When is the Perfect Time to Buy Life Insurance?
While there probably is no “perfect” time to buy a life insurance policy, there are key signs that will help guide you in the right direction. The key ingredient needed to answer that question is your stage of life and how many people are depending on you. Life insurance policies provide for payments to family: wife, children, or other dependents in the event that you die and your income was a significant source of economic support. Life insurance is also used to pay for death-related expenses, such as funerals.
While contemplating death is never pleasant, the prospect of leaving young children without the financial support a parent provides isn’t either.
Who Should Have Life Insurance
If you have just married and are contemplating starting a family, it’s time for you to start looking into life insurance. It will provide for your spouse and children which is always a reassuring feeling. If you are young, the premiums will be relatively low.
If you have already started a family, you should definitely already have a life insurance policy in place. A single parent should have one. Both members of a couple should have a policy, even if one is not employed outside the home. Why? Because in the event the one responsible for child care dies, the other spouse would likely have child-care expenses. A life insurance policy can help pay for those.
You should also have life insurance if you have other dependents, such as parents who rely on you for elder care. This is true no matter your age; life insurance will protect your dependents if you die.
When Life Insurance is Optional
At other stages of life, to be candid, life insurance is optional. If you are fairly young, single, have no dependents, and have just entered the work world, your need for life insurance may be fairly minimal. Your friends and family would mourn your passing, but none of them would be bereft of financial support.
If you are older and have significant investments and a pension fund, you may not need life insurance either. If the investments and pension would support a spouse, any children currently receiving support, and pay funeral expenses, life insurance is likely not a need.
Contact us for more information on life insurance, or for any of your insurance needs.