How to solve this life insurance problem?

[Anonymous]

What are you trying to insure for?
Without knowing that, it is hard to provide a POV.
Are you employed and you want life insurance to cover what your future income would have been in support of your family so that they can continue having the quality of life that they currently have?
Do you have insurance that is through your current employer?
My term policy was to provide financial flexibility that would enable my spouse to flex to not work if needed to support family through what would be an transition. This included paying off the house, fully funding 529s for undergrad with the expectation that previous savings for retirement as well as pensions would be adequate for living expenses.
You need to look at your assumptions to see what your families needs are - what options you have - and how to create a plan for appropriate coverage.

[Anonymous]

Anonymous wrote:OP here…thanks for these replies. Whats the best thing to do financially in this situation, then? Do we increase our savings in some way to mitigate risk to my husband and kids (ages 10 and 12)?

Glad you are doing better OP!

If your workplace offers life insurance, try to enroll. Some places don't look at your medical history.
Otherwise, keep saving and MAX out 401K at work.
If you are not working, do a PT job or side job. That way you can invest and MAX out on ROTH.
This is the best we can do for our future and retirement.

Also, 529 college funds if you don't think they will qualify for financial aid.

[Anonymous]

Anonymous wrote:This isn’t helpful to OP but everyone, if they can, should be getting a 20 year policy the year their kids are born for max protection

No. Always get a 30-year term in this situation. Broker here again. What if your last kid ends up being born seven years after your first kid (either intentionally or accidentally)? Then your term runs out when they’re 13 years old.

And you may think you’ll have enough money saved up in 20 years, but what if you face more layoffs and career instability than anticipated? I see this stuff all the time. If a 20-year policy costs $1,000/year, then a 30-year policy will maybe cost $1,500 per year.

I guarantee the OP wishes she had done something like that. And you can always cancel a 30-year term after 20 years if you end up not needing it. Nickel and diming your future self by skimping on the term length is really dumb.

A few companies even offer 35- and 40-year terms now, which can make sense in certain situations. The public seems to be under the impression that no one over the age of 59 ever needs life insurance, and I can guarantee you that this is not true. As an example, I just wrote a policy for a 66 year-old business owner who makes $1.5 million a year. He’d rather pay $9,000 a year for a $2 million policy than risk not having enough liquidity, as lots of his assets are tied up in the business.