Life Insurance pre-filing

[berkeleygl]

So, my husband and I are looking at filing a chapter 13 in late February. I am working hard right now to best educate myself and do as much pre-filing prep as possible. We have stopped paying our credit cards this month, and realize that all of a sudden I can make a budget and stick to it. There is actually money now . Anyway, I was just wondering if it is recommended my husband and I take out life insurance policies before filing. We will easily be able to build it into our budget (we are looking at around $150/month total for us both to have decent coverage). Before I sign on the dotted line, I just want to make sure this is a good decision, that it won't be frowned upon by the trustee, that our rates for the insurance are locked in for the duration, etc etc. Any advice will be appreciated! Same question applies for renter's insurance....worth it? We have been woefully uninsured and it's high time we get our financial/personal life in order!

[debee]

I'm not a 13 person so I can't address any of that, but term life and renter's insurance both seem like pretty basic necessities to me. I can't imagine a successful objection to either. Hopefully now that your question has been bumped, someone with experience in the ways of ch13 will drop in with an answer.

[catleg]

You won't have any problem with term life, disability, auto, health, or homeowners/renters insurance. It's probably a good idea to ratchet them up to the highest settings (most coverage/least deductible) a few months before filing and include them that way in your budget.