So, I'm 31, my wife is 30. Married almost 5 years, bought a house this past spring.
I have a year's salary worth of life insurance at work (pays triplicate upon death at work but I work in an office so small chance that happens) plus an additional $100k, which is the most supplemental I can buy without getting a physical. I bought some for my wife at work too, plus she has some from work. Not sure of the total of hers, maybe $50k-$60k? Not too much.
So I'm starting to look at buying a large main policy from my own home/auto insurer; enough to pay off the house and any outstanding debts, so that if my income were gone my wife could still live comfortably on just her income. I have requested information and am waiting to hear back, but I figured I'd put this topic out there.
From what I've read, whole life seems like the better policy, but I read an article that says that although it never goes up (and can you ever be cancelled? I know with term each time you re-up it gets more and more expensive and you can find yourself ineligible after all those years of paying for it), it can actually cost about what a mortgage costs, which isn't realistic for most people (definitely not for me). I also vaguely am understanding the life benefit of the whole policy, whereas term is strictly a death benefit (which is how I always thought all policies were, never knew there was a option that gave you benefits during life). I also realize though that a term policy can usually be converted to a whole policy without an exam, but people often don't know this? I would imagine if you did that later in life you would still pay way more for the whole life than if you had just gotten it from the start 20 years earlier or whatever?
Talk to me about life insurance; benefits of each type, pitfalls, etc.
I have a year's salary worth of life insurance at work (pays triplicate upon death at work but I work in an office so small chance that happens) plus an additional $100k, which is the most supplemental I can buy without getting a physical. I bought some for my wife at work too, plus she has some from work. Not sure of the total of hers, maybe $50k-$60k? Not too much.
So I'm starting to look at buying a large main policy from my own home/auto insurer; enough to pay off the house and any outstanding debts, so that if my income were gone my wife could still live comfortably on just her income. I have requested information and am waiting to hear back, but I figured I'd put this topic out there.
From what I've read, whole life seems like the better policy, but I read an article that says that although it never goes up (and can you ever be cancelled? I know with term each time you re-up it gets more and more expensive and you can find yourself ineligible after all those years of paying for it), it can actually cost about what a mortgage costs, which isn't realistic for most people (definitely not for me). I also vaguely am understanding the life benefit of the whole policy, whereas term is strictly a death benefit (which is how I always thought all policies were, never knew there was a option that gave you benefits during life). I also realize though that a term policy can usually be converted to a whole policy without an exam, but people often don't know this? I would imagine if you did that later in life you would still pay way more for the whole life than if you had just gotten it from the start 20 years earlier or whatever?
Talk to me about life insurance; benefits of each type, pitfalls, etc.
