When Do You Really Need Life Insurance?
May 17, 2017
It’s not often we quote classic 80’s movies, but in this case, we’ll make an exception. Ferris Bueller said it best when he mused, “Life moves pretty fast. If you don't stop and look around once in awhile, you could miss it.” We tend to overlook the key moments in our lives when we should be evaluating what is truly important to us. Think of those who may depend on you financially and realize that it’s crucial to secure their future sooner rather than later. Here are key moments in life when you NEED life insurance:
Marriage - When you’re married, finances typically get combined and you enjoy a merged income. If something were to happen to you or your spouse, the household income would suffer. Life insurance can supplement that income for your loved ones to continue their standard of living and help pay for funeral expenses.
Children - Besides budgeting for diapers, daycare, and saving up for college, you should reevaluate your life insurance coverage when you start to have children. For each child, you should calculate their future college tuition into your death benefit. Don’t forget to include the price of books and lodging into your calculations.
Buying a Home - Purchasing a new home for your growing family provides them with comfort and security. However, if the unthinkable happens and you pass away, would your spouse be able to make mortgage payments on their sole income? Most likely not. Having an insurance policy in place that can assist them in paying the mortgage will allow your loved ones to not be burdened.
50th Birthday - If you’re not too far from hitting the big Five-O, then looking into life insurance with long term care benefits is wise. About 63% of adults age 65 will require long term care services. Plus, the number of people who will need long term care is projected to double by 2030. Having a life insurance policy that is designed to cover long term care in the future is worth exploring during this milestone.