Recalculate your Life Insurance Needs
For most people, it is easy to say “I’ll handle that later.” Especially when it comes to life insurance. We assume that we have time to sort out the details of adequate coverage down the road. However, in the end, either we forget it mentally or it’s too late to consider.
Needless to say, life insurance can play a key role in protecting your loved ones financially when you pass away unexpectedly. Often the role of protection plays in your financial plan depends on your life stage.
Here are several examples of when you may want to evaluate your life insurance options:
Young adults starting their careers
When an individual settles into his first or second job and takes on responsibility for all financial matters, he needs to balance a myriad of priorities. These may include managing the mortgage of a newly-purchased home or paying off significant student loan debt.
In the happening of your death, it may become difficult for your family to cover your financial obligations out-of-pocket. However, a life insurance policy may help provide the cash flow for your family or other trusted beneficiary to handle your affairs without it becoming a potential burden.
Newly married couples
When you build a life together with your spouse, it’s obvious that your individual financial responsibilities will become intermingled, even if you choose to keep separate bank accounts. If you die prematurely, your spouse could be extremely affected by the loss of your expenses. In such a situation, life insurance can protect the financial contributions of each spouse. It will also help the surviving spouse to carry on without major changes in lifestyle.
Parents of minors or young adults
For many individuals, the need for life insurance becomes a topmost priority following the birth or adoption of a child. If you have or are considering starting a family, this is the right time to evaluate your insurance policies. And make sure that you have enough coverage to meet your family’s everyday expenses, in addition to future financial goals.
Future goals may include everyday living expenses over a period of years, costs for children’s education and retirement savings for the retired spouse. In case you or your spouse is a stay-at-home parent, it’s a necessary toe have insurance that covers the potentially significant costs of childcare and increased household expenses your family may incur in his absence.
