We looked at what would make it possible for the surviving parent to get by. For us – that was a paid off house.
So we got term for the amount we owed on the house for each of us. We got 10 year term because we had a plan in place to pay off the house w/in 10 years. Our term is about to expire (and we owe very little on the house and will lump sum payoff the house on my birthday this year.)
Other folks look at different aspects – folks in retirement age might look at pension/ss hits if the person dies. If you have 2 earners SS – the surviving spouse will get the higher of the 2 SSs – but if they need BOTH to survive – then term insurance is needed to make up for the budget shortfall. Same idea with pensions – if there’s no joint survivorship option on a pension – you can cover this with life insurance.
You’ll have to look at your own situation and needs.
