Quora Answer: What Net Worth Should I be to Start Looking at Additional Life Insurance?

The following is my answer to a Quora question: “At what net worth should I start looking at buying additional life insurance policies?”

This really depends on many factors.  You need to take a look at your existing coverage, and your current financial obligations and liabilities.  From decide, you need to decide if, in the event of your untimely demise, whether that coverage is sufficient to cover all your obligations and liabilities.  Assuming you have a spouse and dependents, how long will it take for your spouse and the family to adjust their lifestyle, and how drastic is that change?

Aside from death, critical illness and disability actually cost more.  Death is a one-time event.  But a disabled or critically ill you may mean that the family loses more than just your income.  Someone might have to quit to look after you.  Adjustments may need to be done to your home.  You will linger on, a burden for years before death.  This is why you need critical illness and disability coverage.

In essence, as long as you feel you can afford it, and there are viable options, take that additional coverage.  It gets more expensive as you get older due to the increased mortality charges.