My thoughts are similar to the OPs in many ways. We don't buy into all the "insurance" our country is so incredibly fond of these days. Both cars are paid and we keep liability (higher than legal due to our COL) and uninsured (due to our location) coverage. I've been without health insurance due to the industry and DH has been without due to unemployment. (We're both covered now, though.) DD has always been covered (by the state during unemployment and by us at all other times). DD is 9.
We have a small policy on me and a larger (but relatively small compared to others in this thread) term life policy on DH. We also have a small AD&D policy on DH (same benefit amount as term policy, but half the premium cost because it doesn't cover health-related death). The 10 year term policy ends soon and we'll be deciding how we wish to proceed. We chose to cover our mortgage and cremation costs (our preference) and a few months income, which becomes more months as the mortgage shrinks. We also choose to save through a variety of investments (highest percentage is very safe) and have a year's worth of expenses in those accounts. We have additional funds, also, and excellent credit. Without a mortgage, all those funds would last several years, especially since those expenses are based on a family of three. Without me, DH & DD would have my retirement account (over a year's worth of expenses today). Without DH, DD & I would have his retirement account (about a year's worth of expenses today). Both of those retirement funds would be DD's if both of us were to pass, which is more than double my private university tuition.
If one or both of us were to pass, life would be different for the remaining family members. Regardless of life insurance payouts, life as you know it is going to change when a family member dies. In our case, the family we've asked to care for our child would not *need* any financial help (it is there anyway in a modest amount) and they have a large enough house, etc. Plus, if my dad were still living, he'd provide financially for DD indefinitely (and/or me, temporarily). DH's family would provide for him and/or our DD, if needed. No one in either family is rich, but everyone has reached financial maturity and handles finances well.
Try to remove the emotion from the situation and evaluate *your* situation independently of others. Do you have supportive family? What is the financial health of those family members? Do you own a home? What is the general fiscal policy for your immediate family (DH & you - savers/spenders, high/low-income earners, high/medium/no debt, etc)? Do you have any large debts that would need to be covered if one spouse were to pass (different laws govern this factor, too)? Age is also a consideration, as is genetic health.
I do recommend a life insurance policy for all parents, but I differ vastly on the benefit amount and relying solely on the insurance policy in the event of death. I believe in basic term life for low amounts and focusing on living life to the fullest and preparing for the future with a diverse approach. (Putting all financial eggs into the life insurance policy basket makes zero sense to me, especially when families struggle to put food on the table.) This advice applies to most, but not all people...everyone has something unique about their circumstances and those need to be taken into account.
[FWIW: I have a degree in finance and worked in securities, but none of the above is meant to be official financial advice. I am simply sharing my perspective since the OP & I have similar viewpoints.]
We have a small policy on me and a larger (but relatively small compared to others in this thread) term life policy on DH. We also have a small AD&D policy on DH (same benefit amount as term policy, but half the premium cost because it doesn't cover health-related death). The 10 year term policy ends soon and we'll be deciding how we wish to proceed. We chose to cover our mortgage and cremation costs (our preference) and a few months income, which becomes more months as the mortgage shrinks. We also choose to save through a variety of investments (highest percentage is very safe) and have a year's worth of expenses in those accounts. We have additional funds, also, and excellent credit. Without a mortgage, all those funds would last several years, especially since those expenses are based on a family of three. Without me, DH & DD would have my retirement account (over a year's worth of expenses today). Without DH, DD & I would have his retirement account (about a year's worth of expenses today). Both of those retirement funds would be DD's if both of us were to pass, which is more than double my private university tuition.
If one or both of us were to pass, life would be different for the remaining family members. Regardless of life insurance payouts, life as you know it is going to change when a family member dies. In our case, the family we've asked to care for our child would not *need* any financial help (it is there anyway in a modest amount) and they have a large enough house, etc. Plus, if my dad were still living, he'd provide financially for DD indefinitely (and/or me, temporarily). DH's family would provide for him and/or our DD, if needed. No one in either family is rich, but everyone has reached financial maturity and handles finances well.
Try to remove the emotion from the situation and evaluate *your* situation independently of others. Do you have supportive family? What is the financial health of those family members? Do you own a home? What is the general fiscal policy for your immediate family (DH & you - savers/spenders, high/low-income earners, high/medium/no debt, etc)? Do you have any large debts that would need to be covered if one spouse were to pass (different laws govern this factor, too)? Age is also a consideration, as is genetic health.
I do recommend a life insurance policy for all parents, but I differ vastly on the benefit amount and relying solely on the insurance policy in the event of death. I believe in basic term life for low amounts and focusing on living life to the fullest and preparing for the future with a diverse approach. (Putting all financial eggs into the life insurance policy basket makes zero sense to me, especially when families struggle to put food on the table.) This advice applies to most, but not all people...everyone has something unique about their circumstances and those need to be taken into account.
[FWIW: I have a degree in finance and worked in securities, but none of the above is meant to be official financial advice. I am simply sharing my perspective since the OP & I have similar viewpoints.]
DH and I have worked outside our country (Canada) since leaving university so we have never really contributed to any governmental security/persion plan, and therefore are not eligible. We have investments and savings because of this.
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If you're thinking you might have more kids, then he could easily be mid-50's by the time the youngest is completely our on their own.
