Insertnamehere

Term life is cheap. Just get at least a couple hundred thousand dollars' worth so your family is stabilized for at least a number of years.

Lucy

Okay, then do you have $1-2 M in cash and equity in other interests? If not, then please consider a whole life policy, as you will build equity in it. Term life is like buying car insurance, or sending money through Western Union-once it's gone, it's gone!

Lucy

Okay, then do you have $1-2 M in cash and equity in other interests? If not, then please consider a whole life policy, as you will build equity in it. Term life is like buying car insurance, or sending money through Western Union-once it's gone, it's gone!

Myfingershurt

Well because death is a sure thing. Nobody’s gonna live forever. Term life is a bet that insurance companies make that you won’t die before the end of the policy. While life doesn’t end unless you stop paying for it. So, no matter when you die you’re family will get paid. And unlike term life it also has a savings component that builds cash value in after tax dollars that grows tax free and can be borrowed from tax free. And you don’t even have to pay the loans back if you don’t want. The pan will just come off your death benefit. Pacific life even offers a whole life plan that after ten years of premiums you can just borrow against the death benefit to pay your premiums and build your cash value faster. It even as an option for market based plans with a risk index. Lots of people use whole/universal life policies vs. a Roth IRA because they have no income limits and if set up correctly no funding limits. Whole life is not quite the devil Dave Ramsey makes it out to be if it’s set up correctly and you commit to it.

SonicFlyer

Yes, this is called "The Infinite Banking Concept" but in my mind at least the jury is still out on in the idea.

TransWorld

Whole life is what my father had. He took out his first policy in 1947, that was three quarters of a century ago. There is plenty of data, pros and con, so it now should be your learning and making a decision. The jury is not still out. The data is there.

Andy

I don't have any insurance; I had term insurance until after I got divorced and my childrens' college expenses were covered. That is the best way to go as a saver like you and your wife.

Get a term policy. Whole life is much more expensive and life insurance is not needed once your kids graduate college because your family bills will be small. You and your wife are savers; the money you guys set aside will be more than enough to take care of her.

rickair7777

Agree that term is best when you're young.

Whole life might have value for specific situations but you should have other retirement vehicles so why would the spouse even need it then? Even most pensions have a survivor option. IMO best to use pure investment vehicles for investment, not something which is also trying to be insurance.

One consideration for pilots... if your spouse passes away, in order to keep your job you're going to need to hire full-time live-in childcare for when you're on the road. Even for high-school kids with a driver's license, you really want an adult in the house. Unless you have really accommodating relatives living nearby. That's probably $75K/year, on top of any income lost from the spouse's job so you probably need a policy on the spouse, even if she doesn't work.

Rama

Get a term policy and when that expires and you don't, look into the hybrid life and long term care policies.

FliesInSoup

Also, don't assume your life insurance policy at work will cover your "delayed" death. If you get busted up (or cancer, disease, etc.), go out on disability because of it and later succumb, your survivors are probably screwed. Your company's life insurance policy was likely terminated the moment you went out on disability - with no ability for you to continue it. And good luck finding a replacement policy at that point.