Should I increase life insurance from 1M to 2M?

[Anonymous]

Wife is pregnant with our first, we have a NW of 950k liquid not including home equity. HHI of 300k. I'm more or less the sole breadwinner (she works but doesn't make much) and have a 15 year $1M term life policy that just started a few months ago plus a $650k group life policy through work. If something happened she would have $2.6M, or $2M if I became unemployed and the group policy was lost. I'm thinking of getting an additional million of term life now that we're expecting. Would you recommend this in our situation?

[Anonymous]

Yes, it should be very cheap.

[Anonymous]

We were in your shoes 25 years ago. If you don't want your spouse and child(ren's) life to turn upside-down/have to change if you pass, you need enough insurance to cover the full mortage until it's paid off, and college for all children.

[Anonymous]

Sure, but she should also know how to make the money last and what her career is going to be when the kid(s) are in school.
My ex partner died unexpectedly. I'm very low income earner (long story). We are living well on survivor's benefits now plus my part time income filing as HH. I invested some of my income and it turned into that million. Some stocks and crypto did 10X+.
The kid will inherit $300k at 18, which we won't even touch. Can't get to it before as I have no interest in being the custodian for the child's money.
Shortly, she needs to learn to manage money and not just be handed enough.

[Anonymous]

I would suggest adding a second policy for 30 years for 1M. 15 years is not enough.

[Anonymous]

Anonymous wrote:I would suggest adding a second policy for 30 years for 1M. 15 years is not enough.

My thoughts are that we would be able to self insure in 15 years

[Anonymous]

Everyone's going to have different thoughts/ beliefs on this. Mine was if something happened to me I wanted my wife to be able to not work while raising the kids if she wanted. I ended up getting a policy for our then current HHI x 18 years rounded up to the next million to make sure she had the option.

[Anonymous]

She would have over 1mil if you die, so she would be more than fine.

She will also likely find another partner after you're gone. Sounds harsh, but it's true.

I guess the question is, do you want her to be fine. Or do you want her to be a multi millionaire due to your death.

[Anonymous]

Anonymous wrote:She would have over 1mil if you die, so she would be more than fine.

She will also likely find another partner after you're gone. Sounds harsh, but it's true.

I guess the question is, do you want her to be fine. Or do you want her to be a multi millionaire due to your death.

Sorry, missed the part about your current coverage. She is going to be rich (2mil+) with your current coverage. That's a ton of money.

[Anonymous]

Anonymous wrote:She would have over 1mil if you die, so she would be more than fine.

She will also likely find another partner after you're gone. Sounds harsh, but it's true.

I guess the question is, do you want her to be fine. Or do you want her to be a multi millionaire due to your death.

Not easily with a kid in tow.

[Anonymous]

You can go crazy trying to figure out the right amount of life insurance. $2 million in liquid assets is certainly very reasonable. If you wanted to get another $500k or a million for 20 years, to cover college etc that would also be reasonable, but probably it would do more good for the kid to save the premiums in a 529.

[Anonymous]

Anonymous wrote:

Anonymous wrote:She would have over 1mil if you die, so she would be more than fine.

She will also likely find another partner after you're gone. Sounds harsh, but it's true.

I guess the question is, do you want her to be fine. Or do you want her to be a multi millionaire due to your death.

Not easily with a kid in tow.

Easier than 99% of single mothers/fathers.

[Anonymous]

Anonymous wrote:I would suggest adding a second policy for 30 years for 1M. 15 years is not enough.

Agree. If you should have a child with special needs or become disabled due to accident or illness, you will be glad to have the coverage.

[Anonymous]

Anonymous wrote:She would have over 1mil if you die, so she would be more than fine.

She will also likely find another partner after you're gone. Sounds harsh, but it's true.

I guess the question is, do you want her to be fine. Or do you want her to be a multi millionaire due to your death.

Your bitterness toward women is showing. I know two widows and having financial stability due to life insurance made all the difference in raising their children to be happy and healthy adults. The last thing on their minds was getting remarried.

[Anonymous]

I wouldn't if I were you, unless you have a huge amount left on the mortgage. They would also get Social Security survivors benefits.

On the other hand, if you're healthy, the extra insurance should be pretty cheap, so if it makes you and her feel better, go for it.