Term insurance policies are more or less “form” policies, so the terms tend to be very similar across insurers in a given state. That said, I think there’s some value in going with some of the larger firms if pricing is very similar (at the extreme, you see more complaints among marginal firms relative to their size). We used policy genius for two policies and had a great experience. Haven via Mass Mutual might also be worth pricing.
High level financial picture: ~$600k his/~$300K her income, which will likely double in next 5 years. ~$1.2m invested. Annual living expenses of ~$300k including housing and ~$200K excluding housing.
I'm considering ~$10m of coverage which would allow for a $3m home purchase in HCOL area and $250k/yr of income at a 3.5% withdrawal rate. Employer provides $2m of coverage, so I'm looking to buy an incremental $8m. I'm considering the following policy ladder to have flexibility to drop policies as savings increase (rough prices based on term4sale.com).
10-year $2m ~$400/yr
15-year $2m ~$500/yr
20-year $4m ~$1,300/yr
As some other posters have suggested, I’d consider ramping your coverage down more significantly over time (flip your ladder). If you believe you can sustain this high income, you’ll add substantially to your net worth over the next 5-10 years. The key risk you face is mortality ahead of 5-10 exceptional earning years. $10MM of coverage is not unreasonable so long as your career progresses to plan.
Statistics: Posted by Pretsler — Sun Jun 09, 2024 9:45 pm — Replies 6 — Views 376