Life Insurance Suggestions

I am 65 and my wife is 63. We have no life insurance now. The Annual Suggestions portion of our report indicates a recommendation of Life Insurance for me in annual amounts beginning in 2018 for $56K, rising each year to 2023 at $153K and then declining till my presumed death in 2041 to $10K.

I assume these are benefit amounts that would allow my wife to maintain the desired standard of living should I die "prematurely", correct?

Can you offer any advice on how to put this advice into action at my age? Is it really practical to initiate a different term life plan every year, and is there even such a thing as 1-year term plans? Everything I see are 10-year or more.

Comments

dan royer's picture

You are right, it's not practical to buy a different amount of insurance for each year. So you really look at 5-year or 10-year policies. But before taking action investigate further. It's good to get some sense of why the insurance is needed. For example, do you have a pension that does not have a survivor benefit? But also, look at contingent planning, and consider for example (I'm just making this up), the survivor would downsize a home and thus provide some influx a money and thus reduce the amount of term insurance needed. In other words, there are contingencies that, if you take certain contingent actions, might mean you don't need any insurance.

I hope that makes sense.

Dan