We’re in our early 30s and well on our way to having millions, but we can’t decide how much life insurance we need

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Not many Millennials have life insurance on their mind, especially since many of them are still behind on various other financial milestones (think owning a home, having kids, and paying off that hefty student loan debt). And, not to mention, they're still way too young to be thinking about things like life insurance, right?

For many Millennials, who now have a monopoly over the 30-something age group, it's all about reaching major life milestones at their own pace. Indeed, times are tougher today than they were many decades ago, with a number of Millennials now making far less than their parents (adjusted for inflation) at the same age.

In this piece, we'll cover a couple who's not your typical Millennial. In fact, they're pulling in absurdly high six-figure annual incomes to go with a lofty retirement account and a six-figure sum in home equity.

• Buying life insurance can be a wise move, even if you're young with a high net worth.
• A low-cost term life insurance could be perfect for Millennial couples who have (or are expecting) children.

Wealthy Millennials can score cheap deals on term life insurance

That's an enviable situation for a Baby Boomer in their mid-to-late 60s, let alone a Millennial who's posting on Reddit's r/fatFIRE in search of some pointers! In any case, if you make such a massive income, life insurance only makes sense, especially if there are kids involved.

Arguably, going on the hunt for term life insurance makes a lot of sense. And given this couple is still incredibly young, a policy will be relatively affordable. Though there's a home and a big investment portfolio, which would already make for a huge inheritance, the couple seems keen on getting a good value from insurance anyway.

Indeed, the couple should consult a financial advisor before buying any term life insurance policies. However, I do think that the couple is wealthy enough not to have to bother with shopping around for life insurance. Personally, I'm not so sure it's the wisest course of action, given there's more than enough banked for the couple's future children to live on (even retire off of) upon their untimely death.

A low-cost term life insurance policy could buy peace of mind.

What would make sense, though, is if having a good term life insurance policy would help them sleep just a bit more comfortably at night, knowing that their heirs will get even more than what they've saved up. Undoubtedly, there is no right or wrong answer regarding these sorts of unique scenarios. Either way, term life insurance (10, 20, or 30 years) seems to be the way to go, not whole life insurance, which lasts a lifetime.

At the end of the day, it comes down to how much the insurance premiums will be. If you're young, as the Millennial couple is, you're going to get a better deal. However, unless having a policy in place eases their worries about the near- or somewhat distant future, I wouldn't rush into a meeting with an insurance salesperson.

In any case, the couple has more than enough time and financial flexibility to take their time before they sign any sort of dotted line. After thinking things through and shopping around for policies, a decision can be made. Until then, the couple seems set for a fat and likely early retirement.

Also, it may make sense to position the investment portfolio with yield and dividend growth in mind so that the portfolio will be able to act as a more meaningful income supplement that can cover insurance premiums and then some.

The bottom line

Given their current assets and future earnings are sky-high, I'd argue that an affordable 10- or 20-year-plan makes a lot of sense. Unforeseen mishaps can happen, and if one's lifestyle is rather lavish, a more extensive term life insurance policy could prove a solid value proposition.

I'd encourage the couple to factor in long-term plans (how many kids will be had? when will each of them retire? any businesses that'll need funding?) and how they'd impact expenses down the road so they can find the perfect policy for them.

Either way, having somewhat less extensive coverage on a term policy, I believe, makes the most sense for this couple, at least for the time being.

A Quote in Minutes

Even if you’re in a similar financial position and unsure about the exact amount of coverage needed, it’s always wise to get a quote and explore your options .

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family's needs. With affordable rates and customizable policies, life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to visit our website and learn how to get a quote in just a few minutes.

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