Rachel Cruze

My wife and I are 35 years old with no children yet.

We are on baby step seven and have $750,000 in retirement and a half a million dollar home with a balance owed of 250,000.

Okay, so you're not on baby step seven quite yet.

I hear you talk about having enough life insurance to replace our income, but my current income is $375,000 and my wife's is $100,000.

With no debt, is it really necessary to have insurance in place before we have children?

Well, again, life insurance is there to replace your income and you guys are living, I don't know, lifestyle wise.

I mean, you're close to half a million making that per year.

And so I would consider you self-insured once the home is, if the home is paid off, that feels self-insured to me.

But if something were to happen to you and your wife was making a hundred grand,

Would she be okay with the mortgage?

Could she pay all of that and be self-sufficient?

So I like the idea of still having 10 to 12 times your annual income for a buffer.

And if you guys are both healthy at 35, Winston and I just redid our life insurance probably two years ago.

And we did term life with Xander.

And it's just so inexpensive that a part of me is like...

Just do it now.

And then once the house is paid off, then you guys can have that discussion.

But it's so inexpensive.

Yeah, I would definitely still keep it because, again, if something happened to you, your wife makes $100,000, what's that stress going to be for her of having to still make that mortgage payment every month?

Because, yeah, she'd pay the house off.