Do You Need Life Insurance?
A recent study found that about half of adults had some type of life insurance. We’re about halfway to where we need to be, but there’s also a question about how much insurance we need and what type of life insurance best suits our needs.
In most cases, life insurance is protection for other people. Often, these other people are family and loved ones. But life insurance can also protect business partners or benefit a charity, a trust, or an estate.
For the majority of us, life insurance protects our families.
In many households, an unexpected expense can force the use of credit or start a financial snowball rolling down a hill. Living expenses are higher than ever and the loss of income that accompanies the loss of a loved one can be financially devastating.
Family breadwinners need life insurance, but you might be surprised to learn that stay-at-home spouses and even students should own life insurance as well.
Think about the cost of replacing all the things a stay-at-home spouse does. Cooking, cleaning, and caring for children all have real-world costs and in the event of a loss, your household may have to replace all those services.
Even students may need life insurance in some cases. The most common case of when a student needs life insurance is when a parent or guardian has cosigned a loan for the student. In many cases, if the student dies unexpectedly, the loan becomes due, forcing the cosigner to raise the money quickly. Life insurance can help.
Only about half of the adults who should have life insurance hold a policy. But many of those policies are tied to an employer, a relationship that may or may not last forever. Typically, employer-sponsored policies don’t offer enough coverage either. Often, it’s wiser to purchase your own policy that you control and use your employer-sponsored policy as extra coverage.
Life insurance needs can be a complex topic and each household’s needs differ, but your agent or broker can guide you through your options. Getting coverage is more affordable when you’re younger and costs can increase with each passing birthday. Before your next birthday celebration, discuss your coverage needs with your agent or broker. The gift of peace of mind benefits you as well as your loved ones.