Not everyone needs life insurance—specifically healthy adolescents—but there are critical times in almost everyone’s life where life insurance plays a major role. The right time to buy life insurance will vary from person to person, and circumstance to circumstance. However, a general rule of thumb is that you need life insurance if other people depend on your income, or if you have debt that will carry on after your death.
When you invest in life insurance, you’re safeguarding your loved ones from any financial stress that they may adopt after you’re gone.
Reason 1: You’re Getting Married
Congratulations! Getting married comes with a lot of life change and there are a lot of logistical check boxes to work through before the nuptials even take place.
One of those logistical items is life insurance. When you promise “till death do us part”, you want to have financial security as part of that commitment.
Life insurance ensures financial support should one of you pass away, and it will pave the way for conversations down the road should you begin thinking about growing your family.
Reason 2: You Become Parents
If you’re becoming a first time parent, $25,000 to $50,000 in life insurance coverage could provide them with a solid foundation if you pass away. Life insurance policies should also be revisited each time you have or adopt another child to ensure there is plenty of coverage for the entire family.
Most parents choose term life insurance, as it’s typically the most affordable and the coverage period lasts until the child reaches adulthood. However, permanent life insurance is also an option, which provides coverage for your entire life.
Reason 3: You’re Supporting Aging Parents
If your parents don’t have a life insurance policy or the means to pay for their long term care or funeral expenses, you can buy life insurance for your parents yourself.
Supporting your aging parents can be a financial burden, and life insurance can help you recover money that you spend on their care or help pay for their end of life expenses such as their funeral arrangements.
You will, however, need to work with your parents to find the right coverage for their situation.
Reason 4: You’re buying a house with a mortgage
If you or your significant other passes away, mortgage payments may not be reachable with a loss of income. That’s why life insurance can be so valuable for homeowners with a mortgage.
Life ensure will help you or your partner pay off the mortgage on your home so there won’t be concern over whether or not the mortgage payments can be made.
If you already have life insurance prior to purchasing a home, your life insurance policy should be evaluated and may need to be increased.
Reason 5: You’re starting a business
Yes, life insurance protects your family but, if you’re a business owner, you need to protect more than just your family—you need to protect the business you worked so hard for as well.
If you’re a business owner, a personal life insurance policy can help replace certain employee benefits that you may not have access to, like retirement, group life insurance, or disability insurance. Personal life insurance can help with income replacement and debt protection for your beneficiaries.
Debt protection is particularly important if you took out loans to grow your business, especially if you used personal assets as collateral.
We’re Here to Protect What Matters Most
We’ll build you a personalized plan that matches both your needs and budget, and it will give you peace of mind knowing that your family will have added financial protection. Request a quote with us today.