Nobody wants to think about their death or that of a close family member, but it does happen to all of us eventually. Life insurance is so important to protect those closest to you, and if the worst does happen it can be a much-needed lifeline. Life insurance pays out a premium to the named beneficiary upon death but there is plenty more to life insurance than meets the eye. So who needs life insurance and when should I buy it?

Who Needs Life Insurance and When Should I Get It?

There are many people out there who don’t take out life insurance because they don’t think they need it. However, life insurance is perfect for many different kinds of people. There are a few different types of life insurance out there and what you sign up for, depends on your circumstances and what you actually want. You might want life insurance to provide for your family, you might be trying to build wealth or protect your assets. Whether you get life insurance will also depend on what stage of your life you are at, your age, health and how you are situated in your life right now. Below, we list all the different kinds of people who life insurance could be right for.

Life insurance can be a tricky world to navigate, but Tyson is an experienced provider. Get in touch with him today to get the proper guidance you need.

Those Thinking About Starting a Family

If you are young, have a partner, and are thinking of starting your own family life insurance will actually be cheaper at this point in time. Your children depend on you to provide (even if you don’t have any quite yet) and it’s always a good idea to be prepared for the curveballs that life throws your way.

An Established Family

There is no doubt about it, you need life insurance if you have a family. Whether you have one child or five, they are depending on you to give them the best possible support in their life. If you have a partner or spouse, they will need to work extra hard to supplement any lost income in the event of your passing. Don’t leave them to deal with challenging financial problems without the help of life insurance. When answering the question of who needs life insurance the answer should probably both partners to give your children a future they deserve.

Single Young Adults

You might think if you are a young and single adult, you don’t need life insurance, but that isn’t strictly true. One reason why life insurance could benefit you if you fall into this category is to pay for your own funeral costs. Perhaps the payout could support someone else you care for financially, like a parent. The older you get, the more expensive life insurance will become so you can be prepared and stop rising costs.

Homeowners With Mortgages or People With Other Debt

When you buy a home, you have the option to also purchase mortgage insurance but life insurance can also help with your mortgage. Purchasing it will mean that you do not need to worry about mortgage protection. If you have any kind of debt, it’s important that you are responsible for paying it off. It should be covered and able to be easily paid off if you pass away. If you have debts when you die, the money will be taken from your assets or even passed down to loved ones. They really don’t need added stress at a time like that. In short, you definitely need life insurance if you are a homeowner with a mortgage and/or have other debt.

Working Couples Without Children

If you are in a couple but don’t have kids, you really need to talk things through with your partner to decide if life insurance is right for you. Consider your income and your partner’s income. Would they be in a comfortable financial situation if you passed away? There are also funeral costs to think about, so also consider whether you have savings to cover this. To keep this cost as low as possible go for term life insurance or first-to-die life insurance.

Tyson at Accomplish Insurance will be able to give you a consultation. He’ll address your needs and any queries you might have about who needs life insurance and how much you need as well.

Those Who Have Life Insurance Through Work

Just because you have life insurance through your place of employment, doesn’t mean you shouldn’t get your own policy too. If you change jobs at some point or, in the worst case,  lose your job, this life insurance policy will usually then become void. It’s always best to have a backup, don’t leave your life insurance in the hands of your employer. In this situation, think of your other circumstances to help you decide what is the best step in regards to possibly taking out a second policy.

Business Partners/Owners

You can get a life insurance policy for any business obligations that you might have. This is especially important if you have a business partner high up in your own company.

Life Insurance on Your Parents

You can actually take out a life insurance policy on your parents, naming yourself as the beneficiary of course. This can actually work as an investment and it is better to do it when your parents are as young as possible, although this might not always be possible. When your parents eventually need care when they get older, the financial burden on you could be really hard.

It’s especially important to consider taking out life insurance on your parents if you are an only child. This is because, upon their passing, their finances will fall directly to you to manage.

Life Insurance for Children

It can sound pretty unnecessary and even scary to get life insurance on your children, but there could be valid reasons for it. Perhaps you have concerns about your child’s health due to hereditary conditions. If this is the case, it could make them insurable as they get older. Medical exams and other commitments could be costly so you might want to consider critical illness cover for your child in addition to life insurance. A permanent life insurance policy can actually help to build decent savings for your child, which might come very useful when they are older.

Life Insurance in Retirement

You might feel like taking out life insurance when you are older and/or retired isn’t necessary, but it’s still worth thinking about all your options. If you have no other way to pay for your funeral costs, or you want to leave money to your family when it’s your time, taking out a policy could be something you want to do. Keep in mind that life insurance at your age will be less affordable so consider the pros/cons, and keep your personal situation in mind.

There are a multitude of reasons to take out life insurance. It can actually work more like an investment and it isn’t as black and white as what many people think. Hopefully, this article has been helpful in letting you know more about life insurance and what kind of people it is right for. While the idea of life insurance might sound a little scary, it is absolutely essential and useful in a whole host of different situations.

Get in touch with Tyson at Accomplish Insurance for a consultation today!