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Posts tagged with: kids and money

Life Insurance Decisions

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My quarterly life insurance payment came out of my account this past week. And it prompted me to take a look at my policy. As I was looking around on the site, I saw “Conversion Option expires: 12/24/2021.” No idea what that meant.

My policy is good for 4 more years. When my ex-husband and I originally purchased the two policies, one for me and one for him, we planned it so that the amount would be enough to take care of the kids through high school. And in just 3 short years, all my kids will have graduated high school.

(I continued to pay for my ex-husband’s policy for a number of years after we split, but eventually just let it lapse. As far as I know, he does not carry any life insurance. The few times we have spoken about “what ifs” he always insists that he should be the beneficiary. Ha, NOT!)

What are My Options

Ok, so I called my life insurance policy holder to find out what conversion means.

For those like me, in the simplest terms, conversion means I can convert my term life policy to a whole life policy with no need to reapply/re-qualify (ie medical exam) if I do it before the conversion date. After that, it will require a new application and medical exam.

These are the options in a nutshell…

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 CoverageMonthly RateTerm
Current Policy$250,000$22Expires in 2024
Options to Convert or Add
Whole Life$50,000$72Rest of my life
Whole Life$100,000$188Rest of my life
Term Life$100,000$3210 years
Term Life$250,000$5910 years
</center>

Any way I go, my cost would go up almost double to keep the same coverage. And significantly more to go with whole life. Ugh!

Calling for Advice

I jumped on a call with my dad to get his advice. And the point that stuck with me was that this insurance is not for my benefit. So what is my goal with life insurance?

When it started, it was very clear, to care for the kids through high school if something happened to me.

Now, I’m not sure.

If everything continues to go as planned, I will be debt free before my current policy expires and all my kids will be at least 1 year out of high school. But I don’t know that any or even most of them will be self sufficient by then.

My initial thought is to extend the existing coverage out 10 more years. The rate is not terrible. And hopefully by 10 years they will all be pretty self sufficient. If, God forbid, something did happen to me, it would help get them all through college and maybe provide a small inheritance.

But I’m not sure…and I have a year to make any moves; although, the costs do go up every year I age. So BAD community, share your wisdom with me when it comes to life insurance please.

 

 

September Growth and Financial Goals

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I heard someone describe September 1 as a Second New Year’s, and I totally feel that. The move from summer chaos to autumn structure always resets me, but this year it especially feels true. I mean, we haven’t had a good bedtime in months and my hair has been in a messy bun since March. So I have the itch to set some goals, including financial goals.

Here are my September goals:

1. 15 No-Spend Days
2. Put $750 extra towards our debt
3. Work out 3 mornings a week
4. Leave mornings open for school
5. Play the #MinsGame

Setting September Financial Goals

1. 15 No-Spend Days

I love the idea of No Spend September (go get ‘er, Hope!), but we are still buying things to get this house settled and we have yet to do back-to-school shopping. But I don’t want to go crazy on a buying spree, so I want to have at least 15 days this month where we buy nada.

2. Put $750 extra towards our debt

I try to find $500 extra every month, but in September I should be able to do more. I have a freelance job that I have been terrible about sending in my hours for. They keep asking for my invoice, so I’m going to do that this month. They pay the most of all my jobs, so I plan to put all of it towards our debt.

We did reserve some money from the sale of our home for our debt, but we’re sitting on it a bit to make sure we don’t need it for expenses if the pandemic shuts our business down again.

I mentioned back in January (when I was young, innocent, and naive), one of our financial goals for 2020 was to pay off $30,000 of our debt principal.  Now I’m going to shoot for $20,000 instead. So far in 2020 we’ve paid off $11,802.96.

3. Work out 3 mornings a week

Guys, I feel terrible. The stress of this summer has done a number on my mind and body. Working out in the morning helps my mental health so much. Plus I’m a nicer mother/human being.

4. Leave mornings open for school

Our three kids start distance learning in a week (may the odds be ever in our favor). They’ll be in fifth, third, and Kindergarten. I often multi-task all morning doing freelance work, but I’m going to need to be available to the kids at least 9 am to noon.

I ramped up my freelance work last year when our little guy started preschool, thinking, “Heck, he’ll be in all-day Kindergarten next yearI’m going to have tons of time on my hands!” Sigh… But school is going to take a lot out of us and I want to be ready. So some of my evening Netflix time will need to be devoted to work instead.

5. Play the #MinsGame

I follow a minimalist account on Instagram that is encouraging people to get rid of 1 thing on September 1, 2 things on September 2, etc. Despite being pretty minimalist the last few years and having just moved, I still find myself unpacking and reorganizing things we just don’t want or need. (GOOD THING WE MOVED STUFF WE DON’T NEED.) Plus, focusing on minimalism always helps me buy less.

 

So here we go. Here’s to personal goals, financial goals, growth, and survival!

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