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I have to make some changes

November 14th, 2007 at 04:42 pm

I spent the better part of the day going over insurance and investment stuff with my parents and brother. My brother had a consultation with someone from one of the big insurance companies and was confused about what, if anything, he should buy. I *think* we managed to steer him from the whole life, although he was still skeptical about putting $20/mo. into term life for 20 years and "getting nothing" back. Ah well. You can lead a horse to water...
Anyway, I got out some of my paperwork to review with him and found that I could stand to revise some of my insurance too. Right now I have:
Term insurance for me: 3x my salary (roughly $66k given my PT salary). $50k on DH (the max I could get at the time - he couldn't get anything through his job as he was a student), and $4k on my kids (I know, morbid and unecessary, but it costs less than $1/mo). I pay $5.20 per pay period, which comes out to $135.20/annually. I can't up mine any with my current company since I can only ever get 3x my salary, but I did review the newer literature and found out that I can get $100k on DH. Unless he can get something better with his new job, I think I'll make the change now that he actually has income to replace. I can't see it being a substantial raise in price - but we certainly can spare a few more dollars per month given our low rates.
Then I started to look over my car insurance policy. Anyone know how to figure out when it's time to drop collision? We have it on both cars right now, a 2005 Sentra (we'll keep collission on this one) and a 2000 Windstar (it can probably go on this one). It would save $164/yr. off our policy of about $1300. I also want to look into raising our liability limits. I *think* we have 100/300 right now, but I have heard that you really should have more. I guess you can't be too careful these days. Lastly, I'm overdue for my defensive driving course. Rats. I hate taking that thing. The good news is that I get a cheap class through my union - $18 will save me 10% for 3 years. I guess it's a no brainer.

1 Responses to “I have to make some changes”

  1. disneysteve Says:

    I would definitely look at increasing life ins. on you and your spouse. 3x salary isn't nearly enough. The rule of thumb is 10x salary. If you can't get that much through work, get an outside policy. Even if you can get it through work, compare costs to private policies. Term life is incredibly cheap today.

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