DH and I each have about $600K in renewable term life insurance. We each make about $100K a year and our two kids are 17 and 14.

I don't think it's enough. On the other hand, our house (worth $850K or so) will be paid off in 4 years; we have about $1.8M in retirement accounts and another $300K in liquid savings; and we have $280K saved for college. If something happened to either one of us (or both of us), it would be ok.

I think we will drop it when our younger child is finished with college - so another 8 years.

About $500k on me, about $750k on DH. HHI is about $240k. Basically, we wanted enough to pay off the mortgage (about 300K left) and have some left over to invest/pay for college, etc. we both have good incomes so could easily support ourselves on one income if the mortgage was gone.

We are early 50s and have term life for $1m each that will end at 65. We look at it basically as an income supplement if one spouse were to die. At that point college will be done, mortgages paid off, etc. We also each earn enough to support ourselves so really could probably drop it earlier but it's not expensive so I expect we will keep it.

I'm (slowly) convincing husband to drop/lower his term life insurance. At age 60, even with good Fed Govt coverage, the cost skyrockets. I would recommend term only until all kids are thru college, then drop no later than 60. If college can be paid for otherwise, then if you need to drop sooner, drop when all are out of high school.

Anonymous wrote:We're in our 50's and have no life insurance. We self-insure using our other assets. About $2.5 million in retirement and other investment accounts. Home paid for. HHI $150K. Added insurance seems a waste.

That makes me feel a little better. We don't have quite so much saved, but could also downsize fairly easily and I wouldn't feel too badly if college wasn't paid in full.

Anonymous wrote:Term insurance premiums don't increase during your term. That's the thing. Whole life premiums increase.

$2MM each. Two kids under 9. 30 year term.

guaranteed level term policies don't increase; renewable (but not level term) policies do increase-- they are age-rated (but not health rated) so as you get older they get more expensive.

Anonymous wrote:We're in our 50's and have no life insurance. We self-insure using our other assets. About $2.5 million in retirement and other investment accounts. Home paid for. HHI $150K. Added insurance seems a waste.

In your case, yes, it is a waste.

Basically, buy term life.

Enough to pay for kids college, mortgage, running the house, spouses retirement (without having to work). So around 2M for household income of above 200K, and 2 kids in school)


Once kids are out of the house, and your own retirements, investments etc. are in place, then you do not need the life insurance.

Our financial planner said 10x your annual income is how much you should have in life insurance.

We're in our 50's and have no life insurance. We self-insure using our other assets. About $2.5 million in retirement and other investment accounts. Home paid for. HHI $150K. Added insurance seems a waste.

State Farm has a calculator.

https://www.statefarm.com/insurance/life/resources/life-needs-calculator

We have 2M between us for a HHI of over 200K.

Term insurance premiums don't increase during your term. That's the thing. Whole life premiums increase.

$2MM each. Two kids under 9. 30 year term.

We have 500K, 2 kids under 5. HHI: 100K. I don't think it is enough, but due to health issues we are not able to get more without paying more than we can afford. It also is only on me. DH is a SAHD, and we have no insurance on him. If anything happens to him, I will need help from his family to cover child care. We definitely will reevaluate insurance levels as time goes on. We will need less as our child care needs decrease and as our mortgage decreases.

2MM each. 2 kids under 5. 20 year term. HHI: 375

We have 900k. 2 kids under 5. I don't know if it's enough. 30 year term. HHI 150k

How much life insurance do you and your spouse have and what is your HHI? Do people drop it after kids get to be a certain age? What age? Do you keep it forever? I am talking about Term Insurance where the premium increases a bit each year.