February 11, 2008

Insuring The Future

Posted in Uncategorized at 6:14 pm by bitsypieces

I’ve been reading articles on finance websites–like this article at Bankrate.com–about “preparing for baby,” and life insurance is a topic that’s frequently mentioned. Hubby and I currently have a bit of life insurance on each of us, but I know it’s probably a good idea to get a little more.

However, I’m unsure how much we really need.

Some experts suggest 10 times your current salary. Since Hubby is the only one really working right now, I guess that means he’d need 10 times his salary. But that seems like way too much. I do have the skills/education/ability to work, if necessary, so I’m not sure we’d need that much on him. I think 6 times his current salary should be enough, but I guess I should discuss it with him before we make any decisions.

As for me, we’ll need at least enough to cover childcare costs should something happen to me, as well as a little extra for stuff like housecleaners. I do tend to help keep our costs low with my frugal shopping, plus I earn some extra income. Overall, I’ll probably have to at least double my current coverage.

Both of us are healthy, 33-year-old individuals who do not currently use tobacco products. So hopefully we can get a some decent term coverage for a reasonable price.

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3 Comments »

  1. Tiffany said,

    I have also been researching life insurance. I want enough life insurance to pay off all of our debt and give the kids something to live on so I figure $500,000 between hubby and I would be good, $1,000,000 would be even better. I know that $500,000 for two would be about $30 a month (I think). Currently we don’t have any but I know I need to get it.

  2. We have large policies for both Matt and me. Matt’s is about 6x his annual salary. Our finanical advisor (who had no financial interest in our policies) had us take out a larger-than-we-would-have policy for me. Not only did he say to take into account childcare, homecare, etc. He also told us that if I died, Matt may want to cut back at work to spend more time with the kids and a larger policy would partially cover the difference in his salary. Just something else to think about.

  3. […] pushed the issue of estate planning to the forefront of my mind. I mentioned life insurance in a previous post, but now I am considering the changes Hubby and I should make to our […]


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