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Started By
Message
How much term life insurance should you carry? If at all?
Posted on 3/4/17 at 3:11 pm
Posted on 3/4/17 at 3:11 pm
Looking into life insurance. Seems like term is the way to go? I'm 29 now.
Was thinking of doing a $1mil vs 2mil 30 year policy which looks like it'll run ~$60/month vs ~110/month
Anything I should consider beforehand? Does it really matter what company you go with, or just look for the cheapest option?
Was thinking of doing a $1mil vs 2mil 30 year policy which looks like it'll run ~$60/month vs ~110/month
Anything I should consider beforehand? Does it really matter what company you go with, or just look for the cheapest option?
13
Posted on 3/4/17 at 3:15 pm to Puffoluffagus
$2m you drop $40k and potentially leave your wife $2m. Hopefully you make,save,invest more in that timeframe and stay alive
Posted on 3/4/17 at 6:51 pm to Puffoluffagus
Ramsey dude says 10x's your annual salary. I carry that. If wife can't make it on that then she's outta luck.
Posted on 3/4/17 at 6:52 pm to Puffoluffagus
Wife?
Kids?
Debt?
Salary?
All things to consider
Kids?
Debt?
Salary?
All things to consider
Posted on 3/4/17 at 7:08 pm to Puffoluffagus
I have 3 times my annual salary on me. The amount equal to my wife's outstanding loans for her.
Starting to think that I'm under insured, but we don't have kids yet.
Starting to think that I'm under insured, but we don't have kids yet.
This post was edited on 3/4/17 at 7:14 pm
Posted on 3/4/17 at 7:54 pm to Puffoluffagus
I just got 1m 30 yr
Posted on 3/4/17 at 9:41 pm to yellowfin
quote:
Wife?
Kids?
Debt?
Salary?
All things to consider
Yes
Future/soon
Yes (~250k)
Currently ~$55k, will be 300 plus in a few years.
Posted on 3/4/17 at 9:58 pm to Puffoluffagus
So I'm assuming your in medical school?
Posted on 3/4/17 at 10:04 pm to boatless2
A resident if he's currently making $55K.
Posted on 3/5/17 at 6:00 am to Puffoluffagus
One million is plenty, probably overkill until you have kids
Posted on 3/5/17 at 6:32 am to Puffoluffagus
quote:
How much term life insurance should you carry?
Enough to pay your estate's debt, provide for your kids' education, and give your wife a few years worth of income to find a new dude.
This post was edited on 3/5/17 at 6:33 am
Posted on 3/5/17 at 6:57 am to GaryMyMan
quote:
Enough to pay your estate's debt, provide for your kids' education, and give your wife a few years worth of income to find a new dude.
It's really this simple.
Posted on 3/5/17 at 8:41 am to Puffoluffagus
I have 2.5 times my annual salary through work. Is this standard? My last 3 places of employment have offered something similar to this at no cost to me.
Posted on 3/5/17 at 9:03 am to Puffoluffagus
Rich now I'm single with just siblings to consider, so I take what work provides for free which I think is 3x salary.
Dave's suggestion is 10x if you have wife and kids so they basically can afford funeral expenses, and live debt free for years (pay off house, cars, loans, etc.)
Dave's suggestion is 10x if you have wife and kids so they basically can afford funeral expenses, and live debt free for years (pay off house, cars, loans, etc.)
Posted on 3/5/17 at 4:41 pm to Puffoluffagus
Always always always buy term insurance.
Life insurance is not an investment anymore. It's a catastrophic failure insurance.
I have 10x my annual salary in term life but it expires 8 years from now.
Why?
My home will be paid off, I will have no debt, my kids will be out of college, and there is no reason for insurance past that point.
My wife is a retired physician and still in her 40's. If I am dead and our kids are grown....she can get a good job.
If she was a retired school bus driver, I might feel differently but I doubt it.
My job is not to provide an immeasurable amount of $$$$ to my family while they are all healthy adults.
If that was the case, I would expect my wife to provide me "free marital relations" and "sammich making" insurance to be handed out for years after her death.
If she dies, like in most cases, the man gets zip.
Life insurance is not an investment anymore. It's a catastrophic failure insurance.
I have 10x my annual salary in term life but it expires 8 years from now.
Why?
My home will be paid off, I will have no debt, my kids will be out of college, and there is no reason for insurance past that point.
My wife is a retired physician and still in her 40's. If I am dead and our kids are grown....she can get a good job.
If she was a retired school bus driver, I might feel differently but I doubt it.
