I’m also comfortable being on the low side of the insurance range.
Both my husband and I work. Our only debt is our house. Our retirement funds and 529’s are pretty well funded. Our thought was that if the survivor didn’t have the mortgage to worry about – they could afford to maintain the household (including daycare/after school care expenses) on a single income. We took our mortgage debt (which is our total debt) and added $100k.
So called experts and calculators have told me I needed insurance to pay off my house – when I was single with no kids. I laughed and said that my parents could sell it and my cats would have to fend for themselves. Why pay off my house if I was dead and no longer needed to live in it.
We’ll drop insurance when the house is paid for.
In the meantime – the money we’re saving by having smaller policies is going into the kids college funds.
Congrats on the pregnancy/growing family! Parenthood is pretty darn fulfilling.
