Life Insurance- how much?
Printed From: OHbaby!
Category: General Chat
Forum Name: General Chat
Forum Description: For mums, dads, parents-to-be, grandparents, friends -- you name it! And you name the topic you want to chat about!
URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=9438
Printed Date: 21 August 2025 at 3:25am
Software Version: Web Wiz Forums 12.05 - http://www.webwizforums.com
Topic: Life Insurance- how much?
Posted By: Jennz
Subject: Life Insurance- how much?
Date Posted: 26 July 2007 at 8:39am
|
Just wondering how much life insurance you guys think is enough. DH and I finally got around to getting a new policy today and we went for 1 mil NZ but I was wondering how much everyone else has- if you're comfortable answering it.
When I told my Mum she seemed to think it wasn't enough- I guess she was thinking if we both died it has to be enough to cover both the girls for her to be able to raise them comfortably. She said that my aunt/uncle are insured for 3 mil so I guess thats what shes comparing it to. Do you think we need to look at raising it? ------------- Jen, Charlotte 7 & Kate 3 
|
Replies:
Posted By: daikini
Date Posted: 26 July 2007 at 9:10am
|
We've done $200,000 each. Our guardians for our children are Nathaniel's sister and husband, and they live in Australia. We wanted to have enough to get our children to their place on the Sunshine Coast, and have something left over towards the expenses of raising them. As we have more children, we are going to look at raising the amount.
We also wanted to choose an amount that meant if something happened to one of us, the other would have enough to get themselves established closer to family. ------------- Becca, mum of 2 girls & 3 boys |
Posted By: peanut butter
Date Posted: 26 July 2007 at 9:19am
| We had ours in place before the baby was on the way as we had a mortgage so we each had enough cover that if one of us dies the other could completely pay off the house. I guess we need to think about the possibility raising a child now too. I guess the two possibilities are one parent dies and the other needs to be able to either stop work to care for a baby or hire help. And the second would be if we both die..in which case I think my parents would be the guardians and they are more than financially set up for that. |
Posted By: Bombshell
Date Posted: 26 July 2007 at 9:22am
|
most of my clients that i have seen cover their mortgage at least...and most seem to sit around $150000 to $400000 - the premiums for above that seem excessively high in the scheme of probabilities!
I guess it depends why you need that much? and whether you can cover the cost of the premiums for life? also i guess if there is a cash out advantage to having a higher policy that you could use down the track? most cash outs seem to be around $10-20000 so not a great amouut but enough to help if need be? |
Posted By: kebakat
Date Posted: 26 July 2007 at 9:29am
|
DH is only insured for $150k but he's going to be updating that soon to $250k which is what I'm trying to get insured for.
We just wanted the mortgage covered and any costs as a result of our death (eek! lol) and then a nice amount as extra. |
Posted By: Jennz
Date Posted: 26 July 2007 at 9:33am
|
Well its a first death policy so if either of us goes the other gets it, or if we both go it goes into a trust for the girls that Mum can access. We wanted enough so if DH went I could by a comfortable home and not have to work/only work part time while the girls were growing up and have enough for uni for them etc.
If both of us went we wanted enough that Mum could get a bigger house, only work part time-or get help in and some left over for the girls for uni etc. I just figure we need enough that money won't be an worry- it would be hard enough dealing with a death without being worried about finances. The premiums aren't an issue. ------------- Jen, Charlotte 7 & Kate 3
|
Posted By: busymum
Date Posted: 26 July 2007 at 9:51am
|
We used to have $100k each, when we upped our mortgage we also upped our policies to $200k each - it would cover the mortgage and funerals but not much more. -------------  |
Posted By: mummy_becks
Date Posted: 26 July 2007 at 10:01am
|
I just went to this website http://www.sovereign.co.nz/section131.asp - http://www.sovereign.co.nz/section131.asp and it is a calculator to work out how much you should get cover for. I just did it and told me to get cover for $280000 for myself. I would have to look further into it as I was a smoker so i'm sure that would come into it somewhere. ------------- I was a puree feeder, forward facing, cot sleeping, pram pushing kind of Mum... and my kids survived! |
Posted By: Bombshell
Date Posted: 26 July 2007 at 10:52am
|
yeah using that calculator...including my income in it as a safe guard mine only comes out at $210000 so I wouldnt expect a million would be necessary esp where I have added in our assets etc and left DHs salary out. If i put his in we still only need $500000 life insurance.
that works out very similar to what i would have expected. |
Posted By: nuttymama
Date Posted: 26 July 2007 at 11:10am
|
DH is insured for $250k, and we have separate death cover on our car loan which is our only major expense. I haven't got insurance yet as the premiums are to high due to my health issues. ------------- Abigail 06/01/2005 Jayden 21/11/2001 Micheal 03/04/1997 |
Posted By: Rackhell
Date Posted: 26 July 2007 at 12:35pm
|
As to raising the life insurance to 3 mil NZ, it seems reasonable if the kids are going to be raised and living in england (pound v nz dollar notwithstanding at the moment).
