Comments on: How Much Life Insurance Do I Need?

By: timelessfinance

timelessfinance — Thu, 09 Feb 2012 03:12:52 +0000

Buy term for the following amount: your liabilities + 5 years avg income x dependent + winding up costs (funeral, legal fees) + bare minimum (e.g. 60k) to support your partner for a few extra years IF he or she doesn’t work and has no reasonable prospect of getting a decent job. There. No whole life, no fancy assessments. Done. Quit waxing philosophical and go buy term life insurance. Worry about insuring against long life (e.g. building a pension) rather than insuring against death; that’s where it gets complex.

By: Denise

Denise — Tue, 20 Jul 2010 20:40:49 +0000

Great article! Very interesting.

By: SavingFreak

SavingFreak — Sat, 17 Jul 2010 23:17:14 +0000

@Impulse Magazine — That’s funny, I thought the death rate was still at 100%

By: ray

ray — Mon, 05 Jul 2010 22:02:44 +0000

This is a great post on life insurance, Now I see that you have a defunct question about deciding whether you need life insurance or not. I would emphasis if you are single it is more important that you have a small policy to bury yourself.
Great stuff

By: DIY Investor

DIY Investor — Sun, 13 Jun 2010 11:17:32 +0000

Another way to look at it is as follows:
only buy term life and typically only buy it to replace necessary income (there is a use for estate planning purposes but that’s a separate issue). How much? Take $1.0 million, knock off the last zero and get $100,000. Divide by 2 and this gives 5%. $1.0 million will replace $50,000 of income.
Of course if the spouse remarries etc. this will be a bit of a windfall.

By: Impulse Magazine

Impulse Magazine — Thu, 10 Jun 2010 01:47:58 +0000

I think that life insurance is more important than ever as the death rate continues to decline