Browsing Category: Insurance

The Couple’s Guide to Life Insurance

counting my money

If you’re married or engaged, learning to share your personal finances is part of the experience of sharing your lives.

Being in a serious relationship usually means you not only depend on each other for emotional support, but financial support as well. If you’re sharing a mortgage or a rent payment, if you have a joint checking account, or if the two of you are planning for the future together and aligning your saving goals and spending priorities, then you also need to think about buying life insurance as part of your financial goals.

No one likes to think about death and dying, and most of us don’t feel as though we’ll die at a young age, but you really never know when it can happen. Any happy couple can be separated by an untimely accident or illness. What if one of you was to pass away? With your loved one’s passing comes not only the grief of their death, but the danger of your current lifestyle vanishing. Without that other person’s income to help pay the bills, you might find yourself slipping into financial peril.

This is why life insurance is so important, for couples of all ages. Buying life insurance gives you the ability to plan for the most catastrophic loss of all – the untimely death of your life partner. If you own a life insurance policy, your surviving loved ones will receive a significant amount of money that can help them pay the bills and move forward with life in financial comfort.

Many people are reluctant to research life insurance, or don’t know where to go for help. Life insurance can often sound like a rather bland, boring, and downright confusing topic if you’re not an expert in the field. So here are a few quick basic questions and answers that any couple should know about life insurance:

What kind of life insurance is best, term life insurance or whole life insurance?

In general, we recommend that people buy term life insurance. Term life insurance is offered for a specific “term” of years – for example, 10 years, 20 years or 30 years. That means if you buy a 30 year term life insurance policy at age 30, you will be covered until you are 60 years old – if you die at any time during the term, your family will receive the benefits of the policy. Whole life insurance can be useful for some specific situations, but most people will get a higher amount of coverage at a cheaper price if they buy term life insurance.

How much does life insurance cost?

It depends on the term, the amount of coverage, and the health of the person being covered. For example, if you’re 25 years old, in good health, a non-smoker, and you want $250,000 of coverage for a 20-year-term, you might only have to pay $30 a month (or less). If you want more coverage, for example, a $500,000 payout, or a longer 30-year term, the cost of the insurance will increase accordingly.

How much life insurance coverage do I need?

This is a hard question to answer because every person’s financial situation is different. In general, a rule of thumb is that you should have term life insurance coverage that is at least 5 times your annual salary. For example, if you earn $50,000 a year, you should buy a $250,000 term life insurance policy. However, if you need to provide for a large family, you might want to buy more. If you have young children, you might want to buy more life insurance with a long enough term to cover your family until your kids are fully grown. It all depends on your present-day income and long-range goals.

Should I get life insurance for my stay-at-home spouse?

If you are in a one-income household where only one spouse works outside the home, you should still buy life insurance for both spouses. The reason is, even if your non-income earning spouse were to die, there would still be expenses involved with replacing the unpaid labor that he/she provides for the household. If you have a stay-at-home mom raising the kids, or a stay-at-home dad doing chores around the house, you would need to hire someone else to provide child care or do the other work that is being done by the stay-at-home spouse.

Buying life insurance is not always “fun” but it’s a necessary part of strengthening your financial relationship with your partner. Fortunately, it’s easier than ever before to find affordable term life insurance that can fit the needs of any couple, at any stage of life.

About MyInsuranceExpert.com
MyInsuranceExpert.com is one of the top 10 life insurance brokerages in America. We help people find the right life insurance policy at the right price – often saving up to 75% on the cost of life insurance premiums.

We work with several major life insurance companies, but we are independent in making recommendations – we always work on the customer’s behalf to make sure that our customers get the best deal. Talk to the expert advisers at MyInsuranceExpert.com for a free quote on term life insurance.

Should You Be Thinking About Long-Term Care Now?

