Coverage

Thirty years ago we bought our first real life insurance coverage. Bob's employer provided a small life policy but when we found out we were expecting our first child, we started to think about all the "what ifs".

We have never had to carry the insurance tied to a mortgage where the loan is covered in the case of our demise. We think it's best to cover ourselves with policies that would provide enough that the survivor would use it to cover the monthly mortgage payment.

Back in 1977 we faced the big what if. We purchased a smaller policy on my life and a significantly larger policy on Bob. If I died, Bob would have a cushion to give him some freedom to find childcare. If he passed, I would have a large amount that hopefully would be handled properly to live off for a few years.

Term life insurance is cheaper than whole life. We still have our policies which are a combination of term coverage and some cash growth. We no longer need these policies but continue to make the payments. At this point in our lives, the costs should probably be used to purchase long term health care.

That's another big what if. Hard to face some of life's what ifs but they are important.

'til later