Hello! My wife and I are looking get a term life insurance policy, and I was hoping to get some recommendations. We both do not have any serious medical conditions and are relatively healthy. We may need more medical care in the future. No history of smoking or obesity. We live in Utah currently but that may change in the upcoming years as we buy a house and start our family. We are both debt free and would to purchase a house in the next two years. I currently make around 70k and once I graduate in May 2025 I will be making around 120k. My wife is working as well but is making about 60-70k right now which will increase in the next coming months all the way up to around 120k as well. I plan on getting a term policy within the next month or so. I’m not sure what time period for the term or what amount of policy I should get. I was thinking 20 or 30 year term with 500k. Would you guys recommend this?
I would go ahead and get 1million 20 year terms each. Then as you have kids and buy a house re-evaluate. Rule of thumb is 10times your income plus enough to cover debt and mortgage.
Since term life insurance is very affordable, this rule of thumb is a good starting point. The cost difference between $500k and $1 million in coverage is like the price of a movie for two. Why not provide your family with a bigger safety net for such a small extra cost?
rules of thumb is an industry creation. pertains to nothing except helping consumers make a decision.
I recommend getting more than $500k, probably around $1-2M, especially if you think your salary will increase.
I got a quote at your age, but 10 years later, I had to adjust it because of higher income. I wish I had gotten more coverage earlier.
It’s VERY IMPORTANT to get a term policy with conversion options. More importantly, apply for a policy that has generous accelerated death benefit options.
Most policies include a terminal illness rider, which pays out if you have two years or less to live. However, a few companies also offer chronic and critical illness riders. These riders pay out during qualifying illnesses or injuries, even if you are expected to survive.
For example, a friend of mine in his mid-30s had a policy with these riders. When he was diagnosed with cancer, the policy paid him a large percentage of the death benefit. He is now healthy and cancer-free. He and his wife were able to leave their jobs to focus on his treatment and recover from chemo.
I would share the policy details, but Reddit doesn’t allow me to. I hope this helps!
If you get term insurance, make sure it’s convertible. This lets you turn it into a permanent policy without going through underwriting again. You should also consider an Indexed Universal Life (IUL) policy. It helps grow cash with tax advantages while giving you coverage. These policies often include long-term care and critical care, which are very important as you get older. Plus, you can access the cash you’ve saved, tax-advantaged. The returns can also be competitive. Here’s an IUL explainer video: https://youtu.be/v3rEL-ok4ys?si=wuTNSpP5ekhBB3eJ (Note: It’s not from my company, just useful info).
Term insurance works, but remember it’s only for a short time—10, 20, or 30 years. If you choose a 30-year term, do you expect to die at 57? If not, you’ve spent money for nothing. And if you try to get another policy at 57, it will be based on your age, and it will cost more. I recommend going for a permanent life insurance policy instead. You’re young, so you’ll get a good rate, and your wife will pay less because women are seen as lower risk. If you’re still looking, I can suggest a company that offers full living benefits, including coverage for Alzheimer’s and even a fertility rider—all at no extra cost.
You only need a 20-30 year term policy. I use John Hancock, which offers a rewards program for healthy living. You can earn a free Apple Watch, free Amazon Prime, and gift cards just for walking. Whole life insurance is often pushed by people who sell it. Remember, life insurance is not an investment product; it’s meant to protect your family if you die young. If you’re 79 and still need life insurance, it may be a sign of poor financial planning over the years.