Comments on: Still Searching for Life Insurance http://www.bloggingawaydebt.com/2006/05/still-searching-for-life-insurance/ Our Journey to a Debt-Free Life Sun, 21 Mar 2010 12:23:03 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Tricia http://www.bloggingawaydebt.com/2006/05/still-searching-for-life-insurance/comment-page-1/#comment-222 Tricia Mon, 22 May 2006 06:55:00 +0000 http://www.bloggingawaydebt.com/?p=183#comment-222 I see what you are saying with wanting to know if something is wrong. I just want to have health insurance in place before finding out. The health insurance that we probably will be getting once the debt is paid down more does have a pre-existing condition clause so I don't want to uncover anything just yet. Thanks for mentioning about investing the insurance money. I didn't even think of it like that. I was mostly thinking of just being able to pay off the debt and starting with a clean slate. Maybe I will look into getting a little more to help replace the lost income. Thanks for commenting :) I see what you are saying with wanting to know if something is wrong. I just want to have health insurance in place before finding out. The health insurance that we probably will be getting once the debt is paid down more does have a pre-existing condition clause so I don’t want to uncover anything just yet.

Thanks for mentioning about investing the insurance money. I didn’t even think of it like that. I was mostly thinking of just being able to pay off the debt and starting with a clean slate. Maybe I will look into getting a little more to help replace the lost income.

Thanks for commenting :)

]]> By: Lisa http://www.bloggingawaydebt.com/2006/05/still-searching-for-life-insurance/comment-page-1/#comment-221 Lisa Mon, 22 May 2006 00:12:00 +0000 http://www.bloggingawaydebt.com/?p=183#comment-221 One way to look at it - if there was something wrong with one of you, wouldn't you want to know? You could think of the physical as a free health checkup! :) I think in many cases, the physical may be tied to a certain dollar amount. Like, if you go over $250K in coverage, then it may require a physical. I know in a previous post, you were trying to decide how much coverage to get. The reason why so many places recommend 8-10 times your income is this. If one of you were to pass away, the money from the policy could be invested in a good mutual fund and generate enough growth to fully replace the income. Here's an example - if you make $50K per year, and you have a term insurance policy (you are thinking "term" right?) for $500,000. If the policyholer passes away, the surviving spouse then invests that $500,000 someplace where they can get about a 10% return, the return will be about $50K per year (replacing the income) and you won't have to touch the money. One way to look at it – if there was something wrong with one of you, wouldn’t you want to know? You could think of the physical as a free health checkup! :)

I think in many cases, the physical may be tied to a certain dollar amount. Like, if you go over $250K in coverage, then it may require a physical. I know in a previous post, you were trying to decide how much coverage to get. The reason why so many places recommend 8-10 times your income is this. If one of you were to pass away, the money from the policy could be invested in a good mutual fund and generate enough growth to fully replace the income. Here’s an example – if you make $50K per year, and you have a term insurance policy (you are thinking “term” right?) for $500,000. If the policyholer passes away, the surviving spouse then invests that $500,000 someplace where they can get about a 10% return, the return will be about $50K per year (replacing the income) and you won’t have to touch the money.

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