"Buy term & invest the difference" - sorry, couldn't resist but this might be actually applicable here?
I believe the purpose behind life insurance is to pay off debts and ensure income for the surviving family. You have no current debt but obviously future debt such as funeral, school for kids, and replacement income.
Being debt free @ 32, I assume you have high income/low expenses and thus I would suggest the following middle ground.
1. Buy Term life for XX years - the critical assumption is that this costs much less than Whole Life
2. Between now & then, continue to invest until you have a sizable net asset base that the family can survive without you for a period of time - this magicially works out to the period of XX years of course
3. Once XX years is complete, the Term Insurance expires, you have more savings than otherwise and you have the additional cash flow that had went to Term.
Of course if you can't save money, Whole Life would be better I think - but that's not you I assume.
I think the No-Life-Insurance-invest-instead is too risky. You just KNOW as soon as you plan to do this, something is going to happen. You'll be lucky to get a pine box then
)
[disclosure] My Life Insurance is through work so file this under 'thoughts', not 'advice'. Through work was cheap so it was an easy decision. When I get 'wacked' from work (no-one retires anymore from my industry), I don't plan to get Life Insurance as I think I have enough assets to cover my family if I die sooner than later. LTD/Critical care is another matter though and IS on my to-do list to investigate.
I believe the purpose behind life insurance is to pay off debts and ensure income for the surviving family. You have no current debt but obviously future debt such as funeral, school for kids, and replacement income.
Being debt free @ 32, I assume you have high income/low expenses and thus I would suggest the following middle ground.
1. Buy Term life for XX years - the critical assumption is that this costs much less than Whole Life
2. Between now & then, continue to invest until you have a sizable net asset base that the family can survive without you for a period of time - this magicially works out to the period of XX years of course
3. Once XX years is complete, the Term Insurance expires, you have more savings than otherwise and you have the additional cash flow that had went to Term.
Of course if you can't save money, Whole Life would be better I think - but that's not you I assume.
I think the No-Life-Insurance-invest-instead is too risky. You just KNOW as soon as you plan to do this, something is going to happen. You'll be lucky to get a pine box then
)[disclosure] My Life Insurance is through work so file this under 'thoughts', not 'advice'. Through work was cheap so it was an easy decision. When I get 'wacked' from work (no-one retires anymore from my industry), I don't plan to get Life Insurance as I think I have enough assets to cover my family if I die sooner than later. LTD/Critical care is another matter though and IS on my to-do list to investigate.
