Comments on: Updating My Will And Purchasing More Insurance

By: Jeff

Jeff — Mon, 28 Jul 2008 16:28:07 +0000

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12x salary seems low to me. Would you insure your car for only half it’s value? How about your house? Seems like you wouldn’t insure your life for less than half its value either.
End Quote

TJ,

This is apples and oranges. Your car and house insurance are variable. They depend on assessed value at the time of pay out. (Good thing life insurance isn’t that way, some of us would not get paid a dime!) Considering that life is priceless, you can’t really put a value on it can you. You are insuring your present way of life for your loved ones for a number of years to assist them until alternate income can be obtained, whatever that may be.

By: TJ

TJ — Fri, 25 Jul 2008 19:52:02 +0000

“12x your salary seems excessive. Mine is only 5x my salary and that was based so that my SO could live for 5 years at my present income. I don’t think life insurance policies should pay off bills or pay for funeral expenses but that is just me. I am amazed at how many people do not have renters, auto, and life insurance or a will. One of life’s necessary evils I guess. Thanks for the good blog.”

Jeff,

12x salary seems low to me. Would you insure your car for only half it’s value? How about your house? Seems like you wouldn’t insure your life for less than half its value either.

By: Tom

Tom — Fri, 25 Jul 2008 19:16:09 +0000

That’s awesome! That’s something no one should wait on and get done ASAP. Just the thought of leaving a family behind with nothing is scary.

By: NCN

NCN — Fri, 25 Jul 2008 19:05:05 +0000

@Jeff…
My hope is, at 12 times my salary, my wife could invest the insurance money, and if it grows at 6 to 10 percent a year, she can use those proceeds, and never have to ‘touch’ the insurance money, itself… or, she can just have one, really super awesome party…
NCN

By: Brianne

Brianne — Fri, 25 Jul 2008 17:37:05 +0000

My boyfriend and I just purchased renter’s insurance and new car insurance and going with one company was a giant savings.

I wonder if there’s a website out there that will give me advice on whether or not I need more life insurance than my company already supplies. I’m 29 with no dependents and my only debt is my car and my student loans. I’m pretty sure the student loans are forgiven upon my death and my car is worth about what I owe on it. My company supplies $10K of life insurance, which would hopefully pay for my funeral.

By: Jeff

Jeff — Fri, 25 Jul 2008 16:17:56 +0000

12x your salary seems excessive. Mine is only 5x my salary and that was based so that my SO could live for 5 years at my present income. I don’t think life insurance policies should pay off bills or pay for funeral expenses but that is just me. I am amazed at how many people do not have renters, auto, and life insurance or a will. One of life’s necessary evils I guess. Thanks for the good blog

By: PT

PT — Fri, 25 Jul 2008 15:34:32 +0000

Way to go! I need to start thinking life insurance too. Term is the one Dave Ramsey pushes, right?

As for the will…why did you go with a Lawyer instead of doing it yourself? Do you have to have a lawyer draw it up?

By: NCN

NCN — Fri, 25 Jul 2008 13:11:53 +0000

@Pastor’s Wife…
I recently purchased a new scanner/copier… and I’ll scan the docs just as soon as the will is signed… good idea!
NCN

By: Pastor's Wife

Pastor's Wife — Fri, 25 Jul 2008 13:01:41 +0000

Did you scan those documents for digital safe-keeping also? In my recent scanning frenzy, the certificates, wills and passports were among the last to be digitized. Duh.

By: John

John — Fri, 25 Jul 2008 03:59:58 +0000

Good for you for getting these important things done. I really need to get my will and life insurance in order, your post has just reminded me to get on it!