Dying sucks.

December 19, 2011 · 33 comments

Life insurance is arguably the most boring personal finance topic known to man. In fact, it’s so boring I’ve only talked about it once before. It’s time to try to make life insurance less miserable, and more tolerable. Are ya with me? (If you aren’t with me, this should be right up your alley).

Since Girl Ninja and I are both young, employed, and relatively healthy we have personally decided that life insurance is not at the top of our priority list. But just because we haven’t made it an uber-priority, that doesn’t mean we don’t have some protection.

Four years ago, when I started my first day of work, the human resources office shoved a bunch of paperwork my way. Without really knowing what I was doing, I ended up making some pretty responsible decisions. I began contributing 8% of my gross pay to my 401K and I signed up for not only the standard life insurance policy my agency offers, but also a little bit of additional life insurance coverage.

Ask me how much life insurance coverage I have? Wait, don’t ask me. I have no freakin’ clue what my coverage is. Ha! How’s that for staying on top of your finances? I’ve been paying for life insurance for the last four years and have no idea what I’m actually getting out of it. Let me go run the numbers.


Okay, I’m back. Apparently, if one of you crazy blog stalkers actually tracks me down and de-skins me, Girl Ninja will get a pay out to the tune of $162,000. Nobody tell her that, or I might end up missing tomorrow :)

Since we have no dependents and no financial obligations, we don’t plan on beefing up our life insurance coverage in the near future. Once Girl Ninja turns into a baby factory though, it’s time to man up and protect our household (literally, since we will probably own a house by that time). It’s not like I’m familiar with
Insurance Jobs UK . Insurance confuses me :)

We would likely go with a 20 year level term life insurance policy to cover myself (I don’t like whole life insurance at all). I’m thinking $1,000,000 to $2,000,000 in coverage should ensure my families well-being in the event I pay an early visit to the big man upstairs. A quick quote says a million dollar policy would cost us $35/month and a $2MM policy runs $66/month.

If I die while Girl Ninja is a stay at home mom, that puts a lot of stress on her. But if she has a few million in the bank she should easily be able to sustain the Ninja house until she finds herself a new suitor (this whole conversation is kind of morbid isn’t it?). I’d be a pretty happy person if I was able to still take care of my family even after I was gone.

We will likely take out a $500,000  to $1,000,000 policy on GN. That way, if something happens to her, we can use this money to subsidize the new childcare expenses we’d incur as I continued to work.

Okay, enough about talking about hypothetical death. It’s depressing. BUT HOLY COW! A million dollar term policy is pretty stinkin’ cheap. I think I’m paying something like $22 a month for that $162,000 policy, so I should probably cancel it next open season and just buy my own million dollar policy for ten extra bucks. Time to quit being lazy, and start protecting my family.

Do you have life insurance on anyone in your household? If yes, how much. If no, why not?

If you like whole life insurance over term, tell me why.

Why is life insurance such an incredibly UN-sexy topic?