Term life insurance - sanity check

Hi guys

I would say I am just looking for a sanity check here…

I ran through several of the calculators for term life insurance (over 40 www.insurancehero.org.uk/types/life-insurance-over-40.html) and get back high numbers. Somewhere from £500K to “You don’t need life insurance”.

I reckon lots of theses calculators mainly focus on just paying off the mortgage and providing some additional income…

My situation essentially boils down to the following: My wife and I have stable jobs and we make enough money individually to support ourselves and our family
Our current retirement accounts/assets are in the low six figures…

Do I seem like a candidate for a six figure life insurance policy?

Hello zutiz

First post on this forum, but have been a member for a couple of years.

I had been an insurance agent here in the U.S. a few years ago, what we would suggest is calculating what your income would be for 3 to 5 years and base the policy amount on that. The belief is this is the average it would take a loved one to readjust their lives to compensate for the the financial loss.

Also, look into riders. You can have a spouse rider in that one policy covers both, if you make more the policy should be on you, your wife the rider. If she were to pass before you, you would claim the amount set by the rider thus ending the policy, and vice versa. Also another important rider, one in case of disability, should you become unable to work or earn money, this would keep the policy in effect for its duration.

You may also want to get a small whole life policy (10 to 20k), that could build cash value over time.

Most importantly, go to an insurance agent and speak face to face, this is an important decision and should not be done just on a web site. The agent is there to answer questions when buying and during policy holding.

Hope this has helped.

“Providing some additional income”, given the current extremely low level of interests rates, calls for quite a significant capital sum, perhaps?

I would think so; yes.

I would also think it would be a pretty unusual decision “to decide not to bother”? :33:

You can have a spouse rider in that one policy covers both, if you make more the policy should be on you, your wife the rider

Stable job, a good income so I was thinking for the last month for life insurance. But I got a reduction in my salary, it’s not funny, we were hard to pay for car insurance, especially we have two cars. We were thinking about looking for a cheaper, these times require you to save money… A friend of mine recommended it to me… As he said it works of you choose the right one as he did… Money Expert, 200 more you can save, it’s for sure… But about life insurance…maybe next year I will be thinking about.