Mid 30s Couple - Life Insurance Qs

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13thstreet
Posts: 41
Joined: Thu Apr 03, 2014 11:56 am

Mid 30s Couple - Life Insurance Qs

Post by 13thstreet » Sun Sep 16, 2018 12:03 pm

Hi all - we are planning to look at life insurance this year and hoping to get some insight from the brain trust. Here's our info below:

35/32 year old
no children yet - but planned
His Income: 500k, Her Income: 100k
we have umbrella insurance currently at $2million

It sounds like term is the way to go, here's what I'm looking for suggestions on:

Is 20 year term most logical?
How much life insurance is reasonable given our stats?
What is a reasonable monthly cost for such coverage?
Any great companies folks recommend we check with?
Anything I should do/know before I apply for insurance? I am expecting a physical/biometric screening, etc.

Many thanks!

HereToLearn
Posts: 198
Joined: Sat Mar 17, 2018 5:53 pm

Re: Mid 30s Couple - Life Insurance Qs

Post by HereToLearn » Sun Sep 16, 2018 12:27 pm

What is your goal in purchasing life insurance? Do you need the proceeds to pay off a mortgage?

We didn't bother with life insurance until children were born.

Sportswhiz00
Posts: 153
Joined: Mon Aug 18, 2014 8:04 pm

Re: Mid 30s Couple - Life Insurance Qs

Post by Sportswhiz00 » Sun Sep 16, 2018 12:33 pm

You’ll really only get a feel for how much you need once you start getting quotes. Because obviously you think you want a lot but then you see the price and you may not want to pay for as much. With your income and kids coming, 5 million on you and a couple of million on your wife is a decent ballpark if you want your wife to be able to live easily if you die and you want to have some flexibility in terms of child care options or your work schedule if she dies. (That’s what I get with your incomes.) Would cost u few hundred a month depending on length of term and your health and so on. I staggered my policies as I believe my needs for insurance will go down over time as I have more savings and kids get older, so $x in a 10 year term, $y in a 20 year term and $z in a 30 year term.

As far as how to get it, I just went with a local independent broker who came through a referral. She gave me five or six options and I picked the company and policy.

As far as what you’ll need to do, I had to fill out health history for five years or so (all docs visited) plus do a pee and blood test (they came to my house).

As far as when to buy, the time is now while you are in good health. It’s very cheap if you are young and healthy. It’s very expensive or impossible to get if you’re not. I unfortunately just had a friend same age as your wife who just got diagnosed with cancer and she doesn’t have any life insurance — she didn’t need it now bc she doesn’t have kids yet but by the time she does I’m guessing it will be impossible to get coverage.

fourwheelcycle
Posts: 476
Joined: Sun May 25, 2014 5:55 pm

Re: Mid 30s Couple - Life Insurance Qs

Post by fourwheelcycle » Sun Sep 16, 2018 2:54 pm

You have not told us about your savings, your monthly expenses or target spending level, wife's desire to continue working or stop when kids arrive, and husband's and wife's job security and likely future income trajectory. If you know the answers to these questions you should be able to assess the level of insurance you need. Twenty years sounds good for the term, since that will put you into your mid-fifties, hopefully with very good savings, by the time your insurance cuts out.

My wife and I both worked, with jobs that had good job security and provided twice the income we needed to run our (modest) household. My wife planned to continue working, and did so, after we had children. By the time our kids arrived, mid-30's, we had saved enough to provide an adequate backstop if one of us ever died, although we did assume the survivor would continue working full time. As a result, we never bought any extra insurance besides the 1X pay we got almost for free at work.

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