I'm considering buying some term life - probably 20 year level term. Here's why:
My wife and I are fortunate to both have defined benefit pension plans (pays a fixed amount), and both are nearing retirement. My wife's retirement is coming up soon, so we're looking at retirement benefit options. To simplify, she can take a "full" benefit with no survivor's benefit to me if she dies first, or can take a "reduced" benefit that would pay a survivor's benefit to me.
I'm looking at term life policies with the thought that if the level premium is less than the benefit reduction that she would take to provide a survivor's benefit, we would be better off for her to take a full benefit and I would receive the life proceeds if she died, thus offsetting the loss of retirement income in that event.
We would similarly take a policy on me when I retire (for her income/asset protection).
Of course we realize that term life is an income/asset replacement only for the term of the policy, but I think that in 20 years I'll have a less active lifestyle anyway and could accept the loss of income if the life policy had lapsed at that point. And, of course, we would have enjoyed the full retirement benefit for that period.
I would appreciate any pros and cons, or any other thoughts or suggestions the folks on this forum may have.