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Re: Two thoughts about the COVID Fall
It isn't supposed to be a lot of money. It is supposed to be enough to cover debt and expenses in case of an emergency. That is about a 1/6 of our total net worth. I have 15 more years of working but so does my spouse. That means if I die their income is still secure and this covers college, (which is mostly already covered at this point as well but the policy is a 20 year term and was designed more for the first 10 years rather than the last few years as our financial position has expectedly changed).
We are not using life insurance as a retirement plan or inheritance. We are using our salaries and good financial planning for that. Spending less on insurance meant we had more to invest in other things like retirement or shorter mortgages with less interest. To each their own but I assure you, if I die this money would be mostly insignificant in the grand scheme of things to my spouse when looking at the next 50 years of their life. 15 years ago, this money would have been a big deal.