Introduction
Generally speaking, people get their health insurance through their place of employment. If you leave your job for any reason, that coverage may be gone. Most employers also offer their employees the opportunity to purchase life insurance, but it usually only covers the employee and may be a modest amount. There are two problems with this: it does not take into account the rest of your family members or your unique needs, and people forget that this life insurance coverage may also be tied to that employer. If you leave or otherwise lose that job, the coverage may end as well.
Why do We Need Life Insurance?
We believe life insurance is a fundamental part of a sound financial plan. It has often been said that we don’t buy life insurance for “us,” we buy it for “them,” meaning our family. This is especially true if your loved ones depend on your financial support for their livelihood.
Unfortunately, buying life insurance can be one of those things we put off for a number of reasons: until we get married, until we have children, until we can afford it. However, you may be leaving your loved ones without adequate financial protection in the event of your death. Life insurance will never be more affordable than it is right now since the cost is determined by your age and possibly your health at the time of purchase. None of us are getting any younger and we can’t predict what the future holds for us in terms of our health.
Defining the Need for Life Insurance
Life insurance coverage generally addresses four basic needs:
Final Expenses:
Upon your passing, your loved ones assume the burden of not only your funeral and burial costs but any outstanding medical or other debt you may have incurred. A policy to cover final expenses could help ensure that your family can grieve without added financial worries.
Income Replacement:
A life insurance policy that helps replace income pays for a set period of time and allows your family to adjust to life without your income.
Mortgage Protection:
For most families, the mortgage is by far the largest expense they need to deal with each month. Could your loved ones afford to stay in your home if you aren’t there to make the payment?
Education:
Our hopes and dreams lie with our children. Having an adequate amount of appropriate life insurance coverage could help ensure the money is there for their educational needs.
Conclusion
Most families need more life insurance than what is typically available through one’s employment. Don’t wait until you are without it. Your financial planner or licensed insurance agent can help you with the types of coverage that best fit your family’s needs and budget.
Categories: Insurance, Life Insurance