Momhood Moments

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Life Insurance

December 5, 2008

Our human resources are emailing us at work regarding our company’s policy and benefits regarding insurances, and one of the benefit is about group health insurances. It’s actually something new to me since my previous works never had any benefits like this (or even deduct me of taxes…) However, I wonder if our company also provides life insurance quotes as well… It sounds a bit morbid though but you’ll never know. Accidents may happen (pwera usog) and I just wanted to make sure that I am at least ensured as well, although of course I don’t want anything bad to happen to me, I still have a long way to go and I want to see my baby Julie grow into a fulfilled woman that I want her to be. How about you? Do you believe in life insurance?

  1. I’m a broker for group insurance and typically recommend that people have 2-3x their annual salary in life insurance. The reason is so that your spouse will have time to adjust the family’s lifestyle to not having you around (sorry for being morbid too :), or go back and get more education if that’s what is needed.

    My personal feeling is that if you’re healthy, go with a broker who sells individual life insurance instead of buying it yourself online somewhere. Their expertise, relationship to insurance companies, and discounts for the amount of business they put with certain companies can all work to your advantage.

    Another idea is to buy term insurance (20 or 30 year term) and then renew it every 3-5 years that you remain healthy. That way you avoid getting some serious illness with only a couple years left before they decide not to renew your policy.

    Ok, so I realize that this was probably way more information than you were looking for from a complete stranger, lol. I was browsing blogs though and stopped to read yours πŸ™‚

  2. 2x to 3x one’s income would last just that – about two to three years. One should have 15x or more of life insurance no matter the type of insurance (term or whole life). If one could get 5% on their money (not easy today) then one would need 20x annual income to fully replace the lost income of a death.

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