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Bear in mind that what’s right for me or any other stranger on the internet may not be right for you. You need to consider your needs and objectives and assumptions. Will your spouse work? Will they remarry? How much are your monthly living expenses? How long to you want to cover them for? How much are you willing to pay for the coverage?
We have privately placed (not through work): a million on me, half a million on my wife, none on the kids. Plus whatever I get from work, I think 1x annual salary.
Term, term, term. Unless you’re extremely wealthy or have some other exotic scenario, whole life is just a way to pay for a salesperson’s boat.
Term only. And think about it in terms of number of years of runway you want to give them at current burn rate.
Bigger one is long term disability. If you die chance are your family will reform somehow. If you go long term disabled that is a big change. LTD is a good one to consider.
Thank you for the LTD suggestion. Very important to think about.
You currently have health insurance, yes?
My first was a c-section. That was costly even with insurance. The other two were natural births. Much more palatable.
Do you contribute to your HSA or have a plan that allows it?
What kind of insurance? I assume you mean life?
I’m sorry, yes I mean life insurance. We have health insurance. And specifically for myself, I just don’t want to leave my family with nothing.
There are a few calculators online that can help, basically it comes down to what expenses do you want to pay (ie, kid’s
college) and what income do you want to replace, net of what you have saved.
https://www.bankrate.com/insurance/life-insurance/life-insurance-calculator/
As P1 mentioned, answers vary widely, as in, my kid can go to community college (free, little) to I want to plan an Ivy League education for my kid (85-90k todays dollars).
Also, any financial advisor would walk you through the process if you want a professional. I have $2M private plus 6x comp through the firm, but that may be well more than you need.
Thank you principals for the guidance! This is exactly what I was looking for. I have a good idea where to look now. Really appreciate the help 🙂