I feel that this topic has been discussed already - please feel free to direct me to relevant threads!
I am still trying to figure out how much (if any) additional term life insurance I really need.
Most of the formulas I see take into account age, income, debt, and number of children but don't really seem to address net worth, savings rate, or existing retirement savings (which could all contribute to a person's ability to self-insure).
I am 46 years old, married with no children. I am the primary breadwinner. My goal is to FIRE in 5 years or so. My current debt is around $130K (mainly low interest mortgage and student loans) which will be paid off during that time period. My net worth is around $1.45M which includes the value of primary residence of $250K with most of the rest in tax-advantaged retirement accounts. My current salary (gross) is $212,000 - but almost 1/2 of that goes to loan paydown, retirement savings, taxes and insurance that are not expenses that would carry forward after my death/retirement. I currently have 1X salary group policy through work and purchased a supplemental $200K policy under the group rate in addition. This is more than enough to pay off existing debt and leaves hubby with a paid off $250K house and a $1.5M-ish nest egg. This is over 25x the median net compensation in the US!
I have already funded our nieces and nephews 529 plans for college. We have LTCI policies in place in case of needing expensive care due to accident or illness (I am looking at when it makes sense to self-insure for this as well). Our parents all FIRE'd years ago and will not need assistance from us (in all likelihood they will leave us with some comfortable inheritances despite our encouragement to spend it on themselves!)
So, really, I am just trying to see where additional term life insurance would fit into this equation...
Doc
I am still trying to figure out how much (if any) additional term life insurance I really need.
Most of the formulas I see take into account age, income, debt, and number of children but don't really seem to address net worth, savings rate, or existing retirement savings (which could all contribute to a person's ability to self-insure).
I am 46 years old, married with no children. I am the primary breadwinner. My goal is to FIRE in 5 years or so. My current debt is around $130K (mainly low interest mortgage and student loans) which will be paid off during that time period. My net worth is around $1.45M which includes the value of primary residence of $250K with most of the rest in tax-advantaged retirement accounts. My current salary (gross) is $212,000 - but almost 1/2 of that goes to loan paydown, retirement savings, taxes and insurance that are not expenses that would carry forward after my death/retirement. I currently have 1X salary group policy through work and purchased a supplemental $200K policy under the group rate in addition. This is more than enough to pay off existing debt and leaves hubby with a paid off $250K house and a $1.5M-ish nest egg. This is over 25x the median net compensation in the US!
I have already funded our nieces and nephews 529 plans for college. We have LTCI policies in place in case of needing expensive care due to accident or illness (I am looking at when it makes sense to self-insure for this as well). Our parents all FIRE'd years ago and will not need assistance from us (in all likelihood they will leave us with some comfortable inheritances despite our encouragement to spend it on themselves!)
So, really, I am just trying to see where additional term life insurance would fit into this equation...
Doc