My spouse and I are considering purchasing term life insurance for both of us and are trying to figure out answers to ‘how much’ and ‘how long’.
We are both around 35 years old and live in a super expensive part of the country. We have a 3 year old and hope to have another baby soon. We also have a mortgage with 1.1M left on it.
We ideally plan to be FI/retire in another 10-15 years.
For the term insurance policy, I am generally thinking that we should get a policy that covers the mortgage and also covers the bulk of the kids' undergraduate costs.
I am leaning towards 4 policies - 2 each for myself and spouse - a 20 year policy with coverage of 1.5M and a 30 year policy for coverage of 0.5M, for each of us. My reasoning is that within 20 years we should have enough saved up so a smaller policy from years 20 to 30 should be ok. We met with a fee based financial advisor and he recommended going with Prudential for lowest rates.
I’d love to get any feedback or thoughts about whether this seems ok or on how to think about the duration and amount of the policy. For instance, would a 30 yr policy for 2M for each of us make more sense, or is that overkill?
I am also not aware of how various providers stack up in terms of payouts, exclusions in the fine print, convenience etc — if something happens, the last thing that I’d want is for the insurance company to delay or avoid paying out the policy. So, I am trying to get a sense of whether Prudential is a good choice from this perspective — any advice or pointers here would be greatly appreciated.
We are both around 35 years old and live in a super expensive part of the country. We have a 3 year old and hope to have another baby soon. We also have a mortgage with 1.1M left on it.
We ideally plan to be FI/retire in another 10-15 years.
For the term insurance policy, I am generally thinking that we should get a policy that covers the mortgage and also covers the bulk of the kids' undergraduate costs.
I am leaning towards 4 policies - 2 each for myself and spouse - a 20 year policy with coverage of 1.5M and a 30 year policy for coverage of 0.5M, for each of us. My reasoning is that within 20 years we should have enough saved up so a smaller policy from years 20 to 30 should be ok. We met with a fee based financial advisor and he recommended going with Prudential for lowest rates.
I’d love to get any feedback or thoughts about whether this seems ok or on how to think about the duration and amount of the policy. For instance, would a 30 yr policy for 2M for each of us make more sense, or is that overkill?
I am also not aware of how various providers stack up in terms of payouts, exclusions in the fine print, convenience etc — if something happens, the last thing that I’d want is for the insurance company to delay or avoid paying out the policy. So, I am trying to get a sense of whether Prudential is a good choice from this perspective — any advice or pointers here would be greatly appreciated.