spouse's life insurance

[rhiannon777]

My husband has term life insurance which his parents purchased for him years ago. He was incorrectly diagnosed with bipolar disorder as a child, and we have been told that we should be sure to keep up this insurance, as he may not qualify for other life insurance in the future due to this past diagnosis. I'm not even sure that's correct, but I really don't think he will ever need any life insurance at all. His income is low enough ($30,000 per year or so) that I would not need it to live on should something happen to him, we do not plan to have children, and his only debt is student loans. Certainly, it's cheap enough (a couple hundred a year), but why pay for something we don't need? Thoughts?

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[dpmd]

I don't have life insurance on my husband for the reasons you listed. Even if he were to get a high paying job, my salary is more than enough in the event of his death. Once we have enough money in retirement and investment accounts I will probably get rid of my life insurance as well (for now since he is in school I feel it is more important, but when he is done he will be making enough to not significantly change his lifestyle-particularly since our mortgage is so small).

 

[michaelrack]

Certainly, it's cheap enough (a couple hundred a year), but why pay for something we don't need? Thoughts?

1. How long is the term?

2. How much $ coverage does the policy provide?

 

[LisaLou]

1. How long is the term?

2. How much $ coverage does the policy provide?

Sorry it has taken me so long to reply. It actually took me a while to find the actual terms, then (as you can see), I had to reset my SDN account (I reset my password then didn't have access to the email account I originally signed up with). Anyway, it's a 5-year term for $50,000. For what it's worth, the premium is pretty low (around $150 per year).

 

[TexasPhysician]

Sorry it has taken me so long to reply. It actually took me a while to find the actual terms, then (as you can see), I had to reset my SDN account (I reset my password then didn't have access to the email account I originally signed up with). Anyway, it's a 5-year term for $50,000. For what it's worth, the premium is pretty low (around $150 per year).

While your spouse may have different health risks than me, my term insurance for 15 years and $1.25 million is about $384/year.

I'm getting 3x the time and 25x the cash for under 3x the cost. Your plan seems expensive and not worth having at all if you can live well without your spouse. My spouse is in a low paying field and with children, it would be really tough without me. I have plenty of insurance if I die and none if my spouse does.

 

[TexasPhysician]

Sorry it has taken me so long to reply. It actually took me a while to find the actual terms, then (as you can see), I had to reset my SDN account (I reset my password then didn't have access to the email account I originally signed up with). Anyway, it's a 5-year term for $50,000. For what it's worth, the premium is pretty low (around $150 per year).

While your spouse may have different health risks than me, my term insurance for 15 years and $1.25 million is about $384/year.

I'm getting 3x the time and 25x the cash for under 3x the cost. Your plan seems expensive and not worth having at all if you can live well without your spouse. My spouse is in a low paying field and with children, it would be really tough without me. I have plenty of insurance if I die and none if my spouse does.

 

[The White Coat Investor]

I don't believe in buying insurance you don't need. Sounds like you don't need this.