The fact is, you need life insurance if you think you will leave financial obligations behind when you die. Family obligations create financial obligations. Life insurance benefits can provide food and shelter for children and other dependents.
When you marry
Married couples with no children still need life insurance, even if both spouses contribute equally to the household income. The death of either spouse would not be financially catastrophic; the other could presumably survive on his or her own income, however, it could be a strain. Perhaps the survivor couldn’t afford the mortgage or rent payments on a single income, or maybe there are large credit card debts. Additionally, keep in mind, there would be funeral costs.
Bottom line: each should probably buy a modest amount of life insurance to protect the other.
When you have a child
A one-income family with young children is the classic high-need situation. In this case, the entire family is dependent on one breadwinner for their total support, so insurance on that life is vital. And if the nonearning spouse should die, the other would have to pay for child care — a very expensive proposition that argues for insurance on both lives.
This same high-need situation exists for dual-income households with children, for single parents, and for those caring for elderly parents who have limited resources of their own.
Bottom line: life insurance is essential.
The golden years and beyond
The kids have grown and are making it on their own. The nest is empty. At this stage in life, the there may be considerable assets that can be used to generate a good income after death. In certain circumstances like this, a life insurance policy may not need to be as robust as it once was.
The one caveat here is estate planning. If an estate is large enough to be subject to the estate-tax when upon death, heirs can use the death benefit to pay the IRS. If the policy is held by a trust, the benefit would not be counted as part of the estate.
Bottom line: hold on to coverage indefinitely.
Call Jeff Pennington today at 1-877-221-6198 and let him help you make the best choice for your disability insurance policy. It helps to have an expert on your side to get the best rates and policy available from the right insurance provider.