As you get older, your life insurance needs change. When you’re young, wild, and free, you might not need life insurance. But as your family grows and your responsibilities increase, so might the need for life insurance. On the other hand, if your responsibilities and debts diminish, so might your need to insure your life. Let’s take a look at how your life insurance needs may or may not change throughout your life.
When You’re Young
When you’re young, you might be independent, self-reliant, and not depending on others for your financial well-being. Like most people, however, your death might proved to be a hardship for other people in your life. When you are young and single, life insurance might not be a big priority for you.
Some people may argue that when you are young, you should take advantage of the great life insurance rates that you can lock-in when you’re still healthy. When it comes to life insurance, those without pre-existing medical conditions can get better rates. When you are young and do not have these medical problems, your rates will be lower. On the other hand, you could also use the money that you would otherwise pay on life insurance to invest. Either way, you will save (and earn) money in the long term.
Housing And Debt
The biggest issue to look at when it comes to young families is the mortgage. A lot of times, a young couple’s house is their biggest piece of debt. If you die before your time is due, your spouse would therefore be on the hook to pay off the rest of the mortgage. If you purchase life insurance, your spouse could use the potential benefit to cover your death’s expenses (funeral, burial costs, etc.).
People Depend On You
If your income is supporting many children, your parents, or even your grandparents, your life insurance needs increase significantly. In this case, buying life insurance while you are young is highly advisable as it could provide a nest egg of support for your dependents in the unfortunate event that you were to meet an early death.
If You Get Married
When you get married, your life insurance needs increase tremendously. Even if you do not have children in your marriage, buying a life insurance policy is still highly advisable, especially if you are the “bread winner” or sole income earner in the relationship.
To make sure your husband or wife can continue to survive after your death, purchasing a life insurance policy of a modest amount is strongly recommended. At minimum, this benefit will be able to provide your loved one with the peace of mind that he/her is protected in the event of your passing.
If You Get Divorced
You don’t need me to tell you about the high divorce rates in this country. It’s a sad reality that you and your spouse have a high likelihood of divorcing. If this were to happen, you need to decide what to do with your life insurance coverage. Marital status, especially divorce, can have a huge impact on your life insurance rates.
If you and your spouse have kids and were to divorce, these divorce issues become more complex (when it comes to life insurance). Despite the divorce, you will still want to make sure your family (especially your children) is provided for in the unlikeliness you were to pass away unexpectedly. This may mean purchasing a new policy or changing the beneficiary of your current policy from your husband/wife to your children.
Life insurance status can change is strange ways as a result of a divorce. If you and your spouse cannot come to terms with your life insurance policy changes after a divorce, the courts will usually make the decision for you.
Job Changes And Work Issues
As you age, you may experience increased responsibility at your work, including promotions and increased wages. You may even quit your job and find a new one or even start your own business. Keep in mind that whenever your employment status changes, your employer-sponsored life insurance plan will also change. When/if this was to occur, it is of utmost importance to check if you are eligible for life insurance through your new employer. Otherwise, you might want to consider purchasing life insurance on your own.
You may also have the option to convert your employer sponsored group plan to an individual policy. Although this may cost more, it might be a good idea, especially if you have a pre-existing medical condition that would otherwise prevent you from finding affordable life insurance rates on your own.
When You Retire
When you eventually retire, your life’s priorities will shift and therefore your life insurance needs will change. If fewer people are depending on your income to get by, you may need less life insurance coverage than you previously had. On the other hand, you may want to keep a high amount of coverage so that your family has a nice lump sum waiting for them when you pass. Not only can life insurance pay for your funeral expenses and lost income, it can also be used to pay your estate taxes or even leave money to a charity of your choice.
As you can see, there is no true “ideal time” to purchase a life insurance policy. Each person’s financial situation is different and will constantly be changing throughout his or her lifetime. Contact Life Ant if you would like to be advised on the right time to purchase life insurance. Otherwise, feel free to enter your zip code at the top of this page to get a free life insurance quote from us.