Is $50,000 life insurance policy enough or should I get more (more info in details)?
I currently have a $50,000 7-yr term for $5/mo right now. I have been thinking about getting $250,000 30-yr term policy. But I don’t know if I really need it right now. I am 27 and married with no children. House is paid off and cars are paid off. I only have student loan debt which would die with me. Not sure if I should just stick with the $50K for a while or would it be better to go ahead and get the 250K?
You need to ask yourself one question. What is my intent or goal for the policy? If its to cover my funeral expenses and give my wife a few dollars then $50,000 would be enough in the next few years (before your policy expires on the 7 year term). If you plan on moving or having children anytime in the next 10 years then your current situation will not have any bearing on your decision.
Most insurance agents want you have enough to pay off credit cards, mortgages, replace about 3-5 years worth of take home income and start funding for college (depending on # of children would depend on how much you needed). You also want to determine if your trying to just bridge the gap between now and 30 years. I currently have 3 $250,000 30 year term policies. I took out the first one at 25, 32 and just now at 38. By the time I hit 55 or 60, my needs will be different and therefore the differences in ages when they started. I want to make sure my wife and kids could survive if something were to happen to me between now and 50. When I’m 50 I will have one in college and another just starting. When i’m 55 one will be out and the second one will be close to getting out. Now, keep in mind, your premium will be different at each age group as well.
You must be able to see what your future will hold for you and not your current situation. I say go with the 30 year term and then add another one in about 7-10 years based on your then current situation….Good luck.
