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life insurance question..what is the rule of thumb these days?
Posted on 5/2/13 at 2:49 pm
Posted on 5/2/13 at 2:49 pm
everyone still go for a straight $1mil policy or 10x your annual income if you're the primary breadwinner?
$1mil isn't what it used to be but if your SO is worth a damn I would think even with kids they could get by on that.
what does the OT say oh ye mighty braintrust.
$1mil isn't what it used to be but if your SO is worth a damn I would think even with kids they could get by on that.
what does the OT say oh ye mighty braintrust.
7
Posted on 5/2/13 at 3:10 pm to CAD703X
I think there are a lot of variables. I say definitely cover any debts you would leave your spouse/family. Does your wife work? If not, then I would take out enough to allow her to invest it after debts are paid off. My wife is a Dr., so I think she'll be ok if I die. I have enough Life Ins. right now to cover her Med School debt and our mortgage. We don't have any kids yet either. I suppose that's another factor when calculating X years of schooling/life expenses left.
Posted on 5/2/13 at 3:13 pm to TheWiz
Enough to keep your family going if you were not there. Besides that, see TheWiz's post.
Posted on 5/2/13 at 4:16 pm to AnonymousTiger
thanks guys
Posted on 5/2/13 at 4:21 pm to CAD703X
Enough to keep your family out of the poor house but not so much that you will become a target
Posted on 5/2/13 at 4:24 pm to CAD703X
I follow thee LIFE method:
L - Loans: How much debt to you have, i.e. mortgage, car, credit card, student loans
I - Income: What would it take to replace your future earning potential?
F - Funeral: Funeral expenses
E - Education: Amount needed to cover your kids though HS and college.
L - Loans: How much debt to you have, i.e. mortgage, car, credit card, student loans
I - Income: What would it take to replace your future earning potential?
F - Funeral: Funeral expenses
E - Education: Amount needed to cover your kids though HS and college.
Posted on 5/2/13 at 4:26 pm to CAD703X
I've got a 250k policy on her, and a 1M policy on me. If I go, the house and any other debts are easily paid off, and she'd have around 750k left to live off of. With no mortgage, that should last a really long time just paying the bills. Of course some would be earmarked for college for the kids. If she goes, the house gets paid off and I'd have very low bills each month without that there.
Posted on 5/2/13 at 4:48 pm to TU Rob
Get a will and name your estate or a trust as the beneficiary. That might make it easier to dictate how the money is used after you are gone.
Posted on 5/2/13 at 4:57 pm to AnonymousTiger
Buy term and invest the difference.
Posted on 5/2/13 at 4:58 pm to CAD703X
About half of whatever the insurance salesman recommends.
Posted on 5/2/13 at 5:01 pm to CAD703X
Posted on 5/2/13 at 5:04 pm to WDE24
Met with an insurance agent that recently tried to convince me that 23x's income was the amount really needed if one of us died. Needless to say didn't buy anything from this guy.
Posted on 5/2/13 at 5:04 pm to Hacker
quote:
L - Loans: How much debt to you have, i.e. mortgage, car, credit card, student loans
I - Income: What would it take to replace your future earning potential?
F - Funeral: Funeral expenses
E - Education: Amount needed to cover your kids though HS and college.
That's a lot of cheese.
Posted on 5/2/13 at 5:06 pm to CAD703X
I follow my father's advice-
"I'm under-insured, because I want everyone to be sad when I die."
"I'm under-insured, because I want everyone to be sad when I die."
Posted on 5/2/13 at 5:06 pm to Jimbeaux
quote:I'm guessing he sells. That is a lot. Some people want that and will pay for it, but for me that much is overkill. I think Debt and Funeral need to be fully covered in almost every situation. Beyond that it is a personal choice for what makes the most sense in your situation.
That's a lot of cheese.
This post was edited on 5/2/13 at 5:09 pm
Posted on 5/2/13 at 5:07 pm to MamouTiger65
"rule of thumb" is higher now given the current interest rates but 23x is a bit crazy. Was he replacing 100% income forever?
Posted on 5/2/13 at 5:14 pm to wasteland
quote:
"rule of thumb" is higher now given the current interest rates but 23x is a bit crazy. Was he replacing 100% income forever?
Yep, that was to supplement my income till her death which was his suggestion not mine.
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