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Life Insurance Update

Back in August I did a post titled, "Life Insurance - Do I have enough?".


I currently have a 5 year term policy for $50,000. I took the policy out back in December 2002, right after my daughter was born. Back then I felt that $50K was more than enough. Of course back then I didn't even know what a budget was. But after reading a post Single Ma did on life insurance I realized that I was short changing my daughter with my current life insurance policy. That scared the shyt outta me. With all the debt I currently have, my daughter would most likely get NOTHING if, God forbid, something happened to me.

I googled and found a ton of life insurance calculators on the web.
I used 3 different life insurance calculators from different websites to calculate the amount of life insurance I need. Based on my current financial picture I need between $287K to $345K worth of life insurance.

I received a letter from Statefarm, whom I have my life insurance policy with, about 3 days ago offering a $114 credit towards my policy if I did a conversion. I spoke to a rep at my agent's office today and I decided to convert my current term policy into a $50K universal life insurance policy. Click here to see the definition and benefits of a universal life insurance policy.

I made the decision to do this because I wouldn't have to do any blood work or physical exam. I automatically got the policy at a super preferred plus health class. All I had to do was say yes to the conversion. Due to my high blood pressure issues, I don't think securing a nicely sized permanent life insurance policy is gonna be so easy. So I will take any freebies that come my way. I am working on acquiring about $250,000 more but I think I will do that on a 30 year term policy. The rep quoted me $25/month for a $250K policy on a 30 year term. A $250K permanent policy was $170/month at a preferred plus health class, which is not in my budget. So the 30 year term policy looks like the best thing right now.

If I can get that $250K policy I will be looking at $50 a month for my life insurance. That's about a $40 increase in my monthly expenses. Sounds pretty good. And I will be at peace knowing my daughter will be ok. I will have $300,000 in total life insurance which falls nicely in the middle of my range.

Anyone else rethinking their current policy or currently shopping for life insurance?

Comments

SavingDiva said…
I have $30k through work...but I also don't have any dependents...you should look if you have an option through work...or even through a credit union.
Jerry said…
This makes me think. I still haven't opted for life insurance and my daughter's now 3 years old. I've got to get my act together. Reading your post may lead me to do just that.

Thanks!

Jerry
www.leads4insurance.com

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