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[quote=Anonymous][quote=Anonymous]$3M on each of us.  Most people are woefully underinsured.  Sit down and calculate how much each spouse contributes to the HHI on an annual basis---then figure out how much money you would need to make off of an investment in order to replace that income.  For SAHM, calculate the value of all the services you provide, as your DH would need to outsource same in the event of your demise.  For example, if spouse makes $250,000 per year, you would need roughly $3,500,000 in insurance proceeds generating a 7% annual return in order to replace the income your spouse was bringing in.  [/quote]

That's one way to look at it, but for many of us, the goal isn't to live off of the interest. That's not feasible or even desirable for most people. A much more manageable goal is to replace the spouse's salary for as many years as it takes to pay off the mortgage or get the kids through college, or whatever the big expenses are. Any extra should go toward savings or investments, not insurance.[/quote]

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