Term life + ss survivors benefits

[dandan14]

Can you folks help me think through something?

It seems at this point in my career, Social Security Survivor's benefits are fairly generous -- and would cover about 3/4 of our current living expenses should I die. (If my wife were to die, her survivors' benefits are much lower.)

So my thinking is that I could adjust my life insurance (covering my life) so that:

Savings + insurance payout would spin off enough money to supplement the SS benefits. Right?

After the kids are grown, the survivors benefit would no longer pay out, so I need to make sure that at that point, my wife could either fully live off the nest egg or have a job and supplement it with nestegg earnings.

Thoughts?

[FiveK]

One thought: how much is the cost difference between term life that would cover
- 1/4 of current living expenses, vs.
- 100% or even 150% of current living expenses (kids' college, etc.)?

And what fraction of current income is that difference?

[Hillview]

Could be -- what about college savings? mortgage?

[Nate79]

For me, the cost of term life is so low that I would rather be safe than sorry. Kids college, enough money for retirement, help with child care, pay off the house, etc. With SS survivors benefits probably makes me over insured but that's ok.

[dandan14]

One thought: how much is the cost difference between term life that would cover
- 1/4 of current living expenses, vs.
- 100% or even 150% of current living expenses (kids' college, etc.)?

And what fraction of current income is that difference?

I'm only talking about cutting the policy on my life -- so I would probably save $250-$400/year depending on how much I cut. So that's fairly negligible in the grand scheme, but still it's money.

[dandan14]

Could be -- what about college savings? mortgage?

I figure the mortgage is just part of the yearly living expenses. I've never really understood the logic of planning to pay off a house when someone dies.

College savings are reasonably well funded already.

[FiveK]

So that's fairly negligible in the grand scheme, but still it's money.

Well summarized. Now the two of you get to decide which clause is more important.

[BL]

Can you folks help me think through something?

It seems at this point in my career, Social Security Survivor's benefits are fairly generous -- and would cover about 3/4 of our current living expenses should I die. (If my wife were to die, her survivors' benefits are much lower.)
Children covered to age 18 or finish h.school. Mother until youngest child is 16 if under income limits.
So my thinking is that I could adjust my life insurance (covering my life) so that:

Savings + insurance payout would spin off enough money to supplement the SS benefits. Right?

After the kids are grown, the survivors benefit would no longer pay out, so I need to make sure that at that point, my wife could either fully live off the nest egg or have a job and supplement it with nestegg earnings.
Surviving spouse SS at age 60 (reduced) or higher. I would shop around for lower cost term at independent agent or check term4sale.com for comparison. Would like to see enough to pay off the mortgage.

Thoughts?