I recently calculated my insurance and realized that it doesn't cover all the expenses my family will have. My kids are older now, the house is not paid for, funeral costs, six months living expenses, and our personal debts. I forgot most of these. On top of that, my husband needs high risk life insurance which makes buying insurance more difficult.
University for 2 - $100 000
pay mortgage $ 50 000
Our debts $ 22 000
6 months expenses $ 16 000
Funteral $ 15 000
However, there are other things. My son may want to get out on his own, which will take him about $20 000. My husband will need money to keep my daughter in her programs, and hire help around the house. That can easily add up to $8 000 a year, and she is only 11 years old, so the total is $25 000. I will also need to calculate the cost of having a solicitor see to the estate, that in itself can cost $30 000 over 10 years.
In total, I need $300 000 - about $100 000 more than I have. I am still young enough that term life insurance can be purchased at a reasonable price.
Funny thing is, we calculated it right for my husband's death, but not mine. That is another major mistake people make. The husband only does half of the jobs at home. Without enough money to pay for laundry, maid service, and even taxis to drive kids to piano lessons - it is the children who will suffer.
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