Reply to Do we really need a will and life instance?

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[quote=Anonymous][quote=Anonymous]OP again, for term life insurance we decided we need much more for the next 10 yrs (kids are 1 and 3),  less for the next 10 yrs, and none after 20 yrs.  So we're considering 2 plans--a 10 yr plan ($300k each) and a 20 yr plan ($500k each). Anyone else do this? Are we thinking correctly? Anyone have recommended resources? I feel like everyone says--yes, get insurance but they don't say what type/what to cover.

For now, we'd need enough to cover 1 salary, since we need that to cover 20 yrs of mortgage plus college savings.  In 10 yrs we'll only have 10 yrs of mortgage and college plans to fund( till kids leave for school). After 20 yrs we need none, since kids will be out of house. [/quote]

I think it's perfectly reasonable to layer policies like that.  We didn't do that in the end because I think it wasn't that much more to get the 20 year policy for the full amount, we're a little conservative (i.e. perhaps overinsured for some years) and you can always ask them to reduce the amount of the insurance benefit later (in effect turn an 800k policy into a 500k policy).

P.S. I would stay away from return of premium policies-- because 1) I don't think you should mix term insurance policies with an investment; and 2) not sure if they were ever a good idea, but the rates seem to be getting even worse lately[/quote]

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