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I'm looking into buying term life insurance and was would appreciate any sort of feedback in terms of suggestions as to how much to purchase and from where. My background...
I am a 29yo male second year resident married to a physician assistant. I already have disability insurance but am looking to purchase life insurance now that I just found out a few weeks ago that my wife is pregnant (both excited and nervous). I currently make ~50k a year and my wife ~100k and our expenses are quite low (live like a resident). However, some of that will change when our baby is born next November. She will likely cut down to part time and our expenses will undoubtedly go up (nursery, we actually need to buy a car, other child expenses, etc...). At this point I don't plan on doing a fellowship so I will likely be making "attending level" salary of >350k in about 2.5 years. She will likely continue working but only at part time.
Our current combined financial situation:
~150k in retirement savings (all in tax protected accounts)
18k emergency fund
110k in student debt (which my wife is not responsible for if I were to die)
No mortgage or any other debt obligations
We are also expecting an inheritance of ~150k within the next year
We are generally pretty frugal and will never live extravagantly, but our as we purchase a house, move back home, and have more children (2-3) our expenses will certainly go up. I am only interested in term life insurance and just trying to decide on how much to purchase. The hope is to make a single purchase now while I'm young and healthy (no comorbidities currently) so that I never have to buy another policy again. I plan to run the numbers to see what makes sense but I was thinking of doing something along the lines of a $1 million dollar 10 year policy as well as another $1 million dollar 20 year policy. That way, if I were to tragically die in the next few years, she would get $2 million dollars but after a 10 year period our finances will likely be much better and $1 million dollars should be enough. I was thinking of only keeping it at 20 years (and not 30) because my hope is to be financially independent before twenty years and it would also save on some of the premiums. Questions...
-Is this reasonable or would you suggest something else? More coverage, less coverage, only do one policy, stack the policies differently?
-Are there any suggestions for websites to run sample numbers through to get estimates? The insurance salesman I bought my disability policy through was very knowledgeable and I will likely go through him again, but I like to do my own due diligence beforehand.
-Any companies historically provide the best rate?
-Finally, does it make sense to get a very small policy for my wife...such as 250k for 5 years. That way if anything were to happen to her, I would at least have some financial means to support a family until I start making an attending salary.
Any and all thoughts would be greatly appreciated.
I am a 29yo male second year resident married to a physician assistant. I already have disability insurance but am looking to purchase life insurance now that I just found out a few weeks ago that my wife is pregnant (both excited and nervous). I currently make ~50k a year and my wife ~100k and our expenses are quite low (live like a resident). However, some of that will change when our baby is born next November. She will likely cut down to part time and our expenses will undoubtedly go up (nursery, we actually need to buy a car, other child expenses, etc...). At this point I don't plan on doing a fellowship so I will likely be making "attending level" salary of >350k in about 2.5 years. She will likely continue working but only at part time.
Our current combined financial situation:
~150k in retirement savings (all in tax protected accounts)
18k emergency fund
110k in student debt (which my wife is not responsible for if I were to die)
No mortgage or any other debt obligations
We are also expecting an inheritance of ~150k within the next year
We are generally pretty frugal and will never live extravagantly, but our as we purchase a house, move back home, and have more children (2-3) our expenses will certainly go up. I am only interested in term life insurance and just trying to decide on how much to purchase. The hope is to make a single purchase now while I'm young and healthy (no comorbidities currently) so that I never have to buy another policy again. I plan to run the numbers to see what makes sense but I was thinking of doing something along the lines of a $1 million dollar 10 year policy as well as another $1 million dollar 20 year policy. That way, if I were to tragically die in the next few years, she would get $2 million dollars but after a 10 year period our finances will likely be much better and $1 million dollars should be enough. I was thinking of only keeping it at 20 years (and not 30) because my hope is to be financially independent before twenty years and it would also save on some of the premiums. Questions...
-Is this reasonable or would you suggest something else? More coverage, less coverage, only do one policy, stack the policies differently?
-Are there any suggestions for websites to run sample numbers through to get estimates? The insurance salesman I bought my disability policy through was very knowledgeable and I will likely go through him again, but I like to do my own due diligence beforehand.
-Any companies historically provide the best rate?
-Finally, does it make sense to get a very small policy for my wife...such as 250k for 5 years. That way if anything were to happen to her, I would at least have some financial means to support a family until I start making an attending salary.
Any and all thoughts would be greatly appreciated.
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