How to Money · Monday, July 13, 2026
Mandy from Eugene, Oregon, questions if her newly purchased term life insurance policies are excessive. She and her husband switched from whole life to term policies, increasing their coverage significantly but paying less monthly. Hosts Joel and Matt explained that while a '10x income' rule is a guideline, factors like lack of children and low debt could mean less coverage is needed, but also noted that the cost difference for higher coverage is often minimal.
“So thirty years from now you should be able to do that. They'll be set and you won't have as much of a need for insurance either. Because the eventual children you're planning on having will be grown and hopefully doing their own thing.”
“That is true that the ten X number is a rule of thumb. It's a helpful one, but it's not perfect, because that's what rule of thumbs are. They are guidance. They're not necessarily specifically applicable to every single person in every situation.”
“And so I don't know, spending that extra fifteen bucks a month knowing for double. The coverage right kind of seems like a deal to me.”