Currently in training, married no children but planning on trying in the near future. Wife works in a low paying job and will likely be stay-at-home for a few years after giving birth, if not more. Ideally if something were to happen to me I'd like my family to still live comfortably and my wife to have the option of not having to work. Having said that, I've used term4sale, played around with spreadsheets, run various scenarios and I'm having a difficult time honing in on the best term-life strategy, there are just so many unknowns (future expenses/salary, market performance, etc.). We have savings in the low six-figures and no debts, but I'm not sure how much insurance to get, for how long or what type of ladder I should setup if I decide to go that route. Right now I'm thinking $3M at the max, with the most conservative strategy being $3m for 30 years, but I think (and would hope) I'd be overinsured in 15+ years with even a moderate savings rate (even accounting for inflation), and it would also be a heftier premium. On the other end of the spectrum, an aggressive savings rate and good market performance, I could do something like three $1M policies at 10, 15 and 20 year lengths. However, that could also leave the possibility of being underinsured. Then there's any combination in-between.
How would you suggest I setup my policies? What suggestions do you have as far as estimating future expenses/salary, especially for someone still in training? Right now I'm making estimates with renting in mind, I'm not sure if $3M would necessarily cover homeownership, would it make sense to account for that now or setup a new policy if/when that time comes if I feel underinsured as a homeowner?
Right now, I'm thinking along the lines of $1M 30-year(hope I wouldn't need for full 30 years, but just in case), $1m 20-year and $1m at either 10, 15 or 20-year.
How would you suggest I setup my policies? What suggestions do you have as far as estimating future expenses/salary, especially for someone still in training? Right now I'm making estimates with renting in mind, I'm not sure if $3M would necessarily cover homeownership, would it make sense to account for that now or setup a new policy if/when that time comes if I feel underinsured as a homeowner?
Right now, I'm thinking along the lines of $1M 30-year(hope I wouldn't need for full 30 years, but just in case), $1m 20-year and $1m at either 10, 15 or 20-year.
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