Hi there! 33M here with wife (35) and 2 kids (2 and 4). Hoping to get some thoughts before moving forward on some replacement/additional term life insurance. I've been approved with Banner Life for $4M of term life insurance. I can get it in two chunks of $2M each, and I have to decide among 15, 20, and 25 year terms for the two chunks. Part of this is replacing my current 20 yr, $2M policy that I'm ~4.5 years along on right now. I had cancer 5.5 years ago that was removed with surgery and I've had zero recurrence, so I am replacing the policy I got 1 year after that, and adding to it. The current policy premiums are $127/month. The rates for each $2M chunk of the new insurance would be:
For reference, I have a decent salary with comfortable bonus potential (probably will average ~$200 to $300k total comp over the next few years, likely increasing gradually after that), live in a medium COL area, my wife doesn't work at the moment while she raises the kids but she is trained as a teacher and will probably want to go back once the kids are in school, we expect we may have one or two more kids over the next 4-5 years, we owe ~$315k on our house (4 years into a 30 yr mortgage at 2.75% - sort of locked into this house until rates come down or I have a big year and can make a bigger down payment), ~$80k in student debt (at ~2.2%, 17 yrs left), have ~$150k in retirement savings, and we put away 15 to 20% of gross salary toward retirement savings each year.
Any thoughts on which two of these options to choose for the two $2M chunks, and/or how you might approach the question? Also, I realize I'm probably agonizing over this question too much, and if that's the case, tell me so...and also still which options you would choose if you were in my position
