Eric Schaefer, Financial Advisor
There are a few ways of guaging what level of life insruance is appropriate. Having gathered considerable assets already, this may partially reduce the amount of insurance you need.
Most families purchase life insurance as a means of replacing lost income. If you plan to work another 25 years, this might be measured as 25x your net-of-tax take home pay. Families will also purchase life insurance to meet certain goals, such as paying off a mortgage, leaving an inheritance to family members or to pay estate taxes in some situations.
Considering your current assets, it might make sense to sit down and look at your current fixed and variable expenses on an annual basis. If one of you passes away, how long will your savings "fill the gap" between your spouse's income and those expenses? Do you have other goals beyond maintaining your standard of living?
It may benefit you to sit down with a financial planner or insurance professional to review your situation. While it is never a fun topic to discuss, the conversation could prove very valuable should something happen to your spouse or you in the future.
Francisco Ramirez, President, Insuringmyself.com LLC
It's great to have accumulated assets but you have to assess the needs of your partner and the loss of income should one of the two of you pass away. What dreams or desires will be curtailed?
Are there organizations that you care deeply enough to provide them with a legacy gift? Are there other family members such as nieces or nephews that you would like to assist?
Do you want to safely stash some money away for retirement?
I'm sure others can chime in here with other reasons.
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