Some background – I am military here at Miramar, about 3 weeks from my third trip to the sandbox. Just found out my wife and I finally hit the jackpot and she is pregnant.
I am mid 30’s, wife is same, our combined income is around 200K annual. I have to plan for the contingency that she may decide not to work so I consider my future income to be less than 1/2 of what it is now. About 200K in savings and mid-term investments (gold funds / tax free bond funds). Another combined 100K in Roth IRA’s for both of us. Renting a house, with no intent to buy for a couple years. My current insurance is SGLI (250K coverage) and a stupid 50K WRLOC universal life investment program that is an absolute dog. (If I had just buried the 100 bucks a month in the backyard over the last 8 years it would be worth twice as much). I will be able to retire in 5 years (regular military pension) follow on career TBD. Wife is vested for a small pension (small change right now).
So it’s obvious I need more insurance to protect my new family. My questions.
1) Should I be looking at Term / whole / universal? I admit the failed WRLOC investment has turned me off a bit to Insurance as an investment vehicle. Am I missing something – our should I be buying Term and investing for retirement elsewhere?
2) I fly jets, in combat – apparently my “risk level” is sort of high. Though I do most of my stuff thru USAA, our IRA’s are thru METLIFE, and I am considering life insurance thru them. They want to attach a $5.00 per 1,000,000 annual fee to whatever program I purchase. Thats 5K a year just to get in the door. Is this normal? Can I do better?
I know asking for investment “advice” is sort of frowned upon here – but I would like to hear your thoughts on this scenario. Anybody else would like to pitch in – I have thick skin.
