- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Wife pregnant for first time...
Posted on 5/27/14 at 4:20 pm to EveryonesACoach
Posted on 5/27/14 at 4:20 pm to EveryonesACoach
quote:
Do we need to up our coverage?
Yes, if you were me, especially if it only has 7 years left.
quote:
Should I assume that if I died my income would need to be replaced until our child is grown up?
To each their own here. There are a lot of generic calculations that can get you in the ball park of what you need, most say 10x salary, but that is just an easy way to avoid actual work.
Here is simple calculation. The concept is if I passed away tomorrow, what do I want taken care of: I want $30k to pay for funeral expense, replenish emergency fund, and give wife some money for some immediate unforeseen expenses.
Then, I want all my debt wiped away (car, house, credit cards, student loans if any, etc...). I also want money earmarked for kids education (I want to have 2 kids, so I am earmarking $150K for college education).
The final step is income replacement. When I pass away, I want my wife to have income coming in (besides what she earns) for 20 years, so I get that number, factoring in inflation and whatnot.
That is a pretty basic calculation you would go through if you meet with a financial adviser.
With all that said, to each his own on death benefit number. If I went by the 10x salary number, I'd be under insured. However, I know plenty that just want debt wiped out, and have no desire to provide income. So the 10x number would be too much.
This post was edited on 5/27/14 at 4:23 pm
Posted on 5/27/14 at 4:25 pm to GoCrazyAuburn
quote:
The final step is income replacement. When I pass away, I want my wife to have income coming in (besides what she earns) for 20 years, so I get that number, factoring in inflation and whatnot.
With all that said, to each his own on death benefit number. If I went by the 10x salary number, I'd be under insured. However, I know plenty that just want debt wiped out, and have no desire to provide income. So the 10x number would be too much.
You must be in the biz because that's the steps my financial advisor walked me through whenever I signed up for mine.
My wife and I are in a very similar situation as the OP. I have over a little over 10x my annual salary in order to pay for all expenses, cover our combined debt (a car note & mortgage) and provide her with supplemental income so that she would not have to change our lifestyle (sell the house, downgrade quality of life) if I passed.
Posted on 5/27/14 at 4:27 pm to GoCrazyAuburn
That is a lot to factor in, thanks for the insight.
Posted on 5/28/14 at 2:05 am to GoCrazyAuburn
quote:
The final step is income replacement. When I pass away, I want my wife to have income coming in (besides what she earns) for 20 years, so I get that number, factoring in inflation and whatnot.
Thats nice of you to make sure she has a 3rd income after she remarries.
Popular
Back to top
Follow TigerDroppings for LSU Football News