Life insurance is not all the same. Some policies you have a time when the policy is paid up, so you are not continuing payments for ever. Also, depending on what type policy, your payments may stay the same and not be high. There is alot to consider. I was executor of my grandfather's estate. Here is one example. He had 4 paid up policies that left my grandmother with quite a bit of money and that is in addition to property, investments, etc. that he left her. On the other hand, my FIL cashed out his paid in full policy and invested that money. He passed away about 6 years ago and my MIL has a nice nest egg invested. They also had other investments, no debt, etc. but it has enabled her to continue the lifestyle she was accustomed to, which includes traveling. So, again, it depends on what you have. But to answer your question, and at the age you stated, and with no debt, etc. I wouldn't be paying high premiums. tina

My compressor also went 1 1/2 weeks ago. I was not too upset at first because I was leaving to go to the Cape. However, I cannot stand the heat since coming back and I finally broke down and had a HVAC guy come out. It is the compressor as we thought. The freeon is full. The label on the outside says it was made in 1989 so I guess at 22 years old it lasted well. We bought this house 2 years ago and it seems everything has recently started to need to be replaced. We will be having our roof done soon. Anyways, my question is also whether I should just replace the compressor or update to a new energy efficient a.c.. The a.c. we have now is a HEIL. My furnace (oil) is a thermo pride and I believe it was replaced in 2007. The house was built in 1984. It is a raised ranch with a up and down in-law that does not run off this furnace (it has its own gas furnace). There is also a lower level apt. that is also seperate with it's own furnace (oil). However, my apt. space and the lower level tenant share the same oil tank. We only have central air. The in-law and lower apt. do not. I think my a.c. unit is a 1 ton. The service man quoted me $800 inclusive to put in a new compressor. He also said he had an old ? 6 years model a.c. (not just the compressor)that he recently took out of someones place when they updated theirs for a more energy efficient one. He said he'd give me a 1 year warranty and it would cost $5oo.oo for this used one. I did not ask for a quote on a new one because we need the money for the new roof He is suppose to be calling me back to let me know for sure the age of the old unit. Any advise would be appreciated. Sue

The basic service provided by life insurance is to replace an income: to provide the income (or service) provided by the insured in life, throughout the period of need of the dependents. The amount that one needs depends on the financial needs which the family has: in the case of the income-provider, to provide the income that the wage earner provided. I agree that it is wise to carry coverage on a SAHM, as well ... for, as several have said, a SAHM provides several services which will need to be replaced, and usually paid for, following her death Some needs are to pay off debts, including credit card, car loan, mortgage, etc., the major priority being the rate of interest being paid relative to the rate of return that may be obtained on investing the proceeds of the insurance. The main one is usually mortgage, whether immediately or over a number of years, the choice of which to use depending largely on the expected rate of return that the survivor can develop on the fund that would have been used to pay it immediately, related to the rate being paid on the mortgage - and including tax considerations on each. Many insurance companies have sold whole life, or permanent, insurance, over the years, which covers the insured until death and builds up cash values, due to the premium being higher than is needed to cover the cost of coverage in the the early years. The concept of whole-life insurance troubles many of us, as it's quite expensive. Many recommend term insurance, which runs for a given number of years, then expires. Many carry renewable term, to ensure that at the end of that term, they will be able to buy for another term ... sometimes/usually without a new medical test being required. In those situations, as the possibility of death is low in early years, the premium rates in the early years is low, then escalates in later terms, when the possibility of death during that term increases. The total need is largest then, as there will need to be assets in place that will provide an income for the survivors to provide for their ongoing needs ... which in the case of a young family will include surviving non-income-earning spouse and the young children through the years as they grow, then at least part of their advanced education. Will the former SAHM continue to stay at home, or will she go out to earn an income? Is she equipped to obtain an income which will provide a net return, above the extra costs that will be incurred? As the children grow, in the case of Mom will she join the work-force? Will she need re-education in order to do this efficiently? As the years go by, current needs usually increase for a time, which children are growing - but as years pass, the total amount neede to meet the family's needs will decrease. Thus, many families arrange for a total amount of coverage to reduce "reducing term", as the price per unit of insurance increases as the person insured ages. Once the offspring are on their own, what will Mom's income needs be? Will she be able to earn enough to live in the manner to which she had expected/become accustomed? How capable is the survivor of managing money wisely? Will s/he be able to manage it well? Some would fritter such an unaccustomed large amount away, and be destitute within a few years. In such a case, perhaps it would be well to invest much of the proceeds of the insurance into an annuity, to provide ongoing stable income ... but the rate of payout usually depends rather heavily on the rates of interest available at the time it is set up ... which will not be altered later. That would have been much better in the early '80s, when Canada Savings Bonds (briefly) paid 19% ... but not so hot in current low-interest-rate conditions. Especially since many feel that, with the huge debts being carried in our economic environment, and the lack of private savings, and with recent disruptions in the financial markets to cope with, there is almost a certainty that interest rates will soon rise, probably substantially. I have to go, as I need to do some things ... but this will help you consider soe of the parameters involved, I hope. Good wishes as you make your plans. ole joyful P.S. One other major, major issue ... don't forget the ravages that inflation will wreak on your asset base and future costs. Many retirees who forgot to factor in that problem have lived to *regret* that overloooked situation ... which usually more strongly affects people who choose to invest their assets where their future asset (and, less so, income level) is guaranteed). You want guarantees ... there's usually costs. o j

Whole life insurance is appropriate for some people (it has tax advantages as an estate planning tool, for example), but term life insurance is more appropriate for most people who just need to address the question of how their family will get by without their income. Disability insurance is also a very good idea, and often overlooked. How much insurance you need depends on a lot of things, including how much your husband makes, how old you are, how close he is to retirement, whether you have adequate retirement savings, whether you have kids and how old they are, whether you could/would find work if he passed and how much you could earn, etc. Social security benefits are a factor in several ways, first for any children under 18 and for a non-working parent caring for kids under 16, and secondly as retirement benefits under his earnings record as early as age 60. You can think of your needs in 3 parts: immediate needs after a spouse's death, such as for funeral expenses and maybe paying off a mortgage, annual income needs up to "retirement" (or when you start taking Social Security on his earnings, assuming you don't remarry), and annual income needs post-SS. If you have young kids, you may want to split up the years where you are supporting your kids from the later years when they will (hopefully) be financially independent. With kids, you may also need to look to insurance to pay for college, depending on their plans and your current savings. If you can work out your annual income needs that you want insurance to cover, you can work backward to how much money you would need insurance to provide now using a net present value calculation. If that sounds like so much gibberish to you, you might consider hiring an hourly financial planner to help you with the calculations.