Life Insurance: When Do You Need It?

Most adults picture life insurance as an essential that’s needed when they start a family.  It makes sense because whether one or both parents work, the family unit takes an immediate financial hit with the loss of one income, and while life insurance on the family breadwinner is vital, there are other instances when life insurance is just as important. 

Life Insurance is for more than just parents with children!

Here are 4 more situations where life insurance is necessary:

Stay-at-Home Parents –  Since life insurance provides a safety net in the event of a sudden loss of income it makes sense that we associate it with the family breadwinner.  Life insurance is equally necessary to have on stay-at-home parents though, because childcare and expenses to keep the home running which used to fall on the stay-at-home parent, are now an unavoidable expense. For more info, download the Guide to Life Insurance for Families.

Married…Without Children –  Married people often mistakenly believe they won’t need life insurance until they start a family, but even in a marriage without children spouses generally depend on one another for financial support – both contribute toward household expenses. If one spouse dies unexpectedly, an enormous financial burden is potentially put on their partner, who is now solely responsible for all household debts such as credit cards, car payments and rent or mortgage payments.

If your not sure you need life insurance as a couple, consider whether or not your spouse would be able to sustain the life you’ve built as a couple. If the answer is no, then it’s time to purchase life insurance. 

It’s important to note here that partners who are not married can name each other as a beneficiary; marriage is not a condition that needs to be met to receive benefits. 

Purchasing a Home or Property – A home mortgage is usually the single largest debt adults will ever have.  For this reason, once you become a homeowner, life insurance ensures that if you die there will be enough money for your beneficiary to continue making the mortgage payment. This is especially important is you have a cosigner for the mortgage who is now responsible for the entire debt. If your family lives in the house, life insurance gives them the financial resources to stay in their home.

Supporting Aging Parents – Nearly 10 million adult children care for aging parents and many elderly parents depend on their children’s income for some or all of their support. Having adequate life insurance coverage ensures that in the event of the adult child’s death, aging parents still have financial resources to remain supported.  Just as you would for your children, there’s an obligation to have a safety-net for parents who depend on you financially.

If you would like to learn more about the life insurance options available to you, contact our office today.

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