I'm in my early 30s with a baby on the way, and want to purchase term life insurance to provide for my spouse/child if I pass away. This is my first time purchasing life insurance, so I greatly appreciate any feedback on the amount of coverage, how to structure the policies, and any other advice on how to purchase coverage.
High level financial picture: ~$600k his/~$300K her income, which will likely double in next 5 years. ~$1.2m invested. Annual living expenses of ~$300k including housing and ~$200K excluding housing.
I'm considering ~$10m of coverage which would allow for a $3m home purchase in HCOL area and $250k/yr of income at a 3.5% withdrawal rate. Employer provides $2m of coverage, so I'm looking to buy an incremental $8m. I'm considering the following policy ladder to have flexibility to drop policies as savings increase (rough prices based on term4sale.com).
10-year $2m ~$400/yr
15-year $2m ~$500/yr
20-year $4m ~$1,300/yr
Would be great to get your advice on:
High level financial picture: ~$600k his/~$300K her income, which will likely double in next 5 years. ~$1.2m invested. Annual living expenses of ~$300k including housing and ~$200K excluding housing.
I'm considering ~$10m of coverage which would allow for a $3m home purchase in HCOL area and $250k/yr of income at a 3.5% withdrawal rate. Employer provides $2m of coverage, so I'm looking to buy an incremental $8m. I'm considering the following policy ladder to have flexibility to drop policies as savings increase (rough prices based on term4sale.com).
10-year $2m ~$400/yr
15-year $2m ~$500/yr
20-year $4m ~$1,300/yr
Would be great to get your advice on:
- How much coverage I should purchase?
- How to structure the policy ladder?
- How to find a good insurance agent? I plan on comparing term4sale against a local agent.
- Does it matter which insurance company I purchase from? My understanding is that there haven't been any major term life bankruptcies?
Statistics: Posted by ExuberantlyRational — Sun Jun 09, 2024 3:02 pm — Replies 5 — Views 286