my wife and i have never carried any life insurance above and beyond what our employers carry for us, but are considering it now that we'll have a family. i've always heard that term life is the way to go, but i have never done any research into it.
i started thinking, though, at what income level does life insurance become important and at what asset level does life insurance become superfluous? that is, if i make say, 5k a year, my income would easily be covered (i assume) by welfare and social programs to my survivors in the event of my untimely death. and, if i have a cash (or otherwise liquid) stockpile of several million dollars, why would i need insurance?
this general thinking is that insurance is a vehicle to replace an income stream (or streams, in the event that my spouse would have to stop working to care for our child) in the event that i became incapacitated and unable to bring home the bacon.