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Life insurance was an employee benefit when we started on our careers. When we bought our 1st home we bought term insurance because it seemed such a huge debt and we needed to feel flexible enough to change employers if an opportunity arose.. When we paid off mortgage, we re evaluated our imagined needs. Our compromise was to use former mortgage sum plus insurance sum for a well run, taxable, Dividend MF to automatically continue to build our wealth. Would you feel better reallocating the premium sum to an investment?
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This is the outline of my non-work life insurance. All term. Laddered per the dates.
I have an additional $1.8M from work. I don't need it, but it is "free" (imputed income only and at a ridiculously loooowwww rate). So right now I am sitting on $4.3M of term life insurance. Way overinsured, but I will not cancel my non work related term life insurance as it is the core of my ladder (see below).
I am over insured in the later years, but that all depends on how my retirement savings does. As I get older, I'll re-evaluate the need for life insurance.Comment
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We had a policy for years. I work PT and make considerably less than DH. He had a policy, I did not. We cancelled it 3 years ago based on what we have saved. We are in our early 50's and not retired.Comment
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What happened? I still have our policies and for $2M 25 year term on DH $1000/year and I have 2 separate policies. Cheaper to buy a 25 then a 20 year when we had kiddo #2. I've probably got too much on him and could easily cut it back but with 1 very nice income I do not like the idea of being forced into any decisions. This way I'm well provided for and the kids. All for the peace of mind of $2000/year.
How much longer on your term do you have? I think we'll cancel it after college. By then we'll have a firm grasp where we are financially right?Comment
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