When Do You Need Life Insurance?
Spoiler alert: Life insurance can feel like a bummer. In fact, it’s something you probably don’t think about often – it definitely isn’t something you’re going to bring up on your next date (please don’t). But life insurance is an important part of, well, life.
Now you don’t have to go full-on adulting any time soon, but hear us out — life insurance isn’t age-based. There are certain events (whether you are 23 or 63) that will trigger whether you should purchase life insurance, or increase what you already have. A major purpose of life insurance is for it to replace your income if you unexpectedly pass away. It’s critical in situations where others depend on you for living expenses, future income (college tuition) or if family members are tasked with paying off any debt you have left behind such as student loans, credit card debt or a mortgage.
After all, having peace of mind in your financial future is a good compromise for some of the not-so-adult moments you still enjoy from time to time. (Weekend movie binge-a-thon, anyone?)
Here are several reasons to buy — or increase — a life insurance policy:
1. You are in a committed relationship or getting married.
That’s what life’s about, right? You’re floating around, wining and dining your beloved, smooching on every corner – what could be better? Nothing, really. And adding to all the warm and fuzzies that come with falling in love is the realization there’s a certain amount of selflessness that comes with being in a relationship, and that includes making sure your partner is taken care of in any unforeseen circumstances.
When others in your life depend on your income, your life insurance policy allows him or her to maintain a stable lifestyle should an unforeseen tragedy occur.
2. You’re expecting.
No, not your next online purchase, but something so much better! Children have a way of giving your life purpose, and they’re also a huge responsibility. From finances to food, to schooling and everything in between – there’s a lot to pay for. And life insurance should definitely be one of them at this point.
Your policy coverage can help with the everyday costs of raising a child through the age of 18. There’s nothing in this world that can replace a parent, but if something were to happen to you, having life insurance would ensure that the money you would have paid into their life expenses and college fund can take care of them in your absence. It can also give your child (and spouse) some financial peace of mind.
If you already have one child and are looking to expand your brood, you’ll want to increase your amount of life insurance for each new family member.
3. You’re a homeowner.
White picket fence or not, owning a home has its ups and downs – one of those being all the responsibility that comes along with it. You might be throwing the soiree of the century one evening, and then asking friends for plumber recommendations the next.
At any rate, if something terrible happened to you, life insurance could help your family members stay in the home they love while providing a familiar neighborhood for your kids – or at the very least, options of where they’d like to live.
Whew! That wasn’t so bad, was it? All the talk of unfortunate events got a little heavy, but at least you’re armed with knowledge now. And on that note – here’s a little fun fact – some life insurance policies cost less than three iced lattes a month! And since it’s Pumpkin Spice Latte season, you’re probably ordering a few more than that.
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