Resolutions

We've spent most of January tackling one of our resolutions for this year - buying a term life insurance. Despite a seemingly nice, but pesky, insurance agent trying to sell us a universal life insurance for 5 hours straight (that's right, FIVE!), most people only need term life insurance. First, don't ever let an insurance agent into your house (you can do the same thing on internet or over the phone). Second, trust the advice of the financial experts looking out for the consumer, like my favorite Suze Orman & Clark Howard. Here are the basics:

- If you have dependents & your family would be unable to maintain their standard of living (e.g., make the mortgage payments, pay for kids' college, etc.) without your income, you need life insurance.

- Term life insurance is meant to replace your income in case of your untimely death. The rule of thumb is to buy an amount equal to 10 times your annual salary.

- Buy insurance for 20 or 30 years; the premium will stay the same during the life of the policy (We've decided to buy a 20-year policy because in 20 years Gerritt & Sophia would be done with college & able to get jobs to support themselves).

- When shopping for term life insurance, it is best to buy from a financially strong company that offers low premiums. AMBest.com offers free insurer ratings. Buy from companies that have an A+ or A++ rating.

- It's easy to comparison shop for insurance quotes using the internet at websites like Insure.com, QuickQuote.com & AccuQuote.com.

Although it's less expensive & easy to obtain term life insurance through your employer, it's wise to buy one on your own in case your place of employment changes or ends. As part of my application, I met with a medical examiner who, in addition to conducting a thorough review of my medical history, also weighed me, collected urine, drew a fasting blood sample, & did an EKG. I am relatively healthy so now is the best time to buy a life insurance rather than in 10 or 15 years when new health issues may come up. I thought the monthly premium of $60+ was too high for $750K policy, so I applied for a policy with a different company (good thing the health exams are provided by the insurance company at no cost to you). So I will have to meet with a medical examiner again. What a process!
Not to outdo myself, but during the same week I also opened a 529 plan to save for Sophia's college expenses (My husband is in charge of saving for Gerritt). Savingforcollege.com is a good place to get started. I didn't have much time to read through various & confusing 529 plan details, so I just read the short & easy-to-understand Clark Howard's 529 Guide & chose "the nation's finest" Utah Educational Savings Plan Trust. I highly recommend both! Now, Sophia will go to college for sure, right?