How Much Life Insurance Should I Have And Is It Smart To Have Aditional Disability Insurance .?
Posted January 5, 2010 – 4:25 pm in: term life insurancei work, my husband is disable.I have 2 term life insurance, 1 whole life, and home insurance to pay off my mortgage in case I died. i also paid extra to get disability in addition to my work’s disablility insurance. Total payment is about $450 a month. is this too much insurance to pay. i wanted my children and husband to be cared for when i pass. also, my husband has a 403 b from his previous work that i am not sure if i should roll it over to IRA so that it could earn more money. but if i just left if alone, i could get money out of it if i needed it without paying a penalty. Where the money sits now, it is not earning any interest at all or very little every month. can you give me advice?
Tags: Aditional, Disability, Have, Insurance, Life, Much, Should, Smart
7 Comments
No one here could possibly tell you if it’s too much or too little – as you haven’t described your health, age, or limits of coverage.
You probably should pay the $250 or whatever, to have a sit-down with a financial planner, to go over your financial planning in the event of your death or disability. With a disabled husband and minor children, your financial planning needs are a bit more complicated than average, and it would be worth the extra money to get custom tailored advice from someone who isn’t trying to sell you anything.
First, it’s good you are considering the future financial security of your family. Well done!
A comparison to whats already out there is good too..http://www.surveyland.org/jump.php?link=…
Take care.
Sounds like you have some duplicate coverage.
First you need to find some with a license that is knowledgeable and you are comfortable with to go over everything you have to see what you need and don’t. I agree that the mortgage protection should go. Beyond that you really need to see someone in person.
With an IRA you need someone that is licensed to sell them to advise you and most insurance agents do not have a license for that. So, see an insurance agent about the life insurance and disability and see someone else maybe even someone in your company about the 401k.
“You and your family have adequate insurance for any eventualities”
Interesting that a “top contributor” can make a statement like that without knowing ANY of the details. There’s no reference to figuring out the amount needed, the amount in place or the future financial plans of the family. But somehow, someone thinks there’s adequate coverage. This is proof that you need to speak to a PROFESSIONAL adviser.
Go see your (or get a referral to a) financial advisor. Professional help is what you need.
You and your family have adequate insurance for any eventualities
The best advice would be to contact in independent insurance broker. They can assess what you need and how much. Personally right off the bat I would get rid of the mortgage insurance. That product is garbage. You’re better off buying more term to cover the mortgage if need be. Here are some links that explain why mortgage insurance is junk:http://www.cbc.ca/marketplace/2008/02/06…http://asset-aid.com/bank_vs.html
Whether $450/month is too much is hard to say. Depends on how much the total sum insured is really. You really can’t put a price on peace of mind in my opinion.