WRP’s Aaron Rubin Talks Life Insurance with MoneyGeek

WRP partner Aaron Rubin was recently interviewed by MoneyGeek to provide insights into life insurance. In the featured article, Aaron discusses the differences between term and permanent life insurance policies and offers advice for assessing an individual’s life insurance needs.

Term vs. Permanent Life Insurance

Aaron explains that term life policies tend to be ideal for younger adults who are looking to ensure their families could replace their income if they die unexpectedly, allowing survivors to pay off a mortgage or provide for their children in their absence. After the term, which typically lasts 10 to 30 years, has expired, the policyholder can allow the policy to lapse or renew at a higher rate that will depend on their current age and health status. He notes that layering multiple term policies can allow families to vary their total coverage based on different financial timelines.

Permanent policies, on the other hand, have lifelong (albeit significantly higher) premium rates. They also provide the potential to build cash value, which the policyholder can take out as income, withdraw as a loan, or allow to build to increase the face value that will ultimately pass to their beneficiaries. Aaron explains that this type of policy is often used in estate and business succession planning.

The DIME Formula

When asked how to determine how much life insurance a person needs, Aaron recommended a frequently used formula known as DIME: debt, income, mortgage, and education. Here’s how it works:

  • Calculate major debts including credit card balances, student loans, auto loans, etc., and ensure your beneficiaries will be able to pay these off with a portion of the life insurance proceeds.
  • Multiply your annual after-tax income by the number of years you would need it to be replaced. Often, parents strive to replace their income until their youngest child reaches adulthood. Some couples choose to increase this amount so a surviving spouse has the option of staying home and focusing on the children after the loss of their other parent.
  • Any outstanding mortgage balance should be included so survivors will remain secure in the family home.
  • If you wish to provide for a child’s educational costs, these should also be included in the benefit amount.

    Aaron adds that it’s also important to account for final expenses, which he recommends figuring at around $20,000.


    About Aaron Rubin

Aaron Rubin is a WRP partner specializing in financial, estate, and tax planning. He particularly enjoys assisting young startup professionals navigate the complex landscape of equity compensation, helping them make tax-savvy choices that allow them to make the most out of their financial opportunities.
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About MoneyGeek:

MoneyGeek is a prominent financial information platform that offers unbiased advice and insights to help individuals make informed decisions about their finances. With a team of financial experts and researchers, MoneyGeek provides comprehensive, up-to-date information on a wide range of financial topics.


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WRP is a team of tax and financial management professionals with expertise in company-issued stock options. We use research-based investment strategies to grow and protect our clients’ investments and a personalized, one-on-one approach to understand each individual’s goals and priorities. A proud Bay Area business, we are dedicated to local philanthropy and contribute time and resources to local charities to support our community’s long-term well-being.