do you have life insurance?
age: 36 premium: 1200 insured amount: 1.5M spouse age: 33 premium: 900 insured amount: 1.5M both have zero health issues, kid is 4. location: Seattle term: 30 years
I think employer coverage is generally enough if you’ve already built up assets.
My employer maxed out at 6x earnings when the general recommended amount is 10x.
We have life insurance with coverage similar to what you have in place. Our premium is around what you are paying for your spouse. The goal of life insurance is to leave your family in good financial shape in case something happens to either one of you. We got a 20 year term life insurance as this gives us sufficient runway to build our wealth to be “self-insured” We also have a will in place as a part of our overall financial plan.
I just pay for the one option my company provides. I would recommend watching Dave Ramsey's advice on this.
Yes keep it, things can turn around in a snap!
Keep it! Also, you need coverage away from your employer. Once you leave your job and try to take it with you, you will pay an astronomical amount to keep it (much more than if you got it on your own). I am a Dave Ramsey follower as well, but I feel that his view isn’t quiet the reality that most are living when it comes to finances and taking care of our families.
can someone eli5 why having/making a will matters?
It only matters if you have life insurance and/or assets that you want to pass on to dependents. If you don’t have those things, then it is not important. The will makes sure the court does not get to decide how to divvy out your stuff. Honestly a trust is better than just a will. If you have kids you should talk to a lawyer about it. It’s not very expensive.
Yes, is that 20 year term? I assume you both work? If not with a young child, the one who does work should probably have more especially given how cheap it is for you.
Both work, 30 year term. Employer one wasnt as good afaik
I think that sounds cheap/good for such a long term. You might want to consider even more coverage with young child, unless you have lots of other assets
I am a huge fan of life insurance. I've seen too many families, young and old, on Facebook with GoFundMes because they can't afford the untimely death of a loved one. I pay about $2000 a year in premiums. I have about $750k in coverage, which will pay off my home and any leftover debts, put me in the ground, and help give my wife some time to adjust to a new life without me as a bread winner. My wife has $500k coverage for the same benefits for me. My premiums also include a disability policy that will pay me 80% of my salary if I'm unable to work. Combined with the coverage I have from work, I sleep very soundly knowing my family will be just fine financially regardless of what happens to me.
Also my terms are until I'm 80. So it'll insure me until I can't purchase term life anymore.
That is a lot for premium for $750 coverage
Did one for myself and wife just until the kids graduate high school. In 15yrs I should have way more than enough assets that the life insurance is just gravy $300/yr for $1m 15yr term for me $170/yr for $500k 15yr term for wife
Vendor?
Sourced it through policy genius and the vendor was Protective. Can't recommend PG enough, was a super smooth process (even the health screening/physical)
Yes, it's the responsible thing to do. Also make a will.
What’s the easiest way to make a will?
If there's a way there's a will