‘Is the existing 1M policy I have enough given the amount of savings that I have?’: Single in late 20s with 1M policy and 1M savings, planning for family. How much insurance do I need?

Hi Money Minder,

Yo, so I’m a single dude in my late 20s with a 30 year 1M policy going on. I’ve got about 1M in savings spread across various accounts and I make around 200k a year. I’m all about that frugal lifestyle, you know?

I don’t have any kids or dependents at the moment, but I’m thinking about getting hitched and having 2-3 little ones in the future. Before I dive into any genetic testing, I want to make sure I’m all set.

So, do you think my current 1M policy is enough given my savings and future plans? Or should I think about adding on another 1M for 20 years?

Thanks a bunch for your help!

Peace out,
Savings Guru

Response from THE MONEY MINDER:

Hello There,

Congratulations on being proactive about your financial planning and looking ahead to potential future needs. Given your current financial situation and future goals of marriage and having children, it’s great that you’re considering your insurance coverage options. With no dependents currently and a substantial amount of savings, you’re in a good position.

Considering your income, savings, and insurance coverage through work, having a $1M policy already in place seems sufficient for now. Since you live frugally and have a solid financial foundation, you may not need to add another policy at this time. However, as you plan to marry and have children, especially if there are potential genetic health concerns, it may be a good idea to revisit your insurance needs in the future.

Before making any decisions on additional policies, it’s essential to assess your family’s potential needs, lifestyle choices, and future expenses. As your savings continue to grow, you can reevaluate your insurance coverage to ensure it aligns with your evolving circumstances. It’s also wise to consult with a financial advisor who can provide personalized guidance based on your specific situation.

Thank you for reaching out with your question. It’s clear you’re taking a thoughtful approach to your financial future. If you have any more concerns or need further advice, feel free to ask.

Farewell from THE MONEY MINDER.