How Many Years?

How Many Years?
Protect your family with an appropriate insurance policy while saving and wealth building toward a self-insured future. (RetroClipArt/Shutterstock)
Dave Ramsey
9/28/2022
Updated:
9/28/2022

Dear Dave,

My husband and I are debt-free. We are in our mid-20s, we also have a full emergency fund, and we each have 401(k) plans with our employers. Currently, we are looking at life insurance. We do not plan on having children, so what length term policies would you suggest for a couple in our situation?

—Ashlie

Dear Ashlie,

I would recommend you both find good 15- or 20-year, level term policies, with coverage amounts of 10 to 12 times your individual incomes. If you two have a change of heart and decide you want kids later, I would recommend converting those to 30-year term policies, still at 10 to 12 times your incomes. Why? You would want the insurance to be there to protect everyone in the family until the kids are out on their own.

Between now and then, and in the years after, your continued saving and wealth building will lead you to a place where you guys are self-insured. And that’s a great place to be!

—Dave

Dave Ramsey is CEO of Ramsey Solutions, host of "The Dave Ramsey Show," and author of best-sellers including “The Total Money Makeover.” Follow Dave at DaveRamsey.com and on Twitter @DaveRamsey.
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