This is the third post as part of the Leaving Well series in which we discuss how to go about creating a plan to look after your loved ones well.
Prior to attending Financial Peace University, insurance was a boring topic that I typically did everything I could to avoid. However, the insurance lesson turned out to be my favorite lesson and I continue to learn things and find takeaway items everytime I watch it.
Rather than reinventing the wheel, here is a link to “What Is Term Life Insurance?” by Ramsey Solutions.
The only thing I would add to the above article is that you can buy multiple policies to cover different life stages. For example, if your children will be living with you for the next 10 years and you calculate you need $500k for them, and you have 20 years left of your mortgage to pay off and you need $500k for that, you don’t need to buy a $1m policy for 20 years - you may well decide to buy 1 x 20 year policy for $500k and 1 x 10 year policy for $500k.
Stick around for one more post in this series as we discuss the topic of inheritance!