Most adults need to have affordable life insurance. There is simply no question about it. No matter your age, your marital status or parental status, life insurance is an important safety measure to consider for you and your family's financial future. To help you find the best life insurance options available for you, review the various life scenarios below to discover how having an insurance policy in place can impact your life at any stage of the game.
Review the Following Scenarios to Determine Your Need for Life Insurance
Single, Supporting Loved Ones
Most single people typically do not consider the necessity of life insurance unless they are providing financial support for their family, or they have significant debt they are reluctant to pass on to their family members. If you have loved ones who depend upon you financially, life insurance coverage is necessary to securing their financial future in the event of an unexpected health issue or accident.
Single people should take into consideration the potential of deteriorating health and other sudden unforeseen afflictions when determining whether or not life insurance is necessary for their specific situation. The knowledge that incurred debt would end up being taken on by your loved ones, should also prompt singles to seek coverage to protect their family.
Married Couples, with or without, Children
Married couples, with or without children often find a having a life insurance policy is necessary to protect what they have worked for, so they can provide for their loved ones in the future. For richer, for poorer, in sickness and in health, life insurance is a necessary part of any financial plan. It is possible that your family’s future would alter with the sudden death of a loved one, and it’s important to plan for unforeseen situations that may affect your or your loved ones financial stability.
It is important that married couples ask themselves the following questions when determining how necessary life insurance is for them:
- Would your spouse’s income alone provide support for ongoing living expenses?
- Would your financial plans for the future be realized or diminished by your untimely death?
- Would your spouse be able to cover your final expenses (e.g., funeral costs, medical bills, taxes, household or business debts, legal fees etc.?)
Being a stay-at-home parent is an attractive option today, made especially easy with technology that allows you to stay connected anytime, anywhere. Providing around-the-clock childcare and managing the day-to-day household activities equate to valuable services that would otherwise need to be paid to support and maintain your family's quality of life. Your life insurance coverage ensures that you will be able to continue to support your family in the way you care for them today.
Raising a family on your own, as a single parent, requires you to be twice as responsible for your family’s wellbeing. Your day-to-day responsibility is to ensure that the kids are healthy, happy and performing well in school. Your long-range goals for them should include paying for college and any unexpected medical bills. This is when life insurance becomes a necessary resource to rely on. It allows your family to maintain all its advantages throughout their lifetime without compromising the day-to-day care provided to them today.
Empty Nester Free and Clear of a Mortgage
There may be a sense of financial freedom when you reach the stage in life when your children have moved away and begin supporting themselves. You may even own your home, free and clear of any mortgage payments. This is the time when you are looking forward to your near retirement. Although you are in a positive and exciting stage in life, there are compelling reasons for you to seek out life insurance. Not only does a good insurance policy provide for unexpected medical bills, it provides financial support if a spouse were to pass away suddenly. A family’s retirement plan savings and social security may not always cover living expenses to accommodate your spouse and dependents for the next 10, 20 and even 30 years.
Retired in the Golden Years
It is important to prepare for retirement by ensuring that everything regarding your estate is in order. Peace of mind during one’s retirement allows you to enjoy all the sacrifices you made in order to reach your goals. You will want to leave behind your hard earned legacy for your family. A life insurance policy allows your family to take care of estate taxes, final expenses, and other debts down the road. Additionally, the proceeds are generally income tax free and can be structured to avoid probate, mitigating further estate tax liability.
Small Business Owner
When you are your own boss, you need to be responsible for a number of things. One of those concerns is how to protect your business in the event of your death, the death of one of your business owners or key employees. There are many different policies that can benefit business owners, for example:
- Buy-Sell Agreement ensures that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. The owners assume the business interests/shares and the family gets the financial proceeds from the buy-out.
- Key Person Insurance provides owners of a business with the financial flexibility to protect their company's solvency in the event of losing a key employee or founder.
There are insurance policies available for adults, at any stage of life. Be aware, the earlier in life that you purchase life insurance, the lower your insurance rates will be. For those considering how necessary a life insurance is at their current stage in life – remember, it is best to purchase your policy as a young adult to lock in premium rates for the term of your policy. The low rate stays the same for the duration of the term, even if your health declines during your term of coverage. Don’t wait any longer, learn about the different types of Life Insurances such as Term Life and Whole Life and get a quote today!