Term Life Insurance

amother

Aqua

Thu, Dec 24 2015, 9:57 am

What is minimum amount needed? Do you calculate per child? For how many years?

DH has a whole life policy of 400K and we'd like to add a term policy for him and one for me.
I would love to have a million for each of us for 30 years. We are 30 years old with 4 kids k"ah.

Dh feels that half a million is enough for him since he already has another policy.

Broker said 20 year policy is better (has disability benefits) and if we want, in 10 years we could drop this policy and make a new 20 year policy. Which might come out cheaper but he doesn't know what the rates will be then.

WWYD?

Amarante

Thu, Dec 24 2015, 10:13 am

Why are you going with term instead of whole life. I have read whole life is what you need and there are much better investments than term life since whole life is less expensive.

I think the rule of thumb depends on your salary and expenses as life insurance is theoretically supposed to replace the salary for a certain period of years. And if there is a stay at home care giver, the costs of duplicating care given that person.

Disability insurance is very critical for a wage earner.

amother

Peach

Thu, Dec 24 2015, 10:14 am

I am working. My husband is learning. We have two kids. We each have half million dollar 20 yr term policies.

amother

Aqua

Thu, Dec 24 2015, 10:16 am

Amarante wrote:

We already have whole life on DH and we can't afford a larger policy and/or whole life also for me although IMO that's the way to go.

amother

Royalblue

Thu, Dec 24 2015, 12:14 pm

I was not aware of the disability coverage with the 20 year plan. Do all companies offer that or only some?

Otherwise I think a 30 year plan is better because although the 20 yr is cheaper, not guaranteed afterwards to renew (or at least for decent rate) and/or qualified to get a new policy anymore. With a 30 year plan you are covered hopefully until all kids are married iyh or at least all adults.

MagentaYenta

Thu, Dec 24 2015, 1:16 pm

amother wrote:

Perhaps the plan waives premiums if one becomes disabled? I have that clause on both my whole life and term life.

amother

Aqua

Thu, Dec 24 2015, 1:22 pm

MagentaYenta wrote:

Perhaps the plan waives premiums if one becomes disabled? I have that clause on both my whole life and term life.

Yes, that's what I meant plus it has the option of converting it to a whole life with premiums going towards whole life premium payment so in case of illness where one wouldn't qualify for another policy, you have the option to continue coverage.