How much life insurance do you carry?

[Sheryl]

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.

 

[astromeria]

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.

 

[cute fuzzy bunny]

None. I have a brokerage account with a brazillion dollars in it. Life insurance would be overkill.

 

[saluki9]

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

 

[Barnstormer]

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...

 

[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!

 

[obryanjf]

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.

job

 

[Eagle43]

None. DW gets the IRA and the higher SS. She's set for life. The kids are grown. So, none.

 

[FlowGirl]

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.

 

[Nords]

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!

 

[bongo2]

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.

 

[SteveR]

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.

 

[Alex]

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.

 

[5yearstogo]

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

 

[azanon]

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.

Azanon 

 

[brewer12345]

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.

Azanon 

Ah, yes, the ever popular "pimp my wife" strategy...

 

[SteveR]

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.

Azanon 

You might be very suprised what does and does not happen after someone is widowed. There are far more un-re-married widows out there than there are remarried ones. I have many widowed friends and getting remarried is not a priority with many of them. Each person has their own wants and needs after the death of a spouse. "Adjusting to [you] being gone.." is not as simple as you may believe. It is not a matter of getting used to being alone it is a myrid of hundreds of things that happen during widowhood that take some people a very long time (if ever) to resolve and find the courage and desire to love and be loved in a marriage-relationship again.

I am not trying to bust your chops here. I am just trying to relate to you and to anybody else who thinks that their widowed spouse will even want to remarry. Replacing a spouses salary can be a major issue for some widows since their lifestyle is dependent upon the combined wages of both partners. I have seen far too many widows forced to sell the house and many of their belonging and move to a much less expensive area because they cannot meet the monthly bills with the loss in income. For these people, Life Insurance would have prevented major changes to their life and the sale of their home and the need to move away from family and friends at a time when they needed them the most.

Your wife may indeed be able to continue to work and may be able to fully provide for herself and your child for as long as necessary without your paycheck. Just don't count on her finding a new wage earning partner for a very long time (if ever). Finding a decent guy who would want to raise your kid, earn a good living, love your wife above all others, and who is not already married or is not a nut case, is a tall order.

Just my two cents (based on some very personal experiences).

 

[laurence]

For $20 a month you could carry several hundred thousand dollars in life insurance, this will make no impact on your lifestyle and will provide a tremendous amount of security for your spouse and child if you should die. There is no rational reason to forgo such a minor expense, it sounds more like "I'm dead, screw you!". Love is supposed to be about giving without thought of what you get back, what's in it for you. Of course, I remember you don't believe love exists so I guess this fits.

If you die early in your retirement, will you have your will made up to ensure most of the money is donated to charity, leaving just enough to give your wife time to find a job and get off her lazy butt? After all, we don't want her sitting on aforementioned butt for the rest of her life, and you are the one who made the dough, right? I'm sure you'll say that's different. :

 

[Nords]

I am not trying to bust your chops here.  I am just trying to relate to you and to anybody else who thinks that their widowed spouse will even want to remarry. 

Steve, I'm going to have to study this "tact" concept some more. I thought you were saying "Unlike you, I actually have the credibility to know what the hell I'm talking about!"

 

[Daneboy]

Use to just have what was provided by work plus supplemental that was offer - was about 3-4 times salary.

When I retired I went to my American Family agent that I use for car home & umbrella and asked him about life - and he looked at my assets and age said I didn't need any. Asked him about health & dental he said I could get a better deal elsewhere.....I didn't know agents could actually say no to writing insurance!

 

[Sarah in SC]

Ah, yes, the ever popular "pimp my wife" strategy...

tactful, no, hilarious, yes. 

 

[cute fuzzy bunny]

Steve, I'm going to have to study this "tact" concept some more. I thought you were saying "Unlike you, I actually have the credibility to know what the hell I'm talking about!"

 

[azanon]

.........

 

[Gumby]

..

 

[skittles]

We have very little, less than 1x

We have a growing estate (5x) and no debt, and no dependants, so we really don't need the insurance anymore.

I guess we'll drop the policies someday.