Life brings many changes, which brings the need for life insurance. The process of purchasing life insurance has become easier because you can now research, compare, and buy right online. If you already own life insurance, it may need updating as you move into various stages of life.
In Your 20s
When you are just starting out on your own, you probably have fewer responsibilities. You have to work to make sure to pay rent on time, and slowly pay off your student loans, but you probably have less need for life insurance. A small term policy may be sufficient for the time being, just to cover your funeral expenses and any co-signed loans you may have. The younger you are, the cheaper it is too. A healthy, non-smoking 25-year-old male can get a $200,000, 20-year term life policy for under $13 a month. If he plans on marrying or starting a family soon, this would be a great time to lock in affordable pricing.
In Your 30s
As you move on further into adulthood, you may be getting married or having children. In most cases, your premature death would create a financial hardship for your loved ones. Term life insurance is an affordable way to make sure your income is replaced in the event of your death. Your spouse or significant other would be able to continue to pay the bills and your children would be able to continue the life you had planned for them.
If you have purchased a home, life insurance needs