Why I Am Buying a $500,000 Term Life insurance Policy

To encounter a 20 year-old that gets the importance of buying life insurance, is pretty much an anomaly.

To find one that feels they need to buy a $500,000 term life insurance policy is just insane.

I’m proud to say this is the young man that I hired.

Tyler Ramsey, an investment advisor with my firm, shares the importance of why he bought life insurance for his family.

A term life insurance policy is a great way to protect your family.

In the event that something were to happen to me having a term policy in place gives me some comfort knowing that my wife will have money to take care of our mortgage, bills, and have some protection for her.

My wife and I bought our first home early in our marriage.

To protect ourselves if something were to happen to one of us we took out a $250,000 term policy on each other.

Fast forward 4 years and we are planning on starting our family very soon.

This made me start thinking,

“Is $250,000 enough to cover my wife and our future child?”

Sure she would have enough to take care of all our bills and debts, but would it be enough to take care of them while my wife took off work to raise our child? Not to mention the rising cost of a college degree is not something that I would want my wife and child to struggle with in the future.

This lead me to getting a $500,000 30 year term life insurance policy. I am a 25 year old, non smoker, in good health, so my premium for this amount is $360 a year.

Editor’s note: It’s a good thing Tyler isn’t a smoker. Life insurance rates for smokers increases drastically!

This is a small price to pay knowing that my wife and child would be taken care of in my absence.

This amount is a good starter for my family. In the future we planning on having more kids, so at that time we may need to reevaluate how much protection we need.

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