A life insurance policy can help both you and your loved ones. It can be a wealth-building and savings tool, a way to provide financial support for your family,Or, in some cases, even In a pinch.
Generally speaking, life insurance can be a smart investment for any adult, but there are certain circumstances. If you think you would benefit from having a life insurance policy, start by getting a free price quote so you know exactly what to expect.
4 times adults should have life insurance
Do you have a life insurance policy? Should you? Below are four times when you should (or consider) purchasing life insurance protectionwhat do you have).
1. Time to get married
Life insurance is usually recommended whenever you’re making a big life move — and tying the knot is definitely one of those moments.
First, life insurance ensures that your spouse has the funds necessary to cover your funeral, burial and end-of-life expenses (including any medical bills you may be left behind) in the event of your death. They may extend to unpaid debts that may remain.
“We find that the time when people shop the most is during the ‘me to we’ transition,” said Sahang-hee Han, head of strategy and planning at Haven Life. “It protects your loved ones financially if something happens to you.”
Having a life insurance policy is especially important if your spouse is dependent on your income, as it gives them funds they can use to support themselves in your absence.
“If someone depends on your income, you should consider buying life insurance,” says Amanda Kuhl, senior vice president of life products at New York Life Insurance.
If you recently got married, or plan to soon, get a free life insurance quote now.
2. When having children
When you have kids, you add more dependents to the mix—more people who depend on your earnings for food, shelter, and basic necessities.
A life insurance policy can cover these, as well as provide funds for your children’s college tuition or a future wedding, should you pass away. It can also help pay off mortgages, credit cards and other debts that may be burdened when you leave.
“My father passed away unexpectedly when I was 11 years old, leaving my family facing an uncertain future in the face of tragedy,” said Jamie Hale, founder of Ladder Life Insurance. “Thankfully, my father’s life insurance policy offered financial stability when I needed it most, allowed my family to stay in our home, and eventually helped me finance my college education. Because of that early life experience, I came to see life insurance as a labor of love. .”
3. When you own a business
If you are a business owner, it can also be smart to have a life insurance policy. Not only can it pay off your business debts or compensate your family if you pass unexpectedly, but it can also protect you if you have a partner in the company.
“If a business owner has a 50% stake in the business and dies, that part of the business is not gone. Usually the company will have a buy-sell agreement that says the other partner has the right to buy the business from the partner’s successor,” says Mike Raines. Owner of Rains Insurance Group “Life insurance works beautifully in this case, because it provides immediate cash to buy shares of the business.”
Life insurance may also offer what’s called “key person coverage,” which pays the business if a key employee dies. “It can help finance the business until another worker can be found or hired,” Raines says.
4. When you want to increase your wealth
If you want to grow your wealth over time, life insurance can help there, too, Kuhl says.
“A life insurance policy is very versatile and can also help you increase your family’s wealth,” she says “It can enable you to change your mindset from, ‘What will my family do if something happens to me?’ ‘How can I increase our family’s wealth for a more prosperous future while leaving a legacy for the next generation?’
The key is to make the right choice. With some options – eg , or For example, your policy has a cash value that increases or, in many cases, you can even borrow against.
“Whole life insurance provides lifetime security for your loved ones and versatile benefits, including cash value savings that can be accessed and used for things like education funds or inheritance,” says Kuhl. “You may also be eligible for dividends from the insurer each year which can be received as cash and/or applied to reduce your annual cost or reinvest in the policy.”
Get a free life insurance quote now so you know how much it will cost.
Plan to reevaluate
Life insurance needs can change over time, so it’s important to do thisSometimes it still offers to confirm
“It’s important to understand which priorities need to be covered in the event of death – and what the real costs are for those left behind,” said Chris Orestis, president of The Retirement Genius. “These costs are going to evolve over time as a person’s insurable interests evolve. What they need will be different if they buy a life insurance policy when they first get married before they have children, and then it will change when they have their first child, And then maybe a second, and it’s gone.”