The American Dollar
OUR FAMILY. OUR MONEY. ONE PERSONAL FINANCE BLOG.
One industrious American family's focus on a financial goal of freedom. Through worldly personal finance education, here is our story.
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Our Story: Both my wife and I are 27 years old and have gone through financial hell and back. Now we are on track to financial freedom, however we are not financial advisors or professionals, just everyday people. Share our journey from a negative networth and email us if you have questions or comments! :)



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Monday, February 27, 2006

Life Insurance for a Young Couple??

Honestly I'm not a Monday person. I feel groggy and don't really WAKE UP til around 3 or 4pm, close to the time I go home. But back to the task at hand :)...The past weekend we looked at getting life insurance. I got several quotes for a new 20yr term policy. Since both my wife and I are 25/ nonsmokers/ healthy and we dont have any family history of illness, it seems that we can get about $400,000 in term life for about $20 per person, give or take a couple dollars. Im considering possibly getting this even though we dont have any children or heavy debt. Im guessing that this quote probably wont change in the next couple years... so why dont I wait til I'm about 29 or 30 when we probably will have a child and then get the insurance locked for a 20 yr term. That way we wont have to re-up til we are 50. Will I be saving anything by getting it 5 years later? My contention is that the rate will be stable whether we are 25 or 30. Really when I think about it, $40 isnt going to hurt our budget, but I find that God forbid, one of us dies, that $400,000 is MORE than enough in a debt free lifestyle.

4 Comments:

Blogger NCN said...

I have roughly 400K, and my wife has 400K, in term insurance. We purchased these when we were 21 years old and newly married. Now, it is time to "re-up" for new policies. The figures most popular with personal finance "gurus" is 8 to 12 times your annual income, in solid 20 year term life. We purchased 10 year, not knowing what we were doing back then. This time, like you, we will purchase 20 year polices at age 32, and be "set" until age 52. I say get at least some now, say 200K, just for the "cushion" that it will provide in case something happens.

11:27 PM  
Anonymous Anonymous said...

I think so too. Very good stuff. I gotta go..

2:19 PM  
Anonymous Anonymous said...

I really do enjoy reading your site. Nice stuff. You have a nice day.

3:51 AM  
Anonymous Anonymous said...

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I send you warm regards and wishes of continued success.

10:57 PM  

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