7 ways you're being foolish with insurance
Foolishness for couples is purchasing life insurance only for a working spouse, ignoring the value of the stay-at-home parent, Kevin Finneran, vice president of life product management at MetLife in Bloomfield, Conn., says.
"When considering life insurance, if a stay-at-home parent is caring for children, how will the cost of caring for the children be provided for if something happens to that spouse?" he says.
Term life insurance policies are relatively inexpensive, particularly for a young, healthy parent.
"A big mistake people make is to spend their insurance budget on a small amount of (permanent) whole life insurance instead of term life insurance," says Tom Bigoski, owner of the Thomas Bigoski Insurance Agency in Gainesville, Va. "A healthy 35-year-old male can buy a 30-year, locked-in term life insurance policy for $500,000 for the same cost as just $100,000 in whole life insurance."