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  1. #1
    Registered User Senior Member
    Posts
    240

    Stacking Term Life Insurance

    We have young kids. We want to not only save money for our retirement, but for their future. Part of our preparation to secure there future includes making sure we are properly insured.

    I know nobody likes to talk about the possibility of death. But it is part of life. And we recently looked into, and wanted to share with you what we decided to do.

    Both of our kids are under five. Both my husband and I are in our early 30s. And we both work. So we figured we needed to make sure we had the equivalent of both of our salaries at least until the girls were 20, or 15 years from now. And maybe less after that. But since we are saving along the way, we may not need as much insurance in 10 years as today. So we went with stacking term life insurance policies. I'll describe what I mean.

    (We both make about the same amount of money and our future salary prospects are similar, so our policies are mirrors of each others. Yours may differ if one spouse makes more than the other. But this is an example, and an insurance agent can help you properly structure your policies.)

    We took out fairly large 15 year term policies for both of us. This is the money we will need to support our family and get our kids through college.

    Additionally, we took out smaller 30 year term policies for both of us as well. This is to help one spouse maintain our current lifestyle in case the other spouse passes, and will carry us until near retirement age.

    Based on the pricing we received for our policies, there is no excuse for you not to take out term insurance to make sure your family is provided for. I am sorry we waited this long to look into it. And I feel a whole lot better now that it is done.


  2. Stacking Term Life Insurance
  3. #2
    Registered User Pro Member
    Posts
    554
    This was offered to us as well. It also makes sense to help lower your premiums. But the downside risk is you don't save enough and then after the first policy expires one of you passes. Then you end up being underinsured. So we went with larger 30 year policies.

  4. #3
    Registered User Enthusiast
    Posts
    76
    I think life insurance is definitely in the category of things we should take care of, but just want to avoid thinking about. Thanks for encouraging me to think about it.

  5. #4
    Registered User Senior Member
    Posts
    101
    Aren't you concerned about the financial stability of insurance companies and whether they will be around to pay off your policies, if ever needed?

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