WWYD re: life insurance

Funny this thread popped up; I finally have some actual figures from the insurance company today.

Allstate said term life insurance of 14 years and $200,000 had better premiums than if I went for a decreasing life insurance plan (the kind that would shrink as the mortgage shrank).

He quoted us $14.50/month for $200,000 on my spouse for 14 years (14 = # of years left on the mortgage). It would be a lump pay out.

Does this sound like a good thing?

To summarize, should I find myself widowed, I would not be able to afford to keep living in our current house after one year on my salary alone. I can afford a house, just a smaller house. Well come to think of it, we are paying extra on the mortgage, so I could probably swing the actual mortgage payment.
That sounds like an inexpensive premium for a $200k policy. Does the premium stay level throughout the 14 year term, even as you get older?

It's up to you whether you feel you need the extra protection. With $600k in retirement accounts, I think the worst case financial scenario is that you might have to w*rk longer to pay off the mortgage.
Top Bottom