Life Insurance Question

[TulipsAndSunscreen]

I've read through the threads on life insurance but I'm still at a loss. We're considering buying some policies now before Africa but it's horrifically expensive. I've heard of people also getting insurance through an employer and that it's way cheaper [not that we have employers right now but we could just wait].

Is there any sense in buying policies now? We're both in great health and I just worry if we wait until residency that something could happen.

[SuzySunshine]

Life Insurance Question

If something happened to DH would you be able to pay for a funeral and stay on your feet financially? This was our big thing, if something happened to me he'd have to hire a nanny and if something happened to him I'd need some time to replace his income and get a job. Have you looked at the AMA policies? We are very happy with their coverage and prices.

[Deebs]

I would minimally get what it would cost to return your bodies to the US and have a funeral BEFORE Africa. Afterward, you can add more if you decide you can't afford it before you go.

[NYCHoosier]

Life Insurance Question

Every full-time job I've had as well as DH's residency program have provided a year's salary of life insurance at no cost with the option of purchasing additional coverage at a low rate.
If you have enough savings to pay for funerals (about $10k each) for both of you should, God forbid, something happen in Africa, I think you're fine to go without. I know you just left a pretty well paying job, but you also had a lot of expenses with the travel, two homes, and saving up for Africa. Still, with the likelihood of something happening in Africa so minute and the likelihood of one of you getting a job with free life insurance practically imminent, I imagine the price would have to be very minimal for it to be worth it at this time for you.

If you had kids and/or your resume and experiences were such that getting a nice job after you return would be difficult, I might advise differently.

Hope your travel prep is going well!

[TulipsAndSunscreen]

One thing that was mentioned to us is that while you can get a policy through your employer, you can't take it with you. So every time you switch jobs, you basically have to retake a physical OR it's likely a lower paying type of insurance. I guess we're just worried that we don't want to keep gaining and losing insurance as we switch jobs and we're so healthy now.

NYCH - packing is hectic and we're trying to get everything done. tomorrow is 2 weeks from leaving!

[v-girl]

We're without it for the first time in years -- no life insurance through his fellowship program. Makes me nervous. He's said before that he'd pack up the kids and move in with my mother. Yes, MY mother. If something happens to me. But he'll still need a nanny at least part time.

[Chrisada]

We did not have insurance for most of med. school. We just could not afford it. My mom got us each a $50,000 policy M4 year. As soon as DH started residency last month, we took out the maximum through work. I think it's 10 times his salary, but it is really cheap. We'll get better insurance that is not through his job when he becomes an attending.

[madeintaiwan]

DH had life insurance through UCD as an employee. It was free, 125k. We of course lost it when he quit to leave for medical school. We both took out policies during MS1. We upped it when he started residency. DH has a policy for 500k for $24 a month and I have a policy for 500k plus 25k on each of the 3 kids for $37 a month. My rate is higher because I increased it when I was pregnant and was considered obese. I wish we would have upped DH's to 1m, I didn't realize it wasn't that much more do it until after all the stuff was done. We'll up it after he gets the "job."

[Vishenka69]

I don't have any now that I'm not working and we're now looking to up DH's. Originally we got our own insurance on him because of the house (I wouldn't be able to carry the mortgage on my own). I would think that a simple 10 year policy for $100-150K shouldn't be too expensive, since you're both still in 20s and in good health.

[TulipsAndSunscreen]

I don't have any now that I'm not working and we're now looking to up DH's. Originally we got our own insurance on him because of the house (I wouldn't be able to carry the mortgage on my own). I would think that a simple 10 year policy for $100-150K shouldn't be too expensive, since you're both still in 20s and in good health.

That's what we thought too but a whole life 100k policy is ~$1,100 per person per year. We were shocked. But a lot of people who's advice I respect financially have said we should buy it now since it's not going to get any cheaper. I just don't know that that cost is sustainable once the loans have to be repaid when he graduates!!!

[madeintaiwan]

At this age, and time in your life, you should get TERM life insurance, not WHOLE life insurance. I believe ours is a 20 year term. Like I said, DH pays less than 300 annually and I pay less than 500 annually and I have 3 riders on my policy. We both have 500k policies. DH was already 30 and I was 29 when we signed our policies.

[Chrisada]

At this age, and time in your life, you should get TERM life insurance, not WHOLE life insurance. I believe ours is a 20 year term. Like I said, DH pays less than 300 annually and I pay less than 500 annually and I have 3 riders on my policy. We both have 500k policies. DH was already 30 and I was 29 when we signed our policies.

Who are your policies with?

At this age, and time in your life, you should get TERM life insurance, not WHOLE life insurance.

This. Whole life insurance is more of an investment vehicle. Term is probably what you're looking for at this point, and premiums are much less expensive. If you can afford it, it's probably not a bad idea to get a small policy now, just in case, heaven forbid, something happened or you picked up a disease that would make you more expensive to insure in the future. You may want to look into disability too. My policy is really cheap. DH has some coverage through school and was able to continue it even though he is technically on a leave of absence this year.

[SuzySunshine]

I totally agree, term is definitely what you want at this point - MUCH cheaper! We pay about $300 for DH and A on one policy and about $180 for me. A's rider is very small and we still need to add one for R. I don't remember if these are 10 year or 20 but they're through the AMA.

[madeintaiwan]

Who are your policies with?

Usaa.