Your life insurance needs often change as you proceed through the years. Specific life stages or life-changing events that might trigger the need for new or additional life insurance policies include:
Your legal marital status changes:
- Divorce or separation
- Death of your spouse
The number of your eligible children changes:
- Birth or adoption of a child
- Child gains or loses eligibility for coverage under an insurance plan
If you’re lucky, you’ll have plenty of time to discuss and prepare for these life-changing events. Most of the time, major life changes take you completely by surprise. Either way, it’s important to make sure you are financially prepared for practically any situation.
Married or Getting Married
Many families, including ones without children, depend on two incomes to financially make ends meet. If you passed away, would your spouse have enough money to cover your funeral costs, credit card balances, and their day-to-day living expenses?
A Parent or About to Become One
Raising a child is one of the most expensive things you may do in your life. If you die tomorrow, would your spouse have the means to provide your children with the opportunities you would want them to have?
Would there be enough income to pay for daycare, college education, and all of the necessities in between? If your spouse doesn’t work outside the home they still need life insurance, because they provide services that would be expensive to replace, such as childcare, transportation, and housekeeping.
And if you’re single with children, you need life insurance more than married parents because your children rely on you for everything.
Change in Employment
If you’ve recently been promoted, changed jobs, or lost your job, it’s a good time to look closely at your life insurance coverage. As your income rises, your spending tends to rise too, so updating your life insurance coverage will help ensure that your family would be able to maintain its improved lifestyle if something happens to you.
When a person loses their job they often lose a life insurance policy they had through their employer. Although they are often small policies, it pays to replace it, or re-evaluate your needs at this time.
Buying A New Home
Your home is your probably your most significant financial asset. Life insurance can be used to pay down or retire the mortgage, and spare your family from finding a less expensive place to live. It can also provide the funds needed to help family members maintain the quality of home they’ve come to expect.
Retired or Planning for Retirement
If you died today, your spouse could outlive you by many years. Would they have to make drastic lifestyle changes to make financial ends meet? Proper life insurance coverage can help widows and widowers avoid struggles in retirement if their spouse dies before they do.
You should consider life insurance if you’re providing financial support for aging parents or siblings, or if you have significant debt that you wouldn’t want passed on to other family members.
Let Jeff Pennington help you put together an insurance program that’s right for you. Call him today at 1-877-221-6198 to discuss your needs and get a selection of life insurance quotes for your situation. Jeff can answer all of your insurance questions and will provide friendly personal advice.