I have had a term life policy since I was 18. I will be 40 this year. It costs me $29 every three months and if I pass before age 97 and before my husband does he will receive 80% of 256k. My husband on the other hand has a 10k policy that he took out quite a few years ago and he will be 51 this year and we are paying 123 every three months…my query is do we really need his? The reason I say that is b/c our house is paid off and the only major bill we have is my car payment. My premium every three months is rather small compared to his as well as better coverage. We have built up a nice nest egg so I just am not sure if we really need his since it is so much more every quarter and is a much lower amount than mine. And I am thinking we can take his quarterly premium and even start adding to my car payment and get my car paid off even faster…
I would keep yours, at $10 a month it is minimal for that benefit. I would drop his, not worth the benefit. Can you use your nest egg and pay the car off? Then, use the “car payment” and “his insurance payment” amounts to add to your nest egg, until you have paid back the car payoff. You could continue adding to your nest egg until you have nest egg + $10,000 (his old policy) and call him self-insured, in a manner of speaking.
Sounds like your husband has a whole life policy. What is the surrender value on it? This could help pay off the car.
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