Another life insurance q

[Anonymous]

I'm waffling on getting more life insurance. Here are our details:

- Husband, $250k 18 yr left on a 20 yr policy age 42
- Wife, $250k 23 yr left on 25 yr policy age 40

We have two kids age 4 and 1. Have net worth of slightly over $1m but income is less than $100k (expenses are low, no debt outside of less than $200k remaining on mortgage). Wife also has approx. $180k policy through work, but may not stay in that job long term.

I'm considering getting another 20 year $250k policy each. Is that enough?

Also recommendations on who to go to to get the best rates/insurance. I was very unhappy with the process last time (took months).

[Anonymous]

I don't know what the rules are here, but I see over $1.5 million available should you and DW get hit by the bus. That will generate plenty of cash for the care of two children who can then spend down principle to pay for college.

Buy more if you like, but I wouldn't be up at night worrying about it.

[Anonymous]

Anonymous wrote:I don't know what the rules are here, but I see over $1.5 million available should you and DW get hit by the bus. That will generate plenty of cash for the care of two children who can then spend down principle to pay for college.

Buy more if you like, but I wouldn't be up at night worrying about it.

If we both die, I think there will be plenty for the kids. I'm more concerned about if one of us dies and the other is left looking after the kids with no income while getting back on their feet. Also, to replace the savings that the deceased parent would have contributed to college and retirement funds.

[Anonymous]

OP here, I should have added that this is more an issue if only one of us dies because while our networth is over $1m, $400k+ of that is tied up as equity in our house which the surviving spouse will likely not have immediate access to because they will need somewhere to live. Plus $250k is retirement funds which will still be needed for retirement, plus $50k for college. Not so much left for everyday living expenses beyond an emergency fund and the $250k policy if there is no income coming in.

[Anonymous]

16:29 again. I thought after I hit "submit" about a prolonged and expensive medical crisis that could precede death and drain the resource pool. And you're right, home equity is basically dead money and very expensive to "use" while you're still in the house. You've answered your own question, I think. Buy more LI.

[Anonymous]

You don't need it, but if you wanted to be safe buy a 10 yr policy. It will be cheaper and you definitely won't need it in 10 years. I might even replace the current policies with $500k each 10 year, which may not cost you any more.