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Seeking Feedback on Insurance Plan

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  • Seeking Feedback on Insurance Plan

    Hi all! This is my first post    I just joined the Forum after purchasing the WCI course online, which I HIGHLY recommend if you are feeling stuck on where to turn for financial literacy like I was. I am working on the insurance portion of my financial plan and was seeking feedback on what I have come up with. I would appreciate any constructive criticism. Thank you in advance.

    ETA: Age: 30/31   Annual Income: ~$430,000    1 income household


    • Maintain $13,000 Ameritas disability policy & $1,000 Principal disability policy.

    • Cancel when (husband) reaches retirement.


    • Maintain $3M Minn. Life policy (husband) and $1M Minn. Life Policy (wife).

    • Increase (husband's) life coverage by laddering 2 new policies for $1M each at a 30-year term by March 2018.

    • Cancel each policy individually as we increase net worth - $1M policy can be cancelled when we achieve $1M net worth, etc.

    $5M Life Insurance – provides annual expenses for 25 years, provide kid’s college educations, funeral expense, mortgage payoff and retirement portfolio.

    • Annual Expenses $60,000/year x 25 years = $1.5M

    • Kid’s College Education $227,700 x 2 kids = $455,400

    • Funeral Expense $15,000

    • Mortgage Payoff $500,000

    • Retirement $2M

    TOTAL                            $4,470,400 (Rounded up to $5M)


    • Maintain Renter’s Insurance with for replacement value of home and contents. Cancel when we purchase a home.

    • Obtain homeowner’s insurance when we purchase a home for replacement value of home and contents.

    • Add $1M Umbrella Policy by March 2018.

    • Cancel Wedding Ring & Band insurance policy (self-insured)

    • Renter’s/Auto & Umbrella will total $2M.


    • Maintain Medical, Dental & Vision insurance until age 65 (Medicare).

    • Maintain 2018 HSA account at $5,900 (+$1,000 employer contribution) and allow interest to compound i.e. not spend on healthcare.

    • Save all healthcare receipts in a folder for future withdrawals.


    • Maintain $1M/$3M malpractice as long as (husband) practices.

    • Establish 6 month’s of Emergency Fund (goal $60k) by September 2018 in a high-yield savings account.

    • Maintain collision/comprehensive insurance on vehicles.

  • #2
    Very detailed post and congrats for taking action - Sometimes, it's just a matter of taking the first step!

    With regard to the life insurance, you could also look into purchasing a 25yr Term duration, as it sounds like you're only looking for 25yrs of coverage, based on your initial post and figuring? American General is also one of the only carriers who allows their Term coverage to be tailored to individual years, past year 15, meaning, you could have a 15-35yr Term policy, depending on your needs. American General is also one of the only carriers that I know of who offers a 35yr Term.

    Of course, since every situation is unique, it would also be helpful to know your ages, annual incomes, and whether or not you both work.

    Hope this helps.
    Jason P. Veirs - Life and Disability Insurance Broker located in San Diego, CA - Owner of
    Office Direct: (619) 334-2400 | Email: [email protected]


    • #3
      Thanks Jason! I edited the post to reflect the missing info   I did not know other companies do not offer tailored life insurance. I will definitely check into that. Thank you!


      • #4

        No problem! Also, sorry if I wasn't clear in my initial reply - What I meant to say is that most carriers will offer Term policies on a 10, 15, 20 and 30yr Term chassis, but there are a few carriers who offer a 25yr Term as well. It's just that 10, 15, 20 and 30yr Term are usually the most common term durations that many of the carriers offer.

        American General offers single years of coverage from any term duration beyond 15yrs (ie: 15, 16, 17, 18, etc.), all the way up to a 35yr Term. What this means, is that you are only buying the coverage length that is necessary based on your individual needs, but since you are both so young, the cost for the longer term duration will probably be negligible - You will just need to crunch numbers.

        Lastly, it's always good to over estimate on either the face amount or term length and err on the side of caution, as Term insurance is extremely affordable when you're young and healthy.

        Jason P. Veirs - Life and Disability Insurance Broker located in San Diego, CA - Owner of
        Office Direct: (619) 334-2400 | Email: [email protected]