Why Term life insurance?

[smilee1079]

Why is this recommended? If I get it for 30 yrs., it will expire when I am 63, then what? I know it is cheaper now, but doesn't it leaveppl. Hanging later?

[giantsgirl]

Jan 2, 2013 21:14:20 GMT -5 @vicmo said:

We got life insurance to cover 4 main costs:
1) Pay off the mortgage. 30 years from now, I plan to have a paid-off mortgage.
2) Pay for daycare for our kid(s). 30 years from now, my kids better be done daycare.
3) Pay for college for our kid(s). 30 years from now, my kids will be done college.
4) Pay for time off work for a surviving spouse. 30 years from now, my H and I will both be retired.

So, by the time our term is up, we don't have any need for those funds anymore. Life insurance isn't part of our estate plan - we are saving for retirement separately.

:Y: In 30 years, I should have enough money in the bank to pay for the burrial and for 2 people to live comfortable in retirement. If something were to happen to me at that time, H won't *need* any insurance payout.

[Kore]

Generally, whole life insurance is a lot pricier than term. If you invest the difference between whole & term, you'll probably have enough to fund your own "life insurance" after 30 years. Term life insurance is intended to be in place until you're self-insured w/savings & retirement. Whole life insurance makes sense as part of an investment strategy for higher income earners, but someone else will have to weigh in there.

[savannah11]

30 years from now DH and I plan to have enough in our retirement accounts to no longer be working and live comfortably. Life insurance would not be needed.

[smilee1079]

Thanks for the explanations... Makes more sense now .

[thatgirl2478]

Jan 2, 2013 21:14:20 GMT -5 @vicmo said:

We got life insurance to cover 4 main costs:
1) Pay off the mortgage. 30 years from now, I plan to have a paid-off mortgage.
2) Pay for daycare for our kid(s). 30 years from now, my kids better be done daycare.
3) Pay for college for our kid(s). 30 years from now, my kids will be done college.
4) Pay for time off work for a surviving spouse. 30 years from now, my H and I will both be retired.

So, by the time our term is up, we don't have any need for those funds anymore. Life insurance isn't part of our estate plan - we are saving for retirement separately.

This. :Y: