Term Life insurance-how much do I need?

[Like2Plan]

Hi everyone,

I decided that I need to get term life insurance.

What am I insuring for? My wife and I both work and have only been married 1 year. We plan on having kids and plan on owning a home. In case something happens, I'd like for those potential kids to be provided for and eventually go to college

elessar.
I have used this in another thread: You need ins so that your spouse/child do not have to make immediate monetary life style adjustments due to your unexpected passing....

My take is a little different than others. While "just in time" life ins would be great, it sometimes doesn't work that way....

Some thoughts--Life ins through your employer is often very cheap because sometimes your employer picks up part of the tab. If you are going through your employer, sometimes you can't opt back in immediately if you have opted out. Sometimes you have to wait until open season or a "life changing event" such as a birth of a child--however you might not be able to get the coverage when you find out your DW is expecting... It would be good to find out what your options are.

Most life ins requires a physical. It is easier to qualify for life ins when you are young and healthy.

1mil--seems like a lot to me, but maybe you've found a really cheap policy (and I don't know how far away you are from having kids) ... I think you have to achieve a balance. You have a lot of things you are going to have to spend money on--a house, future kids... It would not be good if the ins premium drains away from your other saving initiatives. That is where I think you may have the cart before the horse, but only you can take a look at your situation and decide what is best for you.

[snafu]

Meanwhile, use the $$$ you would have paid in premiums to invest in higher risk Vanguard, International Mutual fund via DCA [dollar cost averaging]. That will get you used to the added monthy, bi annual or annual payment. When you need insurance, use the profit to pay the premiums

[Alex_Adviser]

A large part of choosing a life insurance policy is determining how much money your dependents will need. Choosing the face value (the amount your policy pay) depends on:

How much debt you have: All of your debts must be paid off in full, including car loans, mortgages, credit cards, loans, etc.

Income Replacement: One of the biggest factors for life insurance is for income replacement, which will be a major determinant of the size of your policy.

Future Obligations: If you want to pay for your child's college tuition or have your spouse move to Hawaii when you are gone, you will have to estimate the costs of those obligations and add them to the amount of coverage you want.