Term life insurance

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Let's talk for a minute about term life insurance.

Term life insurance is basically a bet that you're going to die.

It's kind of morbid to think of it that way, but that's really what you're doing.

You're putting a little bit of money down so that if you do die, your beneficiary gets a whole lot of money.

Now, it's a term life insurance policy, meaning you have to actually die during the term.

And you might buy a policy for one year or five years or 10 or 20 or 30 years.

But that's basically the bet you're making is that I'm going to die in this time period.

We have two children, so a couple 529 accounts, and our mortgage is $2,500 a month.

So we have a 30-year term life insurance plan for each of us of $500,000 that costs about $100 per month.

Our insurance advisor suggests us increasing that amount of money from $500,000 each to a million each, and that will now be $250 a month.

So my question is, would it be smarter to keep our term life insurance policy the same at $500,000 each or to increase it to a million dollars each and then take that 250? Or if we kept it at where it is, do we then maybe take that 250 a month difference and invest it somewhere in a brokerage account? How should we be thinking about our term life insurance from a holistic picture? Great, great question, Aubrey.

Robert, I'll let you kick this one off.

Yeah, I wish we knew the ages here for her and her husband because it's hard for us to do the real granular math to see which way is better.

that? It's a good question.

You know, I'm kind of torn because they have about $450,000 right now between their retirement accounts, savings accounts, all the stuff that they had kind of laid out, which means that they're getting relatively close to being able to like self-insure.