How to Buy Life Insurance for Your Husband

Transferring the financial risk of your husband's premature death to an insurance company is an important part of your family's financial plan.

Difficulty: Moderate

Instructions

Things You'll Need:

• Calculators
• Life Insurance

1. Choose an appropriate time to talk seriously with your husband about your concerns regarding financial security should he die prematurely.

2. Ask about a group life insurance benefit through your husband's employer or any professional organization to which he might belong.

3. Suggest that he obtain as much of that kind of life insurance as possible because the cost is low and he probably won't have to medically qualify.

4. Calculate how much (if any) beyond that amount of coverage you feel you would need to continue your current lifestyle.

5. Use a conservative return-on-investment figure in your calculations, such as 4 to 6 percent.

6. Have your husband apply for a personally owned life insurance policy for a term that will last at least to his retirement age for any amount that you have calculated beyond group coverage.

Tips & Warnings

• The younger and healthier your husband is, the lower the premiums for life insurance will be.
• Consider permanent insurance for personally owned coverage, rather than term insurance, if your husband is under 40 years old.
• When calculating your financial needs after the possible death of your husband, don't forget to include such factors as your employment or training needs, the cost of college education for your children, and potential costs of care for elderly parents.
• Retirement savings (IRA, pre-tax employer programs and Keough) are usually available to a surviving spouse as a death benefit.
• Free quotes for term life insurance are available on the Internet.
• If your husband smokes or is in poor health, he may still be able to get insurance at reasonable rates through an agent or agency that specializes in impaired risk.
• Consider the possibility of paying the entire insurance premium yourself if your husband resists applying because of cost.
• A medical questionnaire and a paramedical exam, scheduled by the insurance company, will be required for virtually all life insurance applications, except group life.
• Insurance applications for $250,000 or more may require a more thorough medical exam and disclosure of personal financial data.
• The cost of level-premium term insurance may soon go up, so apply as soon as possible if that kind of coverage is being considered.
• Permanent insurance premiums are many times greater than those for term insurance.
• Term insurance lasts for a given term of years and has no cash value.
• Life insurance policies will lapse, and all coverage will be lost, if premium payments are not made on time.
• Group life insurance is in force only as long as the person belongs to the group.

[markcrosenthal]

on 1/8/2008 A medical questionnaire and a paramedical exam, scheduled by the insurance company, will be required for virtually all life insurance applications, except group life. This is not true. I know of a ton of companies that will write up to $200,000 non med, just on you. You can email [e-mail] and allow me to help you find the right company.