When Do We Stop?
At what point does Herschel need to knock off buying the term life insurance?
QUESTION: Herchel is about to turn 64 and works part-time. His wife makes $140,000 a year. At what point do you stop buying term life insurance? They have $500,000 in savings and the house is paid for. He has a couple of car loans that total $30,000.
ANSWER: Clean up this car debt, but the rest of it, you’re in great shape. As far as life insurance goes, you ask how life would be for your spouse if you died with no life insurance. Your wife would be in pretty good shape. If something happened to you, she’d be fine. If something happened to her, you’d have $500,000 and a paid-for house.
If you want to spend a couple thousand a year to buy some more term life insurance for a few more years while you keep growing your savings and pay off the cars, then that’s good.