How Much Term Life Insurance Should You Buy?

How Much Term Life Insurance Should You Buy?

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[amandah]

At age 35 we bought a 20 year term life insurance policy for my husband. Looking back it was about 14x what he was making, but it seemed like the right number to us at the time. This summer he turned 40, time to re-assess our needs. But about 2 months before his 40th birthday he was diagnosed with brain cancer. Our life insurance is just over 10x his current salary, and we have 15 years left on it. We have no idea what the next few years will look like, but it does bring a degree of peace to have the life insurance in place. I think usually when you buy life insurance you think about the car accident or heart attack, something that takes you quickly. But it might be something like cancer that takes a few years. So having a few extra years on the policy is a good idea. You buy life insurance hoping to never have to use it but it is so essential when you do need it. And if you do need to use it you will wish you bought just a little more. I like their idea of layering policies on top of each other every few years.

[djpuplex]

It seems like lottery tickets for the wives.

[mikesurel]

Make sure you check your job benefits. Most jobs I have had make available 1-3 years of life insurance as a benefit, usually at a great rate. And definitely letting it fall off as the kids hit adulthood. It is nice when the number of obligations starts going down 😄

[Danny...]

I'm an insurance agent and I can tell you that you can't "always bolt it on". Not just because it's more expensive with age. People get diagnosed with diseases and don't qualify when they're older. People go from paying the lowest rate when they're younger to the highest rate because they get MS, cancer etc. Don't assume you can just bolt it on 10-20 yrs from now.

[working_to_hunt]

What insurance companies do you most recommend to your clients?