I'm no expert but from what I recall I've mostly heard recommendations for term life insurance. It's just straight insurance and no investment component. We have some other type that we bought early on in our marriage but since then have added only term insurance. I'm the primary breadwinner in our case and have much of my insurance through my employer. That isn't always the best idea but we are at the stage of life that we have no debt and enough savings and investments that if my job ends we would no longer need that life insurance.

We have a few policies through different companies. To be honest they've been acquired so many times and there have been so many name changes that I don't even know what they are any more. You could speak with an independent insurance broker and get comparisons from several established, reputable companies.

Thank you 3Katz!

Did something in particular cause you to start thinking about this? Is everything okay?

Get term insurance and make sure you own the policy on him. My cousin was widowed twice before age 40 , so better safe than destitute.

Nothing has occurred to make us think of this now. Just want to feel safe in case.

Also don't forget about beneficiaries in retirement accounts.

You should also think of another insurance, can't think of the name ... in case your DH were to have a stroke that left him alive, but without the mental ability to do his job or pay the mortgage. We have both.

He may be able to purchase long-term disability insurance through his employer. If you are disabled it will pay you a percentage of your salary until you reach Medicare age. As far as I know it covers any kind of disability (such as a stroke) and not only work-related ones.

If you're looking for a company recommendation, we have all our insurance through Amica. They have good rates and excellent customer service. We've had a homeowner's claim and a few auto claims and they are handled very quickly.

Donna

What company (or companies) provide your Homeowners and auto coverage? Many companies offer a discount if you bundle your insurance. It's important to look into both disability and life insurance and I would speak with an independent insurance broker who sells all kinds of insurance to have them explain the differences and offer recommendations.

That's a good point about disability insurance in case you don't have that.

Definitely do a lot of shopping around or go to a broker who can do that for you. I recently purchased a life insurance policy and it was shocking how the prices varied from one company to another. I also read reviews about the companies I was considering and ruled out any that had bad ratings, complaints of problems at payout time, etc. I think there is a rating/grading system for the companies if I remember correctly.

You need to talk with a broker and even your financial advisor. We both have whole life insurance. If you buy that at a fairly young age, the rates are not bad. You also have the option of cashing that out at some point and investing. If you don't cash it out, it will continue to earn interest. After my grandfather passed away, we felt good about our choice of whole life insurance as he had quite a sizeable amount from his life insurance policies. He did have them long term. These afforded my grandmother to never have to worry about finances and to pay for her years in assisted living, which is very costly. I am forever thankful for that.

Tina, who do you use for your whole live insurance? If you do not mind my asking.

Thanks!

Rates for insurance depend on many different things. A company that offered a great rate a few years ago may not currently be the most competitive. The company tries to spread risk. So, if they have reached their cap on 50 year old non smoking customers, if you fall in that category your rate may be higher.

Most financial people suggest term insurance because of the affordability. Whole life is a form of investment and is much more expensive. Term can be $300 per year versus $3,000 for whole life. Plus, a person can often get better returns investing the $ elsewhere.

Figure out which insurance is right for your situation, research ratings for companies and then get quotes. Many companies give quotes online or you can use a broker.

edited to make more sense :)

Sometime after my late husband and I bought our house in 1999, he took out a life insurance policy equal to our mortgage. I really didn't think much about it as we both expected many more years together. Both of us worked and earned roughly the same as one another.

He died in 2004 and I received the full insurance amount. I sat on it for a year (actually put it in one-year jumbo CDs) to mull over my options while I dealt with my grief, and in 2006 paid off the mortgage, exactly as he had envisioned. Although I'm a good budgeter and saver, this single action (him acquiring a life insurance policy) more than anything else has enabled me to live with the security of a paid-off home and enough to get by comfortably.

I don't think it was an investment product. I don't remember being taxed on the amount I was paid, as it would have been substantial.

I can't remember if you have children, but if you do you may consider a policy for yourself too. Even if your husband is the breadwinner, if you were to pass he would have additional expenses for childcare. I'm home with the kids, so when we shopped for insurance we got a policy for me too, just for this reason.

It's a pain to get it established but once you're done it offers great peace of mind.

ak, we have all our insurance with Farm Bureau. We are in our mid-50s. Purchased our insurance many years ago at a good rate and the policy is now paid up. I also have a policy. Yes, you have to weigh the pros and cons, but in our case, whole life was a good choice.

Can your DH get life insurance through his employer along with his other benefits?

Generally, whole life is not a good investment. Here is an article about life insurance from Clark Howard. http://www.clark.com/most-common-questions-life-insurance

DH has a policy through work, but it isn't enough so he also has a separate term life policy that we pay for. Once the kids were grown and educated, we decreased the amount but it is still more than enough to pay off our mortgage. Also, once he hit 50 the cost rose pretty significantly. We did research online, and the company sent someone to our home to do the health screening, blood test, etc. Depending on age and amount of insurance requested, disclosure of medical records and health screening will most likely be required.

When our kids were growing up I also had a policy since I was their caregiver and someone would have had to be hired to care for them. I no longer have a policy since they are grown.

I feel for you because this life insurance/disability insurance area is so dependent upon your individual circumstances, yet the fear accompanying it can make you prey for some insurance agents. Proceed with caution.

When my DH and I were considering this several years ago, we made appointments with several agents, in addition to doing our own research.

We have both life and disability, and the amounts are based on what we could see as realistic financial needs should one of us pass or find ourselves unable to work.

In the olden days, when we had a mortgage or two, the lender offered an insurance policy that would pay off the mortgage if the bread-winner died. The cost was under $15.00 added to each monthly payment. Do lenders still offer this? It's been a long time since we've had a bank loan.

WHile I was working, I had life insurance through my emplyer, as DH does now. He also took out an additional long term policy a while back and then renewed it. I think we have another couple of years and after that, he will probably not renew it. It gets more expensive as you get older, we don't have a mortgage and each of the boys should be through their first college degree and the oldest finished with his masters by then. Our need will be much less than it was when we were looking at two boys going to college, paying off the house, etc.

I do have a small whole life policy that I bought back in my 20s. My mom was my agent and I had just bought my first house. It was a significant premium at the time -- may have paid it in 2 or more intstallments rather than all at once, but I haven't paid anything further since then. I couldn't tell you whether I would have earned more if I invested it elsewhere -- there really are so many variables in that question, but I didn't lose anything and it has been what I expected or more most of the time (cash value fluctuates as it would if the money were in the market). It really depends on your goals and big picture -- I wouldn't use whole life to be a major investment but it can be multi-purpose part on your overall financial plan. For simply covering your mortgage and helping with expenses in the case of an unexpected death, term life is generally the cheapest option.

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.

We both have it- one to replace DH's income if he dies; I could pay off the mortgage and live on his general salary as it stands now if spent/invested wisely, while mine is to cover potential childcare/housekeeping type expenses he might incuur as a single parent.

Exactly what maddielee said. I was widowed at 40 with two children. The mortgage lender had sent a card in the mail for mortgage insurance. The only restriction was "Have you been hospitalized in the last three years." DH filled it out and we received mortgage insurance. This was after trying to purchase insurance through a broker and being quoted an extremely high amount. He also had insurance through work and an old whole life insurance. The mortgage insurance saved my life. I paid that mortgage for six months until it was paid it off. See if your lender offers mortgage insurance. If your husband does not have life insurance through work, look into term life.

Does your husband not have this through his employer? What about disability insurance? Does he have a job-related pension plan you would get? An IRA? A 401K? How old are you both?