All Life Insurance Tips - Life insurance needs- 32 married with 2 kids?

Life insurance needs- 32 married with 2 kids?

Shopping for life insurance is confusing. I'm 32, my wife is 30 and have 2 kids, ones 2 and the other is 4. All I am looking to do is protect our family if something happens to one of us. Keeping the monthly premium down is paramount. I'm thinking that both of us should just get basic 30 year term insurance policies of 10x our salary. I got some quotes and the annual premium for 30 years vs. 20 is not much (15% more per yr.) Does this sound like the normal guide lines for someone in my position??

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We have no kids, but we based our mostly on the cost of our home. If one of us bites the dust, the other gets enough to pay off the house completely, with enough to cover funeral expenses, pay any other debt off (cars) , then some more to cover any other unexpected living expenses. With kids, you need to be really prepared.
Yes, term insurance is the only type you should consider. You might want to look into reducing term with even lower premiums. It is based on the assumption that as time passes and you accumulate personal assets and investments, the need for life insurance decreases. You are wise to stay away from insurance that includes a savings feature. Those are popular with sales people because they pay higher commissions. But you get a lot less insurance for the same premium and the investment pays a small return.
I would generally recommend you have enough on a term policy to pay off your mortgage and any other debts you have, plus enough to provide tuition for college for your kids (a lot can come up in the next 30 years). Also, keep in mind that term insurance premiums are based on the age you are NOW. If you get a 20 yr policy and then decided to get another 10 at that point, then you are looking at a policy that is based on you being 52 years old instead. Opt for the longer term, but make absolutely sure that you have enough money on that policy to cover all of your debts and some more. Good luck to you!
Yes, yes, & yes. A term policy worth 10x you and your wife's income is the best way to go. Term life rates are low and very competitive right now. Stay away from whole life policies. Generally, they are more expensive and a poor investment. If you're comfortable with the extra 15% for a 30 yr term, go with it. You've hit the nail on the head. But don't wait any longer! Leaving your family unprepared if you or her were to pass will be devastating!
if you should die tomorrow can the house be paid in full (payment x # of years left) can two kids go to college (estimate 60K for each) does your wife work? Your Salary times the number of years you think she will live to (assume 80 years old) and then add 50K for those other bills and funeral expenses
Yes. But you also might want to talk to a couple of local agents, who can help you sort through what everything means. Doing it yourself means, you're relying on YOU being your own agent.
Yes, it does sound like the normal guidelines for someone in your position. Term life insurance may provide the maximum amount of protection at the lowest cost for someone in your position. It sounds like you know about term life insurance and how to lower your costs while providing the coverage you, your spouse, and your family need. If you think 30 years is the amount of time you need coverage for, then definitely consider locking in your rates now. Congratulations on your decision to protect your family. It's also good that you are getting coverage on your spouse, as well. Well done. Just remember, when your term life insurance policy expires in 30 years, you will have no coverage. Although you will probably have the money saved to pay for any final expenses. Consider getting term life isnurance that offers you the chance to renew your policy without proving insurability (no physical exam required in the future), this is called "Renewability". Also, you may want to consider "Convertibility", so that you can convert your policy into a whole life insurance policy at some point in the future.
Pretty typical...but you may want to reevaluate the 10x income based on your age....you may need more. There is a non profit site called www.life-line.org that has a great needs calculator. Another point to consider is that all of your needs may not require a 30 year term...sometimes you may be better off staggering coverage..i.e some 20 and some 30 year term that gives you hte coverage you need and save some additional money.
You are making a wise choice by going with term insurance. It is best to get a quote from an agent because he/she can answer all your questions. You should get one term policy and add a spouse rider to it and if you want, a child rider. That way the whole family is protected under one life policy. If you and your spouse were to get 2 separate life policies, you would be paying extra policy fees. So, if an agent is trying to sell more than one life policy on your family, find another company. I personally own a 30 year term insurance from Primerica Financial Services. I also open my Roth IRA through them and invest on a monthly basis. I suggest you do the same (keeping life insurance and your savings separate from each other), no matter what company you go with.
In my opinion, a 30 year term policy is smart for someone in your position. It will protect your kids until they are out of their 20's and will protect your wife against being responsible for your mortgage (assuming you have a 30 year mortgage). It's also a good idea to do 30 years because you are locking in your rate until age 52. Instead of sticking to the 10x salary (which is only a guideline) You can assess your families specific life insurance needs by going here: http://moneycentral.msn.com/investor/calcs/n_life/main.asp?pkw=PI&vendor=Paid+Inclusion This will help you determine how much you need. If you are looking for help with this, it might be helpful to speak to a local agent. You can do this by filling out the quote form located here: http://www.myinsurancequotes.net. They should know the market there well. Jared Balis http://www.utahinsurance.org