OT: DH does not believe in life insurance
I'm so mad right now. DH and I just had a conversation about life insurance. I realize it's a sensitive topic and no one wants to think about what happens to their families after they pass, but it's also a conversation thats needed. Right now we have a universal life policy that only covers him for 200k and me for 100k. I'm currently a SAHM. We also have an income stream from out rental properties that nets around 3000 a month after expenses. DH seems to think that if and when he passes, I will either sell all the properties which will be hugely taxed because of all the capital gains, or keep them and live off of them. He wants to only rely on the rental properties as a life insurance. It doesn't really help my case that my mom is our broker and he thinks she just wants to make more money. It kills me that DH is not considering the needs and costs of raising DD3 by myself or by himself. I feel like he is not being responsible to the needs of the family. Right now our premium is only 82 a month for both of us. I just want to add a term policy that will cover the needs of our daughter until she's done university/college should he or I have an untimely death. Sorry if this is a little incoherent. I'm at a loss for words...
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I think his main issue is
I think his main issue is that I would be making money off of him dying.
He just doesn't care about anything except the present and is selfish and inconsiderate in a lot of ways. He is not thinking about our DD at all. He's probably thinking that in the event that he dies, I would just hop right back to work the next day. Leaving our DD who would have just lost not 1 but both parents, because I would be working all day. I'm not opposed to working, I would just need time to transition.
We have 4 mortgages because of our rentals. I don't even know how that would work. We are currently renting ourselves.
No, we are Canadians and all
No, we are Canadians and all our money is joint. We each take out some cash each month to use for ourselves though, so I could probably put together enough to pay a premium on my own policy.
It is less expensive. It was
It is less expensive. It was about 30k for my 4 years at university. But that included housing. My parents paid for the first 2 years and I paid the last 2. I would want the same for my DD.
Yes, Canada has a form of social security survivor benefits for the surviving spouse. It doesn't amount to much though. Around $300 a month.
Yes I just checked on the
Yes I just checked on the government website. The surviving child will get a flat rate of 266 a month
I've been reading a lot on
I've been reading a lot on the topic in family finances blogs and such and most people were saying that you need 8 to 10x the annual income for a life insurance and it got me really worried. Maybe we don't need that much.
http://goasknewton.com/life-i
http://goasknewton.com/life-insurance-the-dime-method/
The DIME method is a pretty quick way to give you a idea. We use it to give ppl an idea bc life insurance is a pretty a morbid subject but it's good to have something. At least you are being realistic about the debt that you would have to take on without your DH's income.
If you are going to get additional coverage it's best to do the younger you are and before you get any life long conditions . I like term life myself but if you outlive the term you lock in rates aren't going to look as good when you try to get a new term.
I've got one million on my
I've got one million on my DH, and he has $750,000 on me. He wanted one mill as well, but I'm a smoker so the premiums were higher so we settled with the 750.
He has a separate policy that is for his kids, and another for his ex-wife which he will cancel when the last child is 18.
You are WAAAAAY under-insured. Your husband needs to also think of all the potential unpaid medical bills and serious debts that he could leave you with as well. What if he dies in a car crash, and in that crash he also kills someone else, and their family sues the crap out of your family? You have to have money. And $200,000 is NOTHING. That's 4 years living expenses. If you have a kid in college.... it's not enough enough to live on and send her to school. OMG he's an idiot.
I believe not if they are
I believe not if they are named in a civil suit. Insurance might have to pay if found guilty in a criminal charge, but I do not think it would protect you with a civil suit.
Yes and I would definitely go
Yes and I would definitely go back to work in some capacity. But it's just the logic behind it all. He's not willing to give us the security that we would be ok financially without him around. We would have a major lifestyle change. The life insurance payout doesn't even pay for all the mortgages.
If he expects you to live off
If he expects you to live off the rental income, then the life insurance AT A MINIMUM should pay for final expenses (funeral, his debts etc) plus pay off the rental property mortgages. Plus, you would probably have to move into one of the paid off properties so your rental income would decrease.
Apparently HRNYC is also
Apparently HRNYC is also offended by life insurance? Who knew.
Regardless.... $200K is NOT enough. Finding an agent who isn;t MIL might be a good negotiation, and I would bet MIL would understand.
Perhaps rather than talking
Perhaps rather than talking about life insurance your husband would be more comfortable talking about retirement and savings/rainy day funds and college funds for your daughter.
It sounds like you have some coverage from the life insurance, if you also had some savings, a retirement plan and a college fund then that would all add up to help you out if the worst happens. Also if I were you I would seriously think about what you would have to do if you needed to work and how much you could reasonably earn (also factoring in the increased childcare costs).
Personally I look at life insurance as covering immediate costs so that I won't be immediately thrown into disarray and so that I still have some place to live and a year or two to get on my feet. At least whilst still being working age and capable of earning my own income I don't expect to be able to live the rest of my life off the insurance policy and I accept that my lifestyle may have to change to cope with the loss of his income.
Thanks for everyone's input.
Thanks for everyone's input. I think the best thing to do is to find an insurance agent (not my mom) to get through his thick skull about this. All I want is for all our debt to be covered and DD's schooling paid for and maybe 3-5 years of his income to help me get on my feet again. Is that too much to ask?
Universal and Whole Life
Universal and Whole Life Insurance isn't good. Get a Term Life Policy for both of you and get rid of the other policy. You'd be shocked at the difference of cost monthly and you can invest the difference.
Good for you!! IMO a spouse
Good for you!! IMO a spouse should want to make sure that his/her partner and family are taken care of forever in the event of their death. No one knows what their spouse will be going through when they die. Said spouse could fall ill the next day. I think only very selfish people try to stick it to someone in death. I'm glad you booted your ex! My father made sure my mother wanted for NOTHING when he passed away. He wasn't trying to look into the future and get revenge if she decided to marry again. He wanted her to be happy, to not have to depend on anyone. When she remarried, she went into her marriage independent and not because she needed a man. He made sure his children were provided for and able to start their lives with a nest egg. Sheesh..