How Many Years For Term Life Insurance?
Allen wants to know how to determine the length of term life insurance. Dave explains.
QUESTION: Allen on Facebook wants to know how to determine the length of term life insurance. Dave explains.
ANSWER: I buy my term life insurance from Zander Insurance. Jeff Zander is a friend of mine, and I’ve endorsed that company for about a dozen years. They’re a brokerage firm, so they shop among a gazillion different companies and get you the best price anywhere. You can do that at zanderinsurance.com very quickly and easily.
I usually say 15 to 20 years because that’s about how long people are usually going to need the life insurance. Your one-year-old will be 21 in 20 years. Where does that leave you? That leaves them in their last year of college if they’re on schedule to graduate in four years. If you’ve done other things that are financially great and you’ve saved up tons of money and you’ve gotten out of debt during that time, you should be fine with a 20-year. You may want to take out some that’s 20-year and some that’s 30-year as far as level term life insurance. The total should be about 10 times your income, and your wife should have $200,000 to $400,000 on her as a stay-at-home mom as well. If something happens to her, you have to hire Mary Poppins.