Who needs life insurance?
Some of the most common questions people ask themselves regarding life insurance include:
- Do I need life insurance?
- How much life insurance do I need?
- What age should I get life insurance?
- Do I have enough coverage for my family if I die?
The truth about life insurance is that you should always have something to protect your family. If you are asking yourself if you need life insurance, then the answer is probably yes. Many factors adults of all ages need to consider when figuring out their life insurance needs include: Pay off debt, Save money for retirement, and Provide income your family will lose if you suddenly pass away.
Leaving your debts for others to pay
Any debt, especially mortgage, can create a financial hardship for those you leave behind after your death. Debt is one of the biggest factors to consider when determining the appropriate amount to have for life insurance. If you have a $300,000 mortgage, you should at least get coverage for that amount so that your loved ones don't have to worry about paying off a mortgage on their own.
Replacing lost income
Someone may be relying on your income for financial support. You might be the sole income earner for your family, so how would your income be replaced if you died? If you have children, how could your surviving spouse or partner cover the costs of needing day care or even housekeeping? The death benefit from life insurance can help replace your income after you're gone.
Providing for your family
There are events you should plan for now that might not happen until several years in the future. Maybe you'll begin saving for your kids' college education or trying to save as much as you can for your retirement. Over the next few decades, think about how much you could set aside for these expenses. If you are no longer around to make these contributions, the death benefit from life insurance can help fund these future expenses.
Work coverage may not be enough
You may have a job with an employer that sponsors group life insurance. Hopefully, you take advantage of that program, but is it enough coverage to meet your needs now and in the future? Your insurance needs may change with time, although your employer's coverage may not. Also, most employer-sponsored life insurance programs are effective only while you remain an employee. If you change jobs or are unable to work due to illness or disability, you may lose your employer's coverage. That's why it's a good idea to consider buying your own life insurance.
Cost of Coverage
Premiums for life insurance are based on many factors, including age and health. Certainly, the younger and presumably healthier you are, the less your coverage will cost. This is especially true if you are at a high risk for developing a medical condition later in life. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased.
If you are wondering if you need life insurance and would like to take to an agent today, then reach out to Peter O'Brien. He's been working with people regarding their retirement and financial planning needs for 30 years. He can help answer any questions you might have regarding life insurance coverage. Feel free to send a message to Peter to ask any questions you have, or schedule a meeting with him to help determine your next steps.