For young people, buying long-term care insurance is just another insurance policy that is vying for their attention. Often times, they not only have to worry about day to day bills, but they also have to consider other insurance needs like:

  • Health insurance
  • Home and auto insurance
  • Life insurance (if they have dependents counting on their income)
  • Disability insurance
However in certain situations, one may want to sit down and consider if they need long term care insurance to fill a specific need in the future. When looking at your obligations, you should weigh your current and future needs with your own financial budgets.

Long Term Care is Not Disabilty Insurance 

I think the biggest question people have is whether another insurance policy, like disability, already covers it. Long term car insurance is different from disability. It is different; think of it as gap insurance for what your health insurance doesn’t pay when you need extra care, such as in assisted living facilities. Fidelity gives an estimate of $225,000 to take care of medical costs while in retirement.

While LTC isn’t just for older people, many should consider it when thinking about retirement as they get up in age. Depending on their assets, the insurance can be crucial should something arise. If they need care and lack the cash on hand to pay out of pocket, this coverage could be the answer.

Looking at Long Term Care insurance

If someone decides taht now is the time to shop for a policy, there are a few things they need to compare with the policies they’re looking at to make sure they’re getting something valuable rather than a waste of their money.

  • Eligibility Criteria: Make sure you’re completely aware of the criteria to receive coverage. Also find out how long you have to wait before the policy kicks in.
  • Payout/Benefits Period: Some policies are for a few years, while others are much longer. Seek something reasonable for your circumstances.
  • Payout Schedule: Know exactly what the policy pays for home care, nursing homes, and assisted living.
Everyone has to weigh what’s best for their needs and their budget.

Thoughts on Insurance Needs

How are you doing with your insurance? Do you have adequate coverage? What could you be doing better? What seems to be going fine for you? I’d like to get your thoughts on long term car insurance and if it is a part of your financial plans.

Disclosure: Posts includes information sourced from Genworth Financial

Go Insurance Rates Review

If you’re looking for a great deal on car insurance, then shopping around and getting quotes can be a very smart move for your budget. I highly recommend comparing rates because that how we able to cut our auto insurance premiums, simply by switching providers. I checked online and all my memberships to see if we could lower our insurance bill. We were both good drivers, so we wanted to get a better premium without sacrificing our coverage. Along with getting some better coverage, we now also get free towing and jump starts included. That saved us some additional money as we allowed our AAA membership to lapse. (If you travel extensively, AAA has some additional services that are worth the costs.)

Every so often we review what we have to make sure it’s still a good deal. Go Insurance Rates offers you an opportunity to quickly get quotes from big insurance companies such as Progressive and Allstate.

My personal recommendation when you’re compare car insurance companies is to have a copy of your current policy to make sure you’re comparing apples to apples. If you decide to go with an auto insurance company, see if you can find a current customer of theirs to make sure you’re getting a good value. Just looking at the cheapest options isn’t always the best move.

Tips to Saving More Money on Auto Insurance

If you’re looking for more ways to trim your auto insurance premiums, here are some additional tips that can help.

  • Ask About Discounts: You may be able to get a non-smoker discount, a professional discount, a student discount, a good credit or financial stability discount, renewal and loyalty discounts, and a myriad of other discounts if you simply ask for them.
  • Embrace Safety Features and Devices: Safety features, such as airbags, anti-lock brake systems, and anti-theft systems, can help you save money on your auto insurance.
  • Don’t Buy Too Much Insurance: Although you should never skimp on insurance, it pays to be conservative and really think about the type of coverage you need before purchasing a policy. You don’t need duplicate coverage.
  • Raise Your Deductible: Raising your deductible will lower your monthly insurance costs. Of course, you will be on the hook for the deductible if something goes wrong. But if you have an emergency fund, you can easily self-insure and get your investment to pay off in a year or two.

Thoughts on Shopping for Car Insurance and Getting Better Rates

I’d love to get your thoughts on saving money with insurance. How often do you shop around for auto insurance? Have you’ve been able to save money? How much? What tips do you have on getting additional discounts?

Photo Credit: jmv