Are you counting on english salaries paying the premiums forever on a 3mil life insurance?, because your circumstances may change - ie. getting back to nz and earning NZ dollars down the track might make it prohibitive expensive for you. If the kids are going to be here in NZ? Just because I haven't heard of anyone being insured for the larger amount doesn't mean that people don't do it. Most I know have enough to cover the house, and enough for each childs education. |
Posted By: KH25
Date Posted: 26 July 2007 at 3:39pm
DH and I are both insured for $300,000. We did this pre baby though when we bought our house so it was enough to pay off the mortgage. It is so morbid thinking about it though! I hated having to do it  ------------- Kelly, mum to DD, 19Jun06 (26wks 1lb15oz) DS1, 24Oct10 (32wks 4lb11oz) and DS2, 31Dec11 (32wks, 4lb11) http://lilypie.com"> 
|
Posted By: tashzmum
Date Posted: 26 July 2007 at 3:58pm
|
i feel so cheap. i am insured for 50k and df is insured for 250k. in saying that we dont have a mortgage to pay of as our house is supplied with dfs job. but i am thinking of upping it when i get pg with #2 and when we buy our first herd ------------- Natasha Jayde, 1-01-05(7lb3oz) Caroline Elisabeth, 9-04-08 (4lb15oz) Izabella Kate, 9-04-08(6lb7oz) Lexi Brenna, 23-01--2011(6lb6oz) |
Posted By: SMoody
Date Posted: 26 July 2007 at 6:28pm
|
In SA we didnt insure me as I am not working ect and his parents can take care of McKayla if anything happens to me. We did insure him. Insurance was really expensive.
He has one through work and we are changing to ones over here. And right now we are also just going to insure him and see about next year with me and taking another one out on him that will just be for McKayla one day and another one when the next kid comes. Work out what living costs will be if the one dies and take out that much. (example creche fees for like 5 years and the mortgage and other debts) That is what you have to cover on that person and then do the same on the other person. If that makes any sense. ------------- http://lilypie.com"> 
http://lilypie.com"> 
|
Posted By: kabe
Date Posted: 26 July 2007 at 6:50pm
|
I made some enquiries about this yesterday, as I thought it was important to get some life insurance with bubs on the way. We're looking at $350,000 each and the total cost would be $11 per week, which sounds reasonable to me. ------------- http://alterna-tickers.com"> 
http://lilypie.com"> 
|
Posted By: Maya
Date Posted: 26 July 2007 at 7:24pm
|
We don't have life insurance, we have a family trust set up that would provide for the girls in the event that something happened to me, so life insurance is unneccessary.
My Dad has some exorbitant amount of life insurance, and also has key man insurance, and the premiums are insane. ------------- Maya Grace (28/02/03)
 (02/01/06)
The Gremlins:Sienna Marie & Mercedes Kailah (14/10/06)
Lil miss:Chiara Louise Chloe (09/07/08)
Her ladyship:Rosalia Sophie Anais (18/06/12)
|
Posted By: aimeejoy
Date Posted: 26 July 2007 at 7:27pm
|
We dont have any either, even tho we have a mortgage, but have been thinking about it lately... ------------- Aimee Hannah 22/10/05 Greer 11/02/08 |
Posted By: Jennz
Date Posted: 26 July 2007 at 8:13pm
|
Thanks guys- makes me feel a bit better, they way Mum put it made me feel like it wouldn't be enough.
------------- Jen, Charlotte 7 & Kate 3
|
Posted By: Roksana
Date Posted: 27 July 2007 at 8:42am
|
We are both insured for $300K each. This is so that the mortgage is covered if either of us die. We still have to work to live but lets face it...mortgage is the biggest cost. But We are thinking of increasing is when we have our next bub.
------------- http://lilypie.com"> 
http://lilypie.com"> 
|
Posted By: Kortman_7235325
Date Posted: 13 December 2018 at 12:07am
| I am also considering https://www.goodmoneying.com/surrender-lic-policy-calculation/" rel="nofollow - lic jeevan anand returns for myself. I just have to discuss it with my husband as he is pretty good at these matters whereas I have always been scared of financial matters. I believe, even a small mistake can create a big problem for everyone. |