big in vegas
MuscleChemistry Registered Member
Haha, sounds good
Is there anybody who understands life insurance???
- Thread starter big in vegas
- Start date
Haha, sounds good
Rama1214
New member
Wow..most insurance companies won't let you name a girlfriend a beneficiary and/or purchase a policy on your girlfriend (unless you're engaged..some will). Do you have any other life insurance on yourself. Are you the breadwinner? Does your girlfriend (I'm sure soon to be wife and mother??? since you got life insurance on her) work. Will she remain to work once have kids, if she is working?
big in vegas
MuscleChemistry Registered Member
Yea, I was quite surprised that I was able to purchase the policy on her as well, but they did it. Yes, I'm the breadwinner of the relationship, she doesn't work. This is the only policy I have purchased, but I do have small amount on myself through our union and my employer
Rama1214
New member
Gotcha!! So, it sounds to me like the one who assumes most of the risk in your relationship, is your girlfriend. With her being dependent on your income for survival, your loss most certainly would spell disaster for her. So based on this:
.. I'll assume there's a higher coverage amount on her term policy than your whole life (but her policy is on 10 or 20yrs). Its the main reason to purchase term, you get higher amount of coverage for a lot cheaper than you would on a whole life policy.
So, without getting into to many specifics (not even touching on if you have kids), you're priority should be to make sure that she can maintain her standard of living if you die!! In your current situation, she will depend 100% on the $$ you leave her, to survive. So, you'll need to carry much higher coverage amounts to protect her than she needs to carry because if she dies, you still have your job and income to maintain your lifestyle as it is (aside from logistical issues that can translate to more out of pocket expenses for you, you'll adapt and be ok)!!
So I'd recommend:
On you - - you should definitely have a term policy on yourself - with a term length that lasts at least until you make your last mortgage payment or slightly longer. Minimum amount of coverage should be your mortgage balance, auto loan balance, credit card balance (in her name only, unless you get married)...and if you can afford to add: 1 year of your annual income multiplied by either 5 or 10 (it comes down to what you can afford--most do 5, but need 10). This term policy is to pay off all of your debts that will normally be paid off by the time you pay your house off, as well as, give your girlfriend some income to survive on until she can draw social security &/or access your retirement accounts. It would be ok for you to carry a small whole life policy for $20-30k on top of this or even a small universal life for around $50-75k on top of the term policy. The amount of money you save by going with term, is the money your invest and save over those 20-30 years it takes you to pay your house off. After your house is paid off and your term policy ends, technically you should be self insured through your savings and retirement accounts!!
On your girlfriend - - you're not trying to get rich off her. (Again assuming no kids here) You're just making sure hef final expenses are covered, your loss of wages due to time off are covered, and maybe a tad extra. As long as you don't become dependent on her income, this situation will never change. You simply get a whole life on her for say..$20-40k. Again depending what you can afford.
Hope this helps bro :thumbsup:
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