Going For Life
Doris wants to insure her and her husband against the worst, because it could very well happen.
QUESTION: Doris and her husband have life insurance through his work. She was diagnosed with cancer 2 years ago and he wants to retire in 5 years, which would make them lose their life insurance. What can she do in terms of insuring herself?
ANSWER: You buy life insurance to replace someone’s income. Not to sound cold, but if you pass away, he’ll be financially fine. What I would do is continue to build your nest egg so that you are self-insured at that point. You can also buy mortgage insurance to pay off the home; that wouldn’t hurt. But build the nest egg it as fast as you can, so he doesn’t depend on your life insurance by the time you don’t have any.