Life Insurance

[NancyV227386]

Hello, I am soon going to have to make decisions on life insurance amounts for myself and my husband that will be for the time after my last child is out of the house. I was wondering what amounts of life insurance people have into retirement? I know I may not need as much as when kids were young, but it seems an amount greater than $50,000 would be good. Yet not sure if we will be able to afford the premiums once we retire?. Thoughts? thanks, Nancy

[WanjirusBits]

It's a hard question to answer without knowing what your needs are. You say the insurance is for after your last child is out of the house that can only mean it'd be for you or your spouse's benefit. You also say you might not be able to afford it after you retire, which would be a waste of your money. You may need to talk to a financial planner - there are some fee-only ones who can give you a half-an-hour consultation freebie to assess your situation.

For me, I had term insurance for the years I believed it would take me to afford to self-insure. Now, besides medical, I have no need for insurance. 

P/S Term insurance is the only one I'd buy. It's affordable especial for a much younger person.

[GailL1]

@NancyV227386 

Have no idea of your needs or your health - both will have a bearing on what the premium turns out to be.  Term is always the cheapest in premium cost. 

I had a 40-year level term policy in place until I reached the age of 73 - then I took a look at my needs at that time - no dependents, no mortgage, no debt, financially OK but don't want to spend on something unnecessary.  Insurance as an investment vehicle isn't for me.

So now I have none and that is just fine - 

You must figure out what you need - 

If a couple has a mortgage and the surviving spouse can't handle it on their own - that's an amount you need to consider.  Any other (larger) debt that cannot be liquidated to pretty much satisfy it might also be a consideration depending upon which part of the couple ( or how their estate) is held liable.  

But ya gotta be able to afford the premiums or get rid of these debts before retirement.  Nobody should really retire with a mortgage.  

The need for life insurance is only one part of a financial picture.  You don't want to be worth more dead than alive.

So what would be the "need" aspect of the life insurance?