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View Poll Results: Those of you still working/not FIRE, how much life insurance are you carrying?
2x annual income or less 46 47.92%
3x to 5x AI 26 27.08%
6x to 8x AI 15 15.63%
9x to 11x AI 5 5.21%
12x or more 4 4.17%
Voters: 96. You may not vote on this poll

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Re: How much life insurance do you carry?
Old 06-05-2006, 10:44 PM   #21
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Re: How much life insurance do you carry?

I said 3x-5x, but I forgot the life insurance that is automatically attached to the mortgage, which would make it 6x-8x.

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Re: How much life insurance do you carry?
Old 06-05-2006, 11:13 PM   #22
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Re: How much life insurance do you carry?

Hmm, it's interesting to see all the low votes, are there a lot of retired/FI types voting? Obviously, once I have a significant net worth, we won't have the need to continue the large coverage. I would think those who are just starting out (young dreamers) would want to cover themselves, especially if they have kids. I'm all over LBYM, but for my age (31) ten year term policies are really, really cheap. By 41 (hopefully) I won't need any more than what gives me automatically (3x).
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Re: How much life insurance do you carry?
Old 06-05-2006, 11:26 PM   #23
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Re: How much life insurance do you carry?

I self-insure, but I don't remember term life being very expensive.

You know that you'd need a nest egg = 25x expenses to ER, so why wouldn't you use that same formula for life insurance?

insurance = 25 x expenses - current nest egg.
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Re: How much life insurance do you carry?
Old 06-06-2006, 05:18 AM   #24
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Re: How much life insurance do you carry?

Quote:
Originally Posted by Laurence
Hmm, it's interesting to see all the low votes, are there a lot of retired/FI types voting? Obviously, once I have a significant net worth, we won't have the need to continue the large coverage. I would think those who are just starting out (young dreamers) would want to cover themselves, especially if they have kids. I'm all over LBYM, but for my age (31) ten year term policies are really, really cheap. By 41 (hopefully) I won't need any more than what gives me automatically (3x).
Laurence, I'm only 29 so I carry a $2M term policy. I was amazed at how cheap 30 year term was when I took my policy out.

If I go, I want my wife to have as much money as possible, I don't care if she feels like she hit the lottery (she wouldn't anyway) If worked with plenty of widows, going back to work when their husbands die is the last thing on their mind. I certainly wouldn't want my wife forced into that.

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Re: How much life insurance do you carry?
Old 06-06-2006, 06:55 AM   #25
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Re: How much life insurance do you carry?

Quote:
Originally Posted by saluki9

Laurence, I'm only 29 so I carry a $2M term policy.* I was amazed at how cheap 30 year term was when I took my policy out.*

If I go, I want my wife to have as much money as possible, I don't care if she feels like she hit the lottery (she wouldn't anyway)* If worked with plenty of widows, going back to work when* their husbands die is the last thing on their mind. I certainly wouldn't want my wife forced into that.

I don't carry as much coverage as saluki, but taht's about how I feel about it. Add in kids and I care even less about the whole "lottery" issue.
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Re: How much life insurance do you carry?
Old 06-06-2006, 09:15 AM   #26
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Re: How much life insurance do you carry?

It certainly makes sense to me for young breadwinners to have insurance as you do Laurence.

I don't have any personally, but our firm has policies on each of the principals, with payout adequate to buy back the deceased's share of ownership.

Life insurance can be useful in some non-traditional situations.

My dad has a life insurance trust (ILIT) which my brother and I will inherit. It made sense for some complicated estate planning reasons, as others have alluded to.
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Re: How much life insurance do you carry?
Old 06-06-2006, 11:27 AM   #27
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Re: How much life insurance do you carry?

My husband has 2x salary through his teaching job to help me with health insurance to age 65. I have no life insurance. We've never had LI outside of work (except several hundred thou in term coverage when DH was contracting), just signed up for decreasing multiples of salary as the kids got older.
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Re: How much life insurance do you carry?
Old 06-06-2006, 05:20 PM   #28
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Re: How much life insurance do you carry?

None. I have a brokerage account with a brazillion dollars in it. Life insurance would be overkill.
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Re: How much life insurance do you carry?
Old 06-07-2006, 05:23 AM   #29
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Re: How much life insurance do you carry?

Quote:
Originally Posted by Cute Fuzzy Bunny
None. I have a brokerage account with a brazillion dollars in it. Life insurance would be overkill.

I always though Brazillion dollars were worth less than ours

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Re: How much life insurance do you carry?
Old 06-07-2006, 08:35 AM   #30
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Re: How much life insurance do you carry?

Me 41/DW 39 (3 kids -- 2, 4, and 7)

20 Year Term --- $400K (17 Years remaining)
Company Term --- $120K
Accid Death & Disability (thru work) --- $480K

DW -- 20 Year Term --- $300K (20 Years Remaining)

$200k Mortgage...no other debt

Don't want to replace my income in the event I pass on. Just want DW to not have to work and be comfortable, at least for many years. I'm sure she'd eventually go back to work.

Other monthly Gov't survivor benefits she'll have access to:

Military Pension COLA'd $1500 till all kids out of school
SS $3100 until kids out of school.

I believe she'll be OK...
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Re: How much life insurance do you carry?
Old 06-07-2006, 09:32 AM   #31
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Re: How much life insurance do you carry?

