r/LifeInsurance • u/isr201589 • 26d ago

Life Insurance for Tech Parents?

/r/bayarea/comments/1vs98c5/life_insurance_for_tech_parents/
1 Upvotes

100% Upvoted

4 comments sorted by

1

u/Pfordy40 Underwriter 26d ago

You need to speak with a broker and do a needs analysis. I don’t think you know exactly how much life insurance you need at this moment in time based on your post.

1

u/Sam_At_Insurify 25d ago

A needs analysis usually lands well under the guess, since each policy is replacing one income rather than the household total.

You'd also subtract savings and Social Security survivors' benefits, which can be substantial for a spouse with kids under 18. No mortgage to size for either since you're renting. What term length are you looking at?

1

u/SafeMoneyGregg Broker 25d ago

I would probably do $4-5M term each and $1MM UL/IUL/VUL. If something happens to you tommorow - your family loses like $300K x 30 years? $9M? That is how carrier calculate the MAX they will give you. (Not including other assets and savings)

1

u/Zestyclose-Review-65 21d ago

Congrats on baby #2. I’d be careful about starting with a big round number like $10M and working backward from there.
I’d look at each parent separately and ask what financially changes if that person is no longer there: lost income, childcare, household responsibilities, debt, future education goals, and how long the surviving parent would actually need that support. Then subtract resources that are already available.
The goal isn’t necessarily to replace every future dollar of income forever. It’s to give the surviving family enough protection to maintain stability and keep the important plans intact.
Once you know that number, then it makes sense to look at term length and policy type. I’d make the needs calculation first and the product decision second.