Thinking about our own mortality is rarely a pleasant experience. However, there are moments in your life when contemplating the inevitable becomes necessary. Pondering your untimely passing is not so much about you, but those you leave behind. The unexpected loss could have significant financial consequences and life insurance is often the most economical financial instrument to protect those you love.
Times When Life Insurance is Needed Most
The following scenarios are instances when having life insurance is most critical to ensuring your loved ones’ financial security.
You Generate Income
If your family depends on your ability to earn an income to help pay for the mortgage, utilities, food, tuition, and so on, you need life insurance. It doesn’t matter if you are the breadwinner or not. If your sudden loss would significantly impact your family’s standard of living, you need life insurance.
You Are a Stay-at-Home Partner
Individuals who may not earn an income, but who contribute to the family by caring for children or loved ones, would have an economic impact to their family in the event they suddenly passed away. If the ability to continue earning income or the cost to replace the value you provide is significant, you need life insurance.
You Have Children
The cost of rearing children is increasing every year. While it may be feasible to provide for your children if the other parent passes away, consider those things that may be pushed aside due to a shift in your financial situation. College tuition, wedding plans, and extracurricular activities are often forgone after the loss of a parent who doesn’t have life insurance.
You Have a Child/Adult with Special Needs
Children with special needs may require financial assistance throughout their entire lives. It is not uncommon for special needs adults to outlive their parents. Life insurance, either purchased individually or in the form of survivorship coverage where both parents are insured, can provide the financial means to provide necessary financial support.
You Have Co-signed Loans
If you have co-signed on a loan, you may want to consider the other financially liable individual to purchase life insurance. Larger loans such as mortgages and private school loans may place a financial hardship on a co-signer should the other individual pass away.
You Don’t Have Adequate Savings
Adults who have not saved enough for their retirement and final expenses will want to consider purchasing a life insurance policy. If married, the funds can be used to replace pensions and social security payments of the deceased partners. Additionally, the benefit can also pay for unpaid medical bills, funeral costs, and unpaid debts.
Do any of the above apply to you?
Contact our office today to review your situation and determine if adding life insurance coverage would be a good move for you and the people you care about.