Quote:
Originally Posted by saluki9
Quote:
Originally Posted by Cute Fuzzy Bunny
None. I have a brokerage account with a brazillion dollars in it. Life insurance would be overkill.

I always though Brazillion dollars were worth less than ours

Yeah but man, do all those commas on the statements look terrific!
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Re: How much life insurance do you carry?
Old 06-09-2006, 08:27 PM   #32
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Re: How much life insurance do you carry?

We each have .5MM with a NW of about 1MM. The Co provides 2x Sal => .2MM plus accidental. So I would count that as 7x for now. All term for ~ 200 for me and 200 for DW per year.

We will likely discontinue mine in a couple of years due to not needing the protection, hers will continue due to help her mom if event happens!!

Either way the proceeds go in trust for survivor (if either) and kids.

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Re: How much life insurance do you carry?
Old 06-10-2006, 11:47 AM   #33
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Re: How much life insurance do you carry?

None. DW gets the IRA and the higher SS. She's set for life. The kids are grown. So, none.
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Re: How much life insurance do you carry?
Old 06-21-2006, 10:27 PM   #34
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Re: How much life insurance do you carry?

Quote:
Originally Posted by Laurence
Hmm, it's interesting to see all the low votes, are there a lot of retired/FI types voting?* Obviously, once I have a significant net worth, we won't have the need to continue the large coverage. I would think those who are just starting out (young dreamers) would want to cover themselves, especially if they have kids.* I'm all over LBYM, but for my age (31) ten year term policies are really, really cheap.* By 41 (hopefully) I won't need any more than what gives me automatically (3x).
I agree, insurance is pretty cheap and well worth the peace of mind.

We just upped our life insurance last night, mostly due to expecting our first child soon.* Spouse's coverage went from $500K to $700K and mine from $10K to $400K.* Because I'll be doing the stay at home mom thing for a while, the high coverage for me may seem like overkill, but we have some unique circumstances.* The husband is almost 100% convinced that in the event of my death he would leave active duty and switch to a less demanding career.* The money would help make up for the loss of his pension, allow him more options and time in finding a new career,* and also take care of any child care expenses in the meantime.* Just something to think about - I never thought about coverage for a stay-at-home spouse until my husband brought it up last night.

Like you we'll probably reduce coverage as we get older and as net worth increases.
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Re: How much life insurance do you carry?
Old 06-22-2006, 10:35 AM   #35
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Re: How much life insurance do you carry?

Quote:
Originally Posted by FlowGirl
Just something to think about - I never thought about coverage for a stay-at-home spouse until my husband brought it up last night.
Well, you're both embarking on tours of duty in combat zones, but at least he gets to shoot back once in a while...

I think childcare providers are grossly underpaid for the unrelenting environment they put up with. And when you're the sole provider for your own kid it's even harder-- a lifetime sentence without parole!
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Re: How much life insurance do you carry?
Old 06-23-2006, 12:14 PM   #36
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Re: How much life insurance do you carry?

I have 2x personally, 3x through work, and SS would make up another 2x or so (assuming most of my family survives me, and if not, well, then I don't care). Since I save a lot, and pay a lot of taxes, this adds up to about 25x spending. I have a stay-at-home spouse and five small children, so I need quite a bit more than most.
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Re: How much life insurance do you carry?
Old 06-23-2006, 01:57 PM   #37
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Re: How much life insurance do you carry?

We each have 4X AI.

Late wife had 4X AI while she was working but was uninsurable after she retired and her insurance stopped when she retired. She died shortly after retirement so there was nothing to collect.

Don't underestimate the value of good health while you are still able to get insurance. If you get diagnosed with cancer don't expect to get even term insurance you can afford.

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Re: How much life insurance do you carry?
Old 06-23-2006, 08:52 PM   #38
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Re: How much life insurance do you carry?

I have a 1 million dollar policy and the wife has 1/2 a million - both with a level premium for another 8 years. Once we reach FIRE we will cancel both of these.
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Re: How much life insurance do you carry?
Old 06-30-2006, 12:28 AM   #39
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Re: How much life insurance do you carry?

We have 1M on each of us (10 year level term 8 years left on it.) But we also have two young children and if one of us dies the survivor would still want to FIRE. We will cancel when we stop working in 4-5 years
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Re: How much life insurance do you carry?
Old 06-30-2006, 12:49 PM   #40
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Re: How much life insurance do you carry?

I never understood carrying enough to replace yourself if you die.* I have a beautiful wife (with a MSW degree) with one child.* If i die, she needs enough to deal with the temporary setback and enough to make life adjustments to replace me.* My salary doesnt have to be replaced permanently, or worse, her never need any more monetary sources again!* *

It is legal in the US to remarry, and she can also get a job if she just doesnt want to (remarry).* *IMO, one of the spouses dying, even the one that works, isnt a license for the other to sit on their ass for the rest of their live.* *Life is always handing "you and I" changes and part of living life is adjusting to those inevitable changes.

So i dont get the permanently replacing your income.* *IMO, the life insurance companies are getting the ones of you doing that fully hook, line, and sinker.

We each carry small 100K dollar term policies, and my fed government would also pay 1.5x my salary in lump sum too. More than enough to buy her time to adjust to me being gone.

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