@demetre It all starts with the “why” my friend.
Do you need life insurance to cover debts, a mortgage, etc? How much debt do you have?
The answer to this will give you insight into how much of a death benefit you need.
If so, how long until those debts will be cleared? The answer to that question will give you insight into how long your term will need to be.
Do you need it to replace your income? Are you the sole financial provider of your income or do you have a spouse that contributes?
If you needed it to replace all or some of your income, how many years of income replacement do you need?
The answer to this will give you insight into how much of a death benefit you need.
Whatever the answer is for face amount, add 5-10k for funeral expenses.
Most carriers have options that are a combined term/whole. For example it would be 500k for 30 years, and after that expires you’ll have 25k for the rest of your life.
I very frequently meet with couples in their 60s/70s who had Term their whole life, then it expired, now they’re worried about replacing each others income or funeral expenses and can’t afford the coverage they need because they’re old.
Keep that in mind.
You’re young enough that you’ll get really great rates that will be locked in. As inflation continues to grow, the cost of your insurance will not. These two reasons are legitimately the only reasons I might recommend whole life to someone who is younger.
I’ve always met with clients in their later years who got a whole life policy in place when they were younger and they never regret it.
In my appt process I’ll always walk through all of someone’s monthly expenses with them - so they know how much they need to keep up with monthly.
Then we’ll get conservative estimates of their take home and their spouses take home so we can roleplay a few different scenarios.
I could share that Financial Roleplay Form with you so you guys can do it yourselves.
Good luck!
