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When do I need life insurance and what for?
Children
You
need life insurance either you are pregnant, planning to get pregnant, or a
new parent. Generally, the financial burden arrives before the baby does. In
order to protect your child’s future financial stability, life insurance
will be the most significant purchase.
Just Got Married
Married couples divide financial responsibilities. It is essential that the
couple sits down to build a firm financial plan that involves life insurance
after the honeymoon. It is important to check that each of you have enough
life insurance to cover the loss of your partner’s financial contributions
if one of you were to pass away unexpectedly.
First Time Home Buyer or Second, Third...
To
cover mortgage is one of the important reasons as for people to buy life
insurance. Does your family have the capability of paying off mortgage if
you die today? Or to cover other home related expenses such as utilities,
property taxes, and maintenance. The right life insurance will assure to
keep the house you bought together.
Dealing with Debt
Having debt is one of the major reasons to have life insurance. You need a
life insurance plan that will cover outstanding balances for old, new or
upcoming debt, especially if your partner takes a share on a loan, credit
card, etc. Make sure to include a secure debt management and life insurance
in your future financial plan.
Development
As your income rises, you’re spending habits increases as well. By adding
life insurance coverage, it will help your family to maintain new financial
status and standard of living. However, let’s not forget, experts advise to
have a life insurance policy that is 10 – 20 times your annual salary.
For Attending Parents
If you are supporting your aging parents financially, would they be able to
survive if you died unexpectedly? Make sure to plan their expenses, such as
cost of healthcare, housing, or long term care, into the final amount of
your life insurance policy in order to affirm that they will be taken care
of.
Adjustment of Business
It is essential to reevaluate your life insurance coverage every time your
business alterations because life insurance can protect your business. For
example, becoming more profitable, hiring employees, or acquiring more debt.
Marital Status
You perhaps may need to make changes on your life insurance coverage if you
lost a partner through death or divorce. However, if there are children,
they should be your priority as to making financial plans. Therefore, you
should always confirm that your children are financially secure before
making any changes in your life insurance. Also, if you have been remarried,
it is essential to make proper changes for your life insurance beneficiary
that will also satisfy your new partner’s financial standards.
Going Off to College
Life insurance can be considered as a risk management strategy to
thoughtfully plan your children’s college arrangements. So your children
will be financially safe to provide them with the cost of housing, tuition,
books, etc, if you are not around to do so.
Retirement Plans
A well planned life insurance will provide sufficient financial support for your family as they might not be able to rely solely on your retirement savings. This is why life insurance should be an enormous part of your overall retirement plan. If you do not have life insurance as a part of your retirement plan, your plan will only just be a savings plan that terminates or becomes disabled when you do.
