Most people planning for their future don’t consider the need for life insurance, but there are times when life insurance is necessary. Life insurance, much like other types of insurance, provides financial protection—instead of paying for large costs out-of-pocket, you can purchase life insurance to help offset costs, including:
After experiencing the loss of a loved one, stressing about finances isn’t an option.
Even if you find it challenging to talk about preparing for the loss of a loved one. Purchasing life insurance is necessary depending on where you are in life. The following situations highlight when you should purchase life insurance.
Purchase Life Insurance When You Have Small Children
Raising children is challenging with both parents available, but it is even more challenging when there is only one parent. Although no amount of money can replace you, having the extra money will ensure that your spouse and your children can maintain their lifestyle.
Additionally, your spouse can put money away so that your children will have enough money to pay for college. Without a life insurance policy, your spouse or your children may have to take on college loan debts to pay for their education.
Purchase Life Insurance if You Have a Mortgage
Owning a home is the American Dream. You send in your payment each month, and in a few years you can own your house. However, death can jeopardize your family’s ability to maintain the property you worked so hard to acquire, without a life insurance policy. If you own a home, you should consider purchasing a term life insurance plan to help your spouse pay off your mortgage in the event of your death.
Purchase Life Insurance if You Are Young
Life insurance is cheaper for younger individuals because they have fewer life-threatening conditions, typically. You can purchase a large life insurance policy while you are young and maintain if over the years so that when you are married with children, you have affordable coverage. You should consider purchasing a whole, term, or universal life insurance policy now so that your policy is in place years down the road when your family needs it.