Hey everyone! Haven't been here in a little while! I just made a reply on a post about thinking about our mortality, and it reminded me of something I've been thinking about for a while: life insurance. Do you have it? Does it make you feel any "safer"? As some may or may not know, DH and I are considering TTC sorta soonish, but I often think about our own mortality (I know, I'm a positive person! LOL), and I sometimes wonder what would happen to me/any future family we may have if something were to happen to him. I've just started my own business, so he's the main breadwinner in our little household. I think we considered life insurance a few years ago, but it's pretty expensive and I'm not sure if it's worth it or not. I don't like insurance: makes me feel like I'm gambling, but it's necessary. Do any of you have life insurance? Does it make you feel a little safer? Do you think it's worth it?
(I think I've also been thinking about this after an episode of The Simpsons was on TV the other night. Marge wanted Homer to get life insurance because he keeps almost killing himself. LOL.)
Both DP and I have life insurance. It will go to our DDs or each other in the event of our death. While you're young (30s) it is cheaper to take out and doesn't require medicals in the majority of cases.
We both started out with exactly the same level of insurance, but indexation means the benefit from mine goes up slightly more than his year on year. His premium is more expensive than mine, but not significantly so. TBH I'm surprised how cheap it was to take out annually, given the level of cover. It will well and truly cover the costs of raising our children if anything happens to both of us (in the manner we intended too, ie private high schools, etc, with enough so that their guardians could also provide the same education for their other children). If something happens to just one of us, it would provide financial peace of mind for the other (not to mention go a good way to paying out a mortgage). DP especially feels better about having it. Like even if something happens to him, he knows we'll be okay financially.
Life insurance was a much easier thing to organise than wills and guardianship!
We have 2 policies each - one through our super fixed at a set amount and another through a bank - they both get adjusted for CPI yearly and are set at an amount which means we can pay off our mortgage, school fees for secondary for the girls and then some money to buy breathing space (and possibly help, so nanny/gardeners) initially so the surviving partner has time to really work through the issues on hand at the time.
I was also surprised at the relatively cheap cost of the bank insurance - less than foxtel per month and an excellent product for us (no vested interest either lol). We just had to submit a form online and after some clarification it was done, mind you we were 28 + 32 at the time of issuing !
We both feel better knowing our kids will still be provided for and there should not be any crisis in terms of immediate funds - the emotional upheaval is enough.
We got it when we bought a house together (before TTC) so that the mortgage could be paid off with a bit to spare. Will probably up it when bub arrives.
It can be cheaper than you think - just shop around. I'm really glad we have it.
Chances are you already have it - through your super fund.
Most super fund's automtically give you a base level of Death and Total & Permanent Disablement Insurance when you join. Have a look at you statement and it should tell you how much cover you've got. If you think you need more cover then have a look at their website, it's usually pretty easy to change if you're relatively young.
Personally, we have chosen to only have our Life Insurance with our super funds for a whole host of reasons, but the main ones are:
• the premiums come out of our super accounts (not our day to day incomes)
• because the premiums come out of our super we are paying them with before tax dollars - this makes them much, much cheaper in the scheme of things
• the cost of the premiums is much, much lower than anything we could find ourselves with the banks and insurance companies (without taking into account that they're paid with pre-tax dollars) - this is because the super fund purchases the insurance on behalf of 100,000's of members so gets huge group buying discounts which they pass on to you.
In terms of whether it is worth it or not, well only you can make that call. Personally, we insure our car, our home, our contents and our health just in case something happens - to me insuring our future income is a no brainer and not being morbid. And yes, it does make me feel a lot more secure knowing that if anything happened to DH or I, the other would at least have enough money to continue on living the lifestyle we're accustomed to.
Life Insurance: Do You Have It? Is It Worth It?
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