Inspired by another recent thread, I've been doing some thinking about my level of term life insurance and would welcome any input on how much term life insurance I should be carrying. Here are my details:
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- 33 years old, married with two young kids
- wife stays at home and doesn't earn a salary
- current income is $205k base, ~$60k annual bonus (not guaranteed but usually quite likely), ~$60k in annual equity grants
- $370k left on mortgage with no other debt
- $100k in tax-advantaged retirement savings
- Current annual spending (excluding retirement savings) is ~$95k (mortgage comprises ~$35k of that)
I've currently got $2M in 30-year term but have started wondering if I need more. In the event of my demise, my wife could go back to work and earn a moderate salary (think <$80k), but we'd definitely like for her to be able to stay home with the kids while they're little at least.
Do you think I'm under-insured? Thanks for any thoughts.
.
- 33 years old, married with two young kids
- wife stays at home and doesn't earn a salary
- current income is $205k base, ~$60k annual bonus (not guaranteed but usually quite likely), ~$60k in annual equity grants
- $370k left on mortgage with no other debt
- $100k in tax-advantaged retirement savings
- Current annual spending (excluding retirement savings) is ~$95k (mortgage comprises ~$35k of that)
I've currently got $2M in 30-year term but have started wondering if I need more. In the event of my demise, my wife could go back to work and earn a moderate salary (think <$80k), but we'd definitely like for her to be able to stay home with the kids while they're little at least.
Do you think I'm under-insured? Thanks for any thoughts.
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