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Critique My Term Life Insurance Plan

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  • Huggy
    replied
    Originally posted by White.Beard.Doc View Post
    You don’t have kids, your future spouse is young and employable. So there is no one relying on your income if you were to get hit by a bus.

    The only reason to buy life insurance now is if you feel it is likely you won’t be insurable in a few years.
    That's the problem. I assume that I will be insurable in four years, but my crystal ball is cloudy. Guess I'll just take the risk and go without it for the next few years until we have kids. Definitely don't want to be one who is over insured and unnecessarily doomsday prepping.

    Leave a comment:


  • jfoxcpacfp
    replied
    Originally posted by White.Beard.Doc View Post
    You don’t have kids, your future spouse is young and employable. So there is no one relying on your income if you were to get hit by a bus.

    The only reason to buy life insurance now is if you feel it is likely you won’t be insurable in a few years.
    Feel?

    Leave a comment:


  • White.Beard.Doc
    replied
    You don’t have kids, your future spouse is young and employable. So there is no one relying on your income if you were to get hit by a bus.

    The only reason to buy life insurance now is if you feel it is likely you won’t be insurable in a few years.

    Leave a comment:


  • jfoxcpacfp
    replied
    Originally posted by Huggy View Post
    I will purchase a large (3-4? million, laddered?) 20-25 year policy
    No idea of the minimum safe amount and terms without a plan in place including your spouse. Everybody is different.

    Leave a comment:


  • Huggy
    replied
    Thank you all for the thoughtful feedback. Based on everyone's input, I will hold off on getting an individual term life policy and just stick with my small hospital policy for the next four years. I will purchase a large (3-4? million, laddered?) 20-25 year policy upon residency graduation which will be around the time when we start trying to have children.

    Leave a comment:


  • loeffy
    replied
    I think you can wait until kids are closer in the picture. I'd also reconsider laddering policies or making projections about savings. Insurance is for worst case scenarios. Consider the scenario where you don't save as much, get disabled, etc. and end up under-insured. Term life is cheap. Don't forget about SS survivor benefits too.

    Leave a comment:


  • jfoxcpacfp
    replied
    We don't typically recommend life insurance for singles unless someone would suffer financially if they were to pass unexpectedly. This happens most often in families where the child is expected to and plans to care for parents, and sometimes siblings. The clients so far have been of Asian and African heritage and I have learned over many sessions this is very typical and just include that goal as part of the plan.

    Don't know whether that applies to you or not. Otherwise, why are you considering a policy at this point?

    Leave a comment:


  • Molar Mechanic
    replied
    Wait till you're married. Buy the 10 year, 1m policy. Once you have children, buy a 20 yr policy for 5x income.

    Once you have a investible assets of 5x income, reconsider your needs and what policies you want to own.

    Leave a comment:


  • JBME
    replied
    The first question to ask is whether people depend on you. You don't have kids....do you have a non-working spouse? I would hold off on buying any term insurance actually. While you're getting good rates there I don't see a need right now and it's not going to be that much more expensive to buy this in 4-5 years. By then you can get $1m term on a 30-year for under $700 still.

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  • pierre
    replied
    I’d just wait to til next year to buy when you have another $80k of income.

    Leave a comment:


  • Scott at MD Financial Services
    replied
    Sounds like you have minimal needs at best right now, why don’t you just buy a 10 year contract, save the money and as things change then buy different coverage? If you buy a 25 year contract now and have kids in 4-5 years you then will have a 20 year duration left when they are born. My thought is to buy the 10 now and buy a new 20 year contract in 4-5 years. Assuming good health it will save you precious money while your in training and money is tight.

    Leave a comment:


  • Huggy
    started a topic Critique My Term Life Insurance Plan

    Critique My Term Life Insurance Plan

    New intern here (salary of 50k/y), planning to purchase term life insurance in the next few weeks. I'm currently engaged (finace will be making ~80k/y starting next year with no significant upside potential) with plans to have two children in about four to five years from now. My nearest age is 27, and I have no medical conditions and don't partake in any risky hobbies. I will be going into general, private practice dermatology, so based on MGMA data should be making approximately 400-550k throughout my career. I don't desire to retire early and hope to work at minimum part-time up to the age of 60-65 or beyond. Hoping to have a savings rate >30% especially early on. I'd truly appreciate any critique of my plan and current offerings. I went with 25y rather than 30y because I imagine I'd be financially independent by age 50, hopefully?

    Quote from Banner Life:
    -25y 1mil - $505.29 annually
    -20y 1mil - $298.99 annually
    -15y 1mil - $284.99 annually

    Quote from American General QoL Flex Term
    -25y 1mil - $569.10 annually
    -20y 1mil - $334.20 annually
    -15y 1mil - $227.90 annually
    Although more expensive, this policy comes with three riders:
    1) Chronic Illness Accelerated Benefit
    2) Critical Illness Accelerated Benefit
    3) Terminal Illness Accelerated Benefit
    I'm assuming that I shouldn't put much value in riders for a term life policy as I've never seen these recommended in the past?

    Should I get more quotes? Change my plan? Buy more insurance? Money is tight now as an intern (the two of us are living off of my 50k), but I want to lock in good rates and buy what I need now.
    Thanks.
    Last edited by Huggy; 07-26-2021, 10:17 PM.
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