Buying Life Insurance (Again)

Written by Nickel - 2 Comments

I mentioned the other day that my wife and I are having second thoughts about the value of our term life insurance policies. After stewing over that for a few days, we’ve decided to re-do our policies — but this time we’re putting more thought into the amount that we’re purchasing so we won’t go through this again in a year.

I don’t have time to go into the specifics right now, so I’ll just say that I’ll be insured at roughly 20X my current annual salary, and we’re also increasing my wife’s policy amount substantially — she’s a stay-at-home mom, so it’s harder to put a specific dollar amount on her contributions. But it’s a lot. I actually have an entire post on buying life insurance in a one income family percolating in the back of my head, but that’ll have to wait for another day. Anyway, back to the story at hand…

As we did the last time we re-worked our term life insurance policies, we went through Intelliquote.com to find our new policies. We ended up selecting policies from ING ReliaStar Life (yes, that ING). They’re A+ rated, they had by far the lowest price when it came to my policy, and they came in second (by a hair) for my wife. Thus, we decided to go with them for both policies to make it easier to keep track of things.

I’ll be updating regularly as things progress just as I did last year. That way, those of you that are following along can get a feel for what the process entails.

Published on September 6th, 2006 - 2 Comments
Filed under: Insurance
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About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Comments (scroll down to add your own):

You may want to check out setting up Irrevocable Life Insurance Trusts (ILITs).
Have them own the policies (you give the money needed for the premiums each year.
If you pass on, the proceeds bipass your estate.
Good luck.
makingourway
Comment by Making Our Way — Sep 8th 2006 @ 3:02 am