Life Insurance?

[Anonymous]

DH is 44, has great life insurance through federal employment. I'm 47, self-employed, and don't have any. We have assets ($2M house with $400K mortgage, brokerage accounts worth $600K, ~800K in TSPs and IRAs, good 529s for the kids. Kids are 6, 10, 13.

[Anonymous]

Did I miss your question? You wrote Life Insurance but what do you want to ask? Which company? How much? Which type? How long the term?

[Anonymous]

I think OP's question is whether she needs life insurance or if she is effectively self-insured. How much are in 529 plans? What is your income v DHs? I'm probably in the minority in suggesting you might be okay without it given your assets.

[Anonymous]

We can't tell you for sure, but for someone in your position, I'd say that it's very likely that term life insurance would be a very good idea. It might also be a good idea for your husband, because for people in good health, FEGLI is often a worse deal than getting life insurance on the open market. If you are both in good health, life insurance should be relatively inexpensive.

https://www.fedsmith.com/2012/06/14/life-insurance-good-bad-fegli/
https://www.moneygeek.com/insurance/life/types/fegli-vs-term/

[Anonymous]

Anonymous wrote:DH is 44, has great life insurance through federal employment. I'm 47, self-employed, and don't have any. We have assets ($2M house with $400K mortgage, brokerage accounts worth $600K, ~800K in TSPs and IRAs, good 529s for the kids. Kids are 6, 10, 13.

Both of you should get 20 year policies in the open market. Great age to lock it up before things get more expensive as underlying health issues begin to surface. Get enough so that the other person can afford to quit their job and take care of kids until they turn 18 (In your case, 12 years) plus enough to pay for college (minus already saved). For example, if your annual expenses are 100K and you expect college to cost $600K and you have enough saved for college that will grow to about $400K), then get a $1.4 to $1.5m policy for both of you. This is rule of thumb based on the limited info. you provided. Talk to an Insurance agent to determine exactly how much they recommend, but apply some common sense to their number since they always want to buy more than necessary.

[Anonymous]

You (the OP) need insurance to make sure your husband can pay for a Nanny and therapy for the 3 kids until the youngest is 18 (at a minimum). Any additional insurance for college tuition is fine, too.

[Anonymous]

Anonymous wrote:You (the OP) need insurance to make sure your husband can pay for a Nanny and therapy for the 3 kids until the youngest is 18 (at a minimum). Any additional insurance for college tuition is fine, too.

The have $1.6m equity in a house, $600k in brokerage accounts, $800k in retirement, and "good 529 plans for the kids". If her DH earns $250k and OP earns very little (so her income won't be as missed) and "good 529 plans" means they are fully funded, then her DH may not need any life insurance money, or very little. He and the kids get her social security survivor's benefit plus he's got a $600k brokerage account he can access right away for any short fall.

[Anonymous]

OP: yes- wondering if I really need the health insurance. Feel like we are borderline, but since we are both healthy it's probably a good idea to get some for myself at least to be safe.

So, any recs on what type? I know term is generally frowned upon, but in my case maybe it makes sense?

[Anonymous]

Anonymous wrote:OP: yes- wondering if I really need the health insurance. Feel like we are borderline, but since we are both healthy it's probably a good idea to get some for myself at least to be safe.

So, any recs on what type? I know term is generally frowned upon, but in my case maybe it makes sense?

Whole is generally frowned upon.
NP

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP: yes- wondering if I really need the health insurance. Feel like we are borderline, but since we are both healthy it's probably a good idea to get some for myself at least to be safe.

So, any recs on what type? I know term is generally frowned upon, but in my case maybe it makes sense?

Whole is generally frowned upon.
NP

OP- yes. I meant whole. Wish you could edit easily. More coffee needed.

[Anonymous]

At 47 and based on your kids ages, go for 15 year or even 10year term insurance. It'll be a lot cheaper than 20-25 year.

I got our 20-year term insruance at age 38 but I'd be paying a lot more if I got it now (10 years later).

Added benefit: proceeds from life insurance payouts are not taxable.

[Anonymous]

Very few if any people have excellent life insurance through the federal government.

You don't say how much you earn but I'd get $1-1.5 million level term insurance for 20 years (or maybe 15 if 20 is too expensive) for both of you and drop the fed insurance

[Anonymous]

To each his / her own, but my husband and I think anyone with dependents should have life insurance.

[Anonymous]

Anonymous wrote:OP: yes- wondering if I really need the health insurance. Feel like we are borderline, but since we are both healthy it's probably a good idea to get some for myself at least to be safe.

So, any recs on what type? I know term is generally frowned upon, but in my case maybe it makes sense?

Yes, you DO need health insurance.

[Anonymous]

Anonymous wrote:Very few if any people have excellent life insurance through the federal government.

You don't say how much you earn but I'd get $1-1.5 million level term insurance for 20 years (or maybe 15 if 20 is too expensive) for both of you and drop the fed insurance

more importantly, the additional life insurance over base salary will double in expense as soon as DH turns 45.

my spouse is self-employed, he has a 20-year $1m policy which runs around $1000 a year. i've got more dependents and am the primary wage earner, so am in the process of acquiring an additional 20-year $1m policy which will run around $1450 a year since i'm 50.

i currently am carrying around $1.5m in life insurance, we have a 2 year old and similar assets.