replacing my income. I am officially worth the same alive or dead now. Actually, I guess I’m worth more dead since I’m certainly not going to work forever should I outlast the policy.
This brings up a new perspective on our lives and finances, however. Can you hear it? The clock is now ticking. We have 15 years to get our act together and I mean really together.
Why 15 years? First, I’ll admit that it was cheaper than longer coverage. Second, in 15 years the kids will be off to college. Third, the house will long since have been paid off and we should have savings and retirement well under way.
So if I’m worm food in 16 years and the insurance policy has run out, but the house is paid for, the kids are gone and The Wife has a couple hundred thousand in the bank I’m thinking she’ll be just fine. She may not throw that party, but she could if she wanted to.
It feels good to be getting these ducks in a row. For about twenty-five bucks a month I know my family will have no financial worries. By-the-way, The Wife’s policy is on its way too; it’s equal opportunity daisy-pushin’ around here.
Nonetheless, I’m keeping an eye open for that bus.
the Dad
Posted by the Wife on 10/01/09 at 1:51 pm
Thanks for taking care of us, honey. Though the payoff will “replace” you, who will warm my side of the bed before I get in? Who will take out the trash/ clean the litter box/ do the dishes in the sink? Who will play rough and tumble with the kids? Who will read “Harry Potter” to us in an English accent and do all the voices?
Please, please watch out for that bus. Though we may get “taken care of”, we won’t be taken care of.
Posted by Gramps on 10/01/09 at 5:05 pm
Ahhhh……… to Wife………..now THAT was nice….. REAL NICE,
Posted by Kelsalynn on 10/01/09 at 5:24 pm
hey, at least you can laugh about this stuff… I’m impressed your policy is only $25/month. And Wifey- your comment was so incredibly nice! Someone DOES like you Dad! : P
Posted by Music Man on 10/02/09 at 11:23 am
I know that I will be looking at insurance in the near future but I haven’t gotten to that week’s lesson yet. My wife is very squeamish about death so it out to be interesting trying to figure out how much I am worth to her
Posted by La Diva on 10/04/09 at 5:55 pm
Who did you get your Insurance through? That’s a screaming good bargain on a term policy!!
Posted by the Dad on 10/04/09 at 7:43 pm
Hi Diva, I went with Zander.
Posted by Tam on 10/05/09 at 6:06 am
Seriously?!?!?! Where did you get your insurance? My husband’s million dollar in death price tag is $92/ month and my $250K is $17…
Posted by the Dad on 10/05/09 at 8:40 am
I really just went with Zander (link 2 comments up). Oh! Actually, work provides a portion of my coverage as well. We are only paying for $500k out-of-pocket. That explains everyone’s surprise. If we paid for the whole $900k the premium would be about $50/mo.
By-the-way, Tam, knowing how much you contribute to the household you should have a lot more than $250k! A stay-at-home mom would need about $400k, but you work too so…