How Much Life Insurance Do You Have?

[jIM_Ohio]

The thing you have to think about is if you and your wife die. You don't want them to be a financial burden. I have the kids goinf to one family matter and another one controling the trust. I think 1.5 million would be enough to take care of the kids and pay for college and high school

I had my kids going to a god parents house and the $ 1M is nearly intact for them at college.

Invest $1 M in the following ways:
1) take out a one time $75,000 housing allowance to modify house for two boys.
2) take out 25k for a two time car allowance (if god parents need a bigger family car). I know one of the two custodians in the will already has a minivan with 3rd row but only 2 kids. But other possible custodian does not, so this provision is in a letter of instruction.

900,000 left will generate $36,000 per year in interest and also appreciate by 1% per year. RPSIX is the suggested investment (15% equity and 85% bonds). Usually has a 4% yield with mild volatility in price.

We spend much less than 36k taking care of boys now, so my though is 36k covers their expenses without issue. The advice is if this can be less, they should reinvest around $5000 into RPSIX (so future withdraws can be higher).

If my kids do not require daycare (the child of the preferred guardian is watched by family), then the 36k will go far.

The following year the 900k is now 909k and withdraw is 36k and change.

This continutes and in 16 years the 900k became $1 M.
The instructions we have go further to suggest that if kids need a private HS (might be needed depending on which guardian has custody), that this whole plan still works with a moderately priced private HS.

I'd like to think 200-400k in 16 years funds a pretty good college education. Maybe I am wrong, but considering my bill for 6 years was 84k or so, 400k seems reasonable or generous.

Sometime before college the 900k principal is split (50% to each kid) and they can allocate money for college as they see fit. Once money is split, it should NOT be combined again.

All this is outlined in a sealed letter of instruction in our safe which is where the wills are and life insurance docs are too.

The above plan does not even account for retirement plans, which would probably be another 500k-$1 M when my kids turn 18 (even if I died today).

[TBH]

We have 20-year term, $500k on each of us. We were probably a bit over-insured when we bought it, but it's just right now. It's more than 10X income, but we have extenuating circumstances--

1. We're unmarried and won't be eligible to receive SS survivor's benes (altho our son will be eligible)

2. I have medical conditions that mean I probably won't qualify for insurance ever again, so I'm glad we bought more than we needed 5 years ago.

There's a rider that allows us to extend it when the term is up. The premiums will change based on our ages at that time, but my health can't be reclassified, which is the significant thing.

[cptacek]

We have $100,000 on him in whole life. yeah yeah, I know, I need to change it. But somehow, I'm scared to try don't know why. Maybe because last time we went in to our Farm Bureau agent he not only convinced me to not drop the whole life, but up it as well (I canceled the extra the next day.)

We have $100,000 on him through my work and $500,000 on me through my work as well.

Should we have independent policies AND work policies? In case of job changes, etc?

[jIM_Ohio]

At work you have a rate established by the average employee demographic.

Part of that demographic is age. If dh is above the average age, the "thru employer" might be a bargain. If you are both younger, getting private policies will be a much better deal.

There is a bulk discount with the employer plan, so shop and compare. I bet your employer picks up a fraction of the costs too.

I only use what my employer gives me for free (2X salary). I can buy more (for example I buy more short term disability, long term disability and one other thing- IIRC)

[feh]

$400K on me, and $150K on my wife. We're 5 years into a 20 year term policy.

We bought the policy to allow the surviving spouse some freedom with respect to raising our son. Our house is paid off, his college is paid for, and we should be pretty well set for retirement.

When the policy expires, we don't plan on buying it again - with our child through school and retirement (hopefully) not an issue, we shouldn't need it.

[noppenbd]

$750K for me, $450K for wife plus we each have about $50K through her employer. They are 20-year level term policies and I think we got them about 2 years ago. In 20 years we hope to be self-insured.