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Ugh. In for another brutal day
Can someone please refer me to KPMG?
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Buy 20 year term for $10m cover and sleep well
Depends on what your family needs. I had about $3m plus what work provided. Much expired in next two years as houses paid off and kids out of college.
Seems a lot at first glance.
The answer depends on the life style you’d like your family to maintain and how much they’d spend.
If you die tomorrow, with your $4M insurance your family would have $14M. That’s somewhere around $420-560K withdrawal rate at 3-4% used for early retirement assessments. Is that enough for your family or do you need more to be comfortable?
If you need more, you can do ladders. Eg, buy $4M for 10 years, another $2-3M for 20 years.
You seem to have plenty but if some more insurance helps you sleep better, go for it! That’s why you work hard and earn your money.
You already have a huge nest egg there. Look at cost to payoff home and cover all future college stuff… both of which are likely under your $4M policy. Leaving you more than $10M for your wife to live off. That’s a ton with no mortgage. Unless you are living a pretty crazy lavish lifestyle, that should be more than enough. I’d stay where you are and not pay the insurance.
Disability probably makes more sense
…don’t forget second-to-die insurance, as well as
It depends on your current liquid NW and annual expenses / burn rate family needs to cover after you’re gone. My guess is $7-8M is more than needed. Are you trying to replace your net income for 10 years or ensure they can safely cover all their expenses & maintain their lifestyle? Your goal should be the latter. You sound focused on the former in your post.
I was thinking of largely replacing the effective savings (salary - taxes - my share of expenses) i would contribute to in the next ten years