Life insurance?

MissHell · 04-30-2009, 05:29 PM

I have an appt tomorrow to get info on life insurance. My co-worker feels I have no real need for it, since I am single. Any thoughts?

If I do get, what amount would I want it for?
Enough to pay off my condo, other debt and funeral costs?
Wasn't sure about the condo payoff being included in the amount.

If/when I pass - what happens to my debt? Does my family become responsible for it?

Gas Man · 04-30-2009, 05:31 PM

I have heard a few angles.

double your mortgage
3 times your annual income

ontwo · 04-30-2009, 05:35 PM

If you have no dependents, you really don't have a need for it. Life insurance is for 3 things...
1. Pay funeral costs
2. Pay off debt
3. Replace lost income

You might want some to handle your funeral arrangements.

MissHell · 04-30-2009, 05:37 PM

Quote:

Originally Posted by ontwo

If you have no dependents, you really don't have a need for it. Life insurance is for 3 things...
1. Pay funeral costs
2. Pay off debt
3. Replace lost income

You might want some to handle your funeral arrangements.

Does the debt include the mortgage?

Particle Man · 04-30-2009, 05:43 PM

Quote:

Originally Posted by MissHell

Does the debt include the mortgage?

depends on the terms of the mortgage...

Gas Man · 04-30-2009, 05:44 PM

Don't worry about the house if you aren't trying to leave it to someone. Just let the bank foreclose on it and have it.

I should have stated that... my setup or idea is more for married couples or peeps with kids.

shmike · 04-30-2009, 05:54 PM

Quote:

Originally Posted by Gas Man

Don't worry about the house if you aren't trying to leave it to someone. Just let the bank foreclose on it and have it.

I should have stated that... my setup or idea is more for married couples or peeps with kids.

This is right.

The debt will be owed by your estate but will not pass to your next of kin.

Mikey · 04-30-2009, 05:34 PM

I am a non-attorney spokesperson, so take my advice with that in mind.

Your debt generally dies with you, but there are caveats on that. For instance, whatever is owed on your condo will still be owed or it can be forclosed on, iirc. Same goes for things like cars and motorcycles. If you leave behind a significant estate and you also have serious outstanding debts (credit cards, school loans, etc), your creditors can go after the estate to be paid off.

For me, the amount of life insurance I carry is based on who I feel like I should/would like to help out after I'm gone. I'm married, so that means I want to leave things in the best condition possible for my wife. I'm active duty, and carry max SGLI, so my death is worth about a half mil to the wife if I check out.

04-30-2009, 05:29 PM	#1
MissHell Followed the crowd over. Join Date: Nov 2008 Location: Hawaii Moto: '07 Yahama R6 Posts: 911	Life insurance? I have an appt tomorrow to get info on life insurance. My co-worker feels I have no real need for it, since I am single. Any thoughts? If I do get, what amount would I want it for? Enough to pay off my condo, other debt and funeral costs? Wasn't sure about the condo payoff being included in the amount. If/when I pass - what happens to my debt? Does my family become responsible for it?

04-30-2009, 05:31 PM	#2
Gas Man Trip's Assistant Join Date: Feb 2008 Location: Imported from Detroit Moto: 2009 HD Street Classic Posts: 12,149	I have heard a few angles. double your mortgage 3 times your annual income __________________ -Chris "Why pay somebody else to fuck up your bike?" Run Amsoil Product

04-30-2009, 05:44 PM	#6
Gas Man Trip's Assistant Join Date: Feb 2008 Location: Imported from Detroit Moto: 2009 HD Street Classic Posts: 12,149	Don't worry about the house if you aren't trying to leave it to someone. Just let the bank foreclose on it and have it. I should have stated that... my setup or idea is more for married couples or peeps with kids. __________________ -Chris "Why pay somebody else to fuck up your bike?" Run Amsoil Product

04-30-2009, 05:34 PM	#8
Mikey Raving Lunatic Join Date: Nov 2008 Location: San Antonio, Texas Moto: Concours 14 ABS, ZX6E Posts: 902	I am a non-attorney spokesperson, so take my advice with that in mind. Your debt generally dies with you, but there are caveats on that. For instance, whatever is owed on your condo will still be owed or it can be forclosed on, iirc. Same goes for things like cars and motorcycles. If you leave behind a significant estate and you also have serious outstanding debts (credit cards, school loans, etc), your creditors can go after the estate to be paid off. For me, the amount of life insurance I carry is based on who I feel like I should/would like to help out after I'm gone. I'm married, so that means I want to leave things in the best condition possible for my wife. I'm active duty, and carry max SGLI, so my death is worth about a half mil to the wife if I check out. __________________ Slow is smooth, smooth is fast.

04-30-2009, 05:35 PM	#3
ontwo Designated Drinker Join Date: Jul 2008 Location: shitville Moto: 2009 ZX6R Posts: 1,661	If you have no dependents, you really don't have a need for it. Life insurance is for 3 things... 1. Pay funeral costs 2. Pay off debt 3. Replace lost income You might want some to handle your funeral arrangements.