I missed the 2008-2009 fiscal year enrollment of increased term life insurance through my work, last summer. So now I have plenty of time (until this summer) to comparison shop different kinds of life insurance.
I was happy to read that Sallie Mae would forgive my student loan debt (which is twice the amount of the mortgage — WOW) upon my death. That’s one large amount I don’t have to include in the insurance coverage calculation.
With just the Hubby’s grad loan and the mortgage added together, I could max-out the allowable work-related term life insurance benefit (4X my annual salary), with a decent amount leftover: about 1.5 years’ worth of my annual salary leftover, after the Hubby’s loan and mortgage are paid.
Of course, this still means buying individual private life insurance, in addition to what I am allowed at work. I’m leaning heavily towards a 30-year term or return-of-premium term, about $250,000 in coverage. That, and the additional coverage from my work’s life insurance, should cover any contingencies, like daycare/school tuition, college tuition, and “moving-out-with-a-good start in life” expenses for Daniel; funeral expenses for me; and replacement of my income (for a time) for the Hubby.
I haven’t decided yet on whether to get whole life insurance or not, as I’m still contributing to my mandatory Optional Retirement Plan (ORP) at work — it’s a flavor of 403 (b). What with the conservative investment returns of whole life insurance, and that the Hubby and I are already very disciplined savers (well before saving came back into fashion, thanks to the current recession), I’m thinking we’d do just as well with a money market account or even old-fashioned CD’s (like my mom would do).
Anyways — things to think about now that I have a dependent who — well — depends on me. 🙂