Friday, July 23, 2010

A House of Order

One of the things that Gigi's birth inspired us to do was get our finances in order. Just today, for example, we opened a savings account to start putting money aside for her college fund. We named the account "Berkeley", because "Harvard" was just too cliché. Hey, we can aim high.

Our current project, however, is to figure out a good life insurance policy. We have been meeting with a really great financial planner who is helping us to learn the language and nature of the larger financial sector. He has some smart recommendations, but I am finding that the more people we talk to, the better informed we feel. When is the last time someone asked you, "So, how's your life insurance policy?". I have been asking my friends that question lately, and I feel wiser every time someone tells me their story. Between the questions of ten years vs. twenty years, and how much to insure for, and how much is a reasonable premium to pay each month, there are a kazillion different decisions to be made. And ironically, in the end, we all just hope that we won't have to cash in for a very, very long time.

So, now I'm going to throw it out to you: how is YOUR life insurance policy, if you have one? I hope it's not rude to pry into your finances, but if you wouldn't mind sharing a few pointers, or the reasons behind why you went with one policy over another, I would be so interested. Even more than the actual dollar amount you pay each month, I'd be really interested to hear your thoughts on the advantages and disadvantages of different approaches. Marcos and I are just starting to learn the language of the financial world, and I am soaking it all in...


Damaris @Kitchen Corners said...

we're so poor it's pretty rediculous. Enzo has $100 in his savings account thanks to my uncle.

I've thought many times about life insurance policies but never acted on it. We need to do it.

My plan is that is C dies I am moving to Hawaii to live with Pammy. She's been through it before and can help me out.

Lauren said...

I wish I had good pointers. We had a good friend who sells life insurance and he took care of the details. I did go online to make sure his prices were comparable and found that it was all pretty much the same given what we wanted. We have term policies. Mine is less than Andrew's since I'm not the money-maker however it is actually a little more expensive because the rate is locked in for 20 years (so it can't increase if I get cancer or something). Andrew's is for more because I would need to go back to school if something happened to him and so his policy would take care of us in the meantime. Anyway, it will make you feel SO much better to get it taken care of. I think we pay around $230 per year for both of our policies, but I can't quite remember. If we both died, lets just say Luke would be well taken care of. Oh, and a will is a good idea too.