My job is not to provide an immeasurable amount of $$$$ to my family while they are all healthy adults.
If that was the case, I would expect my wife to provide me "free marital relations" and "sammich making" insurance to be handed out for years after her death.
If she dies, like in most cases, the man gets zip.
Posted on 3/5/17 at 7:05 pm to SECdragonmaster
You bring up an excellent point about asymmetry in life insurance, and also regarding the potential future wages of the surviving spouse. I can completely understand carrying 10x salary or more if you have minor children, or a child or spouse incapable of supporting him/herself. But I don't understand the idea of buying huge policies so that a well-educated surviving spouse can enjoy a work-free existence should you pass away first.
I know of a distant relation whose husband died of lung cancer...not exactly a surprise, as he was a lifelong smoker. He very thoughtfully bought a huge policy from his employer & made his wife & (now adult) son equal beneficiaries. He had a long, unpleasant struggle w/cancer & died at home. Fast forward a few years, and his wife & son are mired in a directionless existence, stuck in grief. Neither one has to work anymore, thanks to the fat insurance payoff. But I keep thinking that at least work would get them out of the house on a daily basis, interacting with other people. Instead, they've formed a self-referential closed loop of grief. It's a terrible thing to see--and certainly they prob had some mental health issues before this--but getting up & going to work might have a profound positive effect on these two.
I know of a distant relation whose husband died of lung cancer...not exactly a surprise, as he was a lifelong smoker. He very thoughtfully bought a huge policy from his employer & made his wife & (now adult) son equal beneficiaries. He had a long, unpleasant struggle w/cancer & died at home. Fast forward a few years, and his wife & son are mired in a directionless existence, stuck in grief. Neither one has to work anymore, thanks to the fat insurance payoff. But I keep thinking that at least work would get them out of the house on a daily basis, interacting with other people. Instead, they've formed a self-referential closed loop of grief. It's a terrible thing to see--and certainly they prob had some mental health issues before this--but getting up & going to work might have a profound positive effect on these two.
Posted on 3/6/17 at 8:13 am to Puffoluffagus
quote:This was the question I was hoping to have answered.
Does it really matter what company you go with, or just look for the cheapest option?
Posted on 3/6/17 at 8:17 am to hungryone
quote:
Fast forward a few years, and his wife & son are mired in a directionless existence, stuck in grief. Neither one has to work anymore, thanks to the fat insurance payoff. But I keep thinking that at least work would get them out of the house on a daily basis, interacting with other people. Instead, they've formed a self-referential closed loop of grief. It's a terrible thing to see--and certainly they prob had some mental health issues before this--but getting up & going to work might have a profound positive effect on these two.
I mean this is like blaming the lottery. People who are shite heads are going to be shite heads.
I do agree that insurance isn't to setup wife/kids to never work.
Posted on 3/6/17 at 8:27 am to readysetgeaux
The company doesn't matter too much, you just don't want to go with a dirt cheap fly by night option. Someone like Northwestern Mutual will be 20-30% higher many times you are paying for the reduced risk.
If you are a resident, you don't 'need' 30 year policy. In 15 years you should have enough in savings that your wife and kids will survive without you. But while you are young, it also wouldn't be a bad idea to buy a 30 year policy for 2-3 mil as a somewhat estate planning tool.
As said 10x your salary is what is recommended in term. What you want to consider is if you want your wife to live the same life now or have to take some minor adjustments if you pass.
Don't forget that without one spouse, your expenses are going to increase. If you die for example, any labor you supply will need to be paid for now. Landscaping, home repair, auto repair, day care will increase, etc.
I'm not one to over insure, but I think a solid 10x earnings for 15 years with a mid-line insurance company is being a good spouse.
If you are a resident, you don't 'need' 30 year policy. In 15 years you should have enough in savings that your wife and kids will survive without you. But while you are young, it also wouldn't be a bad idea to buy a 30 year policy for 2-3 mil as a somewhat estate planning tool.
As said 10x your salary is what is recommended in term. What you want to consider is if you want your wife to live the same life now or have to take some minor adjustments if you pass.
Don't forget that without one spouse, your expenses are going to increase. If you die for example, any labor you supply will need to be paid for now. Landscaping, home repair, auto repair, day care will increase, etc.
I'm not one to over insure, but I think a solid 10x earnings for 15 years with a mid-line insurance company is being a good spouse.
Posted on 3/6/17 at 9:13 am to Puffoluffagus
Just be careful to not buy so much life insurance that you're worth more dead than you are alive. Especially if you have a wife who enjoys spending money.
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