Life insurance — how much and what kind?
Question: My wife and I are expecting our first child. The lady we bought our auto insurance from is suggesting a whole life policy for $100,000. Is that enough coverage? Too much? Is this the right kind of policy?
Answer: A $100,000 policy should be fine, as long as you don’t plan on staying dead for long. Otherwise, you may want to reconsider.
Do some “back of the envelope” math. Suppose you now earn $40,000 in your job. Whether your wife works or not, I assume your $40,000 is pretty important to your family’s income.