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what's the typical formula? my remaining earning potential? whatever amount to pay off living expenses for my family? or there really isn't any?
I think you have the idea. You would want enough money for your dependents to be able to purchase the goods and services you would provide if you were alive.
Remember Social Security payments for a non working spouse could be minimal if die early.
seems like a 50/50 based on the responses.
sounds like once we have kids, it becomes a must have.
It's really your wife's opinion that matters. If she's seen all of the numbers and is comfortable with the notion of living without your income, there's no need for more life insurance. I'm not a believer in having more insurance (of any kind) than is necessary.
With that said, it might be worthwhile for her, or the two of you, to pencil it all out. Would she manage the rentals herself? Hire a property manager? Sell the rentals? Will she be able to save enough for her eventual retirement?
Other then employers life insurance on us, my wife and I never bought life insurance. The main reasons being we had no kids and either of us could have lived on their income. Though overall I do not believe in life insurance, once kids are in the mix it is something that should, with a jaundiced eye, be looked at. Do yourself a favor. If someone says they are a financial advisor but they for an insurance seller, run fast and hard away from them.
Other then employers life insurance on us, my wife and I never bought life insurance. The main reasons being we had no kids and either of us could have lived on their income. Though overall I do not believe in life insurance, once kids are in the mix it is something that should, with a jaundiced eye, be looked at. Do yourself a favor. If someone says they are a financial advisor but they for an insurance seller, run fast and hard away from them.
I've never met a widow who didn't believe in life insurance.
The whole question of whether to have it is really up to the beneficiary. Ask him or her what would happen if you die. You might get a completely different answer than you think.
If you are on the fence, you may want to consider getting it now. If you wait until some point in the future, it is possible that you will be uninsurable....god forbid you get an insurance physical and find out you have some fatal blood condition. In general, the cost of a 30 year level term policy is pretty inexpensive insurance particularly if you are in good health...so I don’t see a big advantage to waiting to buy if you think it might be of value to you now, and/or you can reasonably expect to need some coverage in the relatively near future (e.g. kids on the horizon).
And don't forget life insurance for your partner who contributes in either cash or services to maintain your lifestyle.
I agree. DS has insurance on DDIL and she's a SAHM who home-schools their 3 kids. No way I'd want him to marry in haste just to get "free" child care.
Also agree with WVNomad's point about getting it now if you think you'll need it later. Look for guaranteed renewable.
When DS was little, his caregiver and her husband bought life insurance that would cover the mortgage balance if he died. AT the age of 50 he was diagnosed with an inoperable brain tumor and was gone in less than a month. She had 4 grade-school age kids and they would have been left destitute without that coverage.
I agree. DS has insurance on DDIL and she's a SAHM who home-schools their 3 kids. No way I'd want him to marry in haste just to get "free" child care.
Also agree with WVNomad's point about getting it now if you think you'll need it later. Look for guaranteed renewable.
When DS was little, his caregiver and her husband bought life insurance that would cover the mortgage balance if he died. AT the age of 50 he was diagnosed with an inoperable brain tumor and was gone in less than a month. She had 4 grade-school age kids and they would have been left destitute without that coverage.
Good thinking mom. You taught your DS well.
Usually the first and only time people quantify the value of SAHM is when they think about insurance. How much would it cost to replace all the services that SAHM does? Child care; cook; laundress; housekeeper; teacher; driver; all the things that change a house into a home and all the things that make a family.
I agree. DS has insurance on DDIL and she's a SAHM who home-schools their 3 kids. No way I'd want him to marry in haste just to get "free" child care.
Also agree with WVNomad's point about getting it now if you think you'll need it later. Look for guaranteed renewable.
When DS was little, his caregiver and her husband bought life insurance that would cover the mortgage balance if he died. AT the age of 50 he was diagnosed with an inoperable brain tumor and was gone in less than a month. She had 4 grade-school age kids and they would have been left destitute without that coverage.
I was a SAHM and I took out a $1m policy on me so that if I died, my husband wouldn't have to worry about that. Pretty happy I did when I was diagnosed with breast cancer. I couldn't get it now if I tried. I was healthy. People think if they are healthy, they aren't going to get cancer but it doesn't work that way. I know people who ate clean, exercised...did everything right. It's a gamble.
OP
You don't sound like YOU need life insurance but your wife might consider having policy on your life since you are the main income producer. It would suck to lose a spouse, have to change your lifestyle immediately, start being 100% up to speed on paying bills, rental properties, meanwhile you are probably depressed. What if she was pregnant when you died, maybe unknown or you just didn't get around to thinking about insurance in a short time.
My husband and I never had a life policy, no regrets, but we were each fully employed and life would not crater financially, just emotionally if one person died. No kids. Low mortgage.
Best prices for term insurance are young years before any medical condition pops up, something you didn't even know you had until the medical exam. Heart murmur, pre-diabetes. Lots of things appear with each year of aging.
I agree not to tie policy to your employer, you want to keep this policy in your hands, employer policy can be "extra".
This is low-cost no brainer. Get a 20 year term life policy for $1 mil or more. Cheap peace of mind for your wife.
I've never met a widow who didn't believe in life insurance.
The whole question of whether to have it is really up to the beneficiary. Ask him or her what would happen if you die. You might get a completely different answer than you think.
Then you should meet more maybe? All of my income is passive income, and there’s no such thing as “how long would the money last,” I just get richer every single year and the money grows. We don’t need life insurance. If I died, my wife would keep getting richer every year. If investments stopped paying out, she could live on the cash alone with no interest for 40 years. That’d be a long time to have 10 separate investments neither pay cash flow nor sell. So now you’ve heard of a potential widower who doesn’t care about “life insurance.”
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