Who needs life insurance?
If your death will result in financial hardship for someone else you need life insurance. Life insurance is a great way to provide the money necessary for your family to meet its financial needs after your death. Many families use life insurance proceeds to pay for things like funeral expenses, food, child care, burial expenses and college tuition. How would your family pay for these things ifsomething were to happen to you. Most people need some amount of life insurance. To determine if and how much, you need to think about the worst-case scenario. If you died tomorrow, would your family have the money to pay for final expenses such funeral costs, medical bills, taxes, debts, and attorney’s fees. Would your family be able to keep up with ongoing expenses such as rent, mortgage, food, clothes, and healthcare? Without your income would your spouse be able to pay for college for your kids or be able to save for retirement? Loosing someone you love is always difficult. Adding financial stress will only make grieving more difficult.
Times when you should considered and or revaluate your existing life insurance:
Marriage
Immediately upon becoming married you now have a responsibility to each other to make sure you are both covered. Even if you don’t have children yet or never plan to have children. Think of the expenses your spouse could be left to pay for.
Child Birth
If you are planning to have a child you should have adequate life insurance in place before becoming pregnant. Many insurance companies wont issue life insurance policies for pregnant women because of the potential for complications. You will need to plan in advance to ensure that your child and spouse will be provided for.
Stay at Home Parent
You are providing a service valued at a minimum of $40,000 per year per child! It is JUST as important for the stay at home parent to be covered by life insurance as it is for the bread winner. The child care costs alone could be a financial disaster!
