Term life how to structure, ladder or not?

[bethellens]

@bmillerware Cost-Effective: A joint life policy rider is typically more cost-effective than purchasing separate life insurance for two people. It allows the policyholder to extend coverage to another individual, usually at a cost less than buying two separate polici

 

[bethellens]

@bmillerware How did you come up you need 3 million term life insurance

 

[bmillerware]

@bethellens 10 time current income

10k a month at 4% return which covers current expense, if one of us can’t work and take care of kids

 

[bethellens]

@bmillerware You are right and wrong at the same time. I think you need a agent to reevaluate that what you need. Let them do need approached and human life approach and see what you need really instead of estatmate number

 

[bmillerware]

@bethellens Do you mind elaborating a little bit, I m struggling to figure this out, agent basically agrees to what I say, so not much help!

 

[bethellens]

@bmillerware I mean the 10x is a normal, easy way to calculate the insurance you should have, but it doesn't mean fit what you should have. It doesn't calculate your expense, your goal, and your kid tuitions, your mortgage. You can look up human life approach and need approach. A good agent should do that for you no problem

 

[bethellens]

https://www.termlifeadvice.com/do-you-really-need-10x-your-salary-in-life-insurance/

If you’re in the market for a life insurance policy, you have probably heard that you should purchase a policy that is approximately 10 times your annual salary. While many life insurance agents and financial planners use this general rule of thumb, it is important to note that everyone’s need for life insurance is different.

 

[godlies]

@bmillerware Just request to reduce the death benefit as you needs change.

 

[anonymous_christian]

@bmillerware From what I've been told, it's slightly cheaper to ladder with multiple terms such as
10 yr 1 mill
20 yr 1 mil
30 yr 1 mil
Versus just a 30 yr, 3 mil. You'll get enough coverage for when your family will need it at less premium but less value if you die towards the end.