Most people think life insurance is only for the elderly, the sick, or people who have nothing better to do with their money in middle age. But the truth is that life insurance can be important for anyone at any age. In fact, it’s the best way to protect your loved ones from financial burden and hardship in the event of your death. Whether you or sick or not, and no matter what age you are, here are some things to consider when deciding whether or not you need a life insurance policy.
1. Beneficiary Needs
When purchasing life insurance, you first want to determine your beneficiary. If you’re married or have children, your next of kin will automatically be made the recipients of your death benefit and other money owed in the event of your passing. But this is not the case for single people who have only removed family members or no family at all. When deciding to opt for a policy, you’ll want to ask a licensed insurance agent about how to name a beneficiary and what it will mean for them to be named as the rightful payee to your account.
Once you’ve determined your beneficiary, it’s important to know exactly what they will be entitled to. Some insurance policies have add-ons that can cover things like money for minor children’s educations, regular monthly payouts, and more. While a basic policy will be more straight forward, it’s a good idea to ask your agent about additional coverage options.
No matter how old you are or your situation, the best way to find out about life insurance coverage options for you and your family, is to call for an insurance quote. When you do, be sure to have important information like your medical history and, spouse, and other beneficiary needs on hand if your agent has questions.
2. Overall Health and Risks
When considering purchasing life insurance, think of it the same way you’d decide on whether or not to invest in your home. While the most expensive home renovations might be out of reach, adding to your overall home’s value is generally a good thing to do. This is because your home is an investment in you and your ability to build equity for overall financial wealth. Believe it or not, life insurance is similar. While the investment is more in your family than yourself, by buying term life insurance now, you’re setting your family up for a better future. The same way your quality of life would go up in that newly renovated house, there’s will too. Instead of worrying about hefty funeral costs or more after your death, they’ll receive a payment from taking care of it and being able to begin to put the pieces back without worrying as much about expenses.
For many, this is not enough of a reason because their overall health is good. If you are young and don’t have a risky lifestyle, you might wonder why a life insurance policy is important now. While it’s true that your demographics and statistics may dictate it’s not as important for you than someone in their fifties, sixties, or seventies, the reality is that accidents happen, and anything can happen at any time. Likewise, by signing up for a fixed-rate policy now, you can lock in rates based on your current good health versus paying more in the future as your health declines.
3. Current Investments
Whether you’re regaining your confidence after hearing loss and more focused on health insurance costs than the amount of life insurance you carry, it’s still a good idea to give a life insurance agent a call to find out about your options. Your simple health issue now could turn into something bigger, putting current investments and all you’ve worked for at risk. If you lay awake at night worrying about how your spouse would afford your house without you, it’s a good time to call no no matter what your situation. The average person pays significantly less for life insurance than they do for car coverage.
4. Peace of Mind
In the end, the ability to protect your investments loved ones, and even future payouts could be reason enough to sign up for a life insurance plan. This is because of the peace of mind you’ll get every time you fill out that monthly check. Knowing the people you love will be okay when you die is one of the best gifts you can give to yourself and them no matter how long you think it will be before you say goodbye. Permanent life insurance can’t buy you more time, but it sure can buy you peace of mind.
