Money Matters
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Just Curious...Life Insurance

If your household has a stay at home parent situation, how much LI does the working outside the home spouse have?

How many kids do you have? And what are their ages?

Re: Just Curious...Life Insurance

  • I"m a stay at home mom and we just got my DH's life insurance- we went about 12 times his income (10 is what Dave Ramsey recommends, but 12 was close enough and under what we were thinking we would end up spending.) It would be more than enough for final expenses, plus living expenses for quite a while. We had to figure that way because my career before mommy was a teacher, and so I wouldn't necessarily be able to get a job right away if needed in my career path- I would have to wait until April/May to apply, but could substitute hopefully in the mean time.
    My little one is a month and a half, we are hoping to have one or two more so we went with a 20 year fixed term life insurance on my husband.
    I just got a quote for myself at 10X my working income- DH wouldn't really need the money, but it would help him take some time off, and probably pay for kids colleges hopefully.
    image
  • You can use Dave Ramsey's figure of 10x the income.

    Otherwise we are told to do 7x the income, plus the amount for all debts and any future education.  That way the spouse can pay off all debts, still live comfortably for the next 7 years on the breadwinner's income, and pay for any childrens' college tuition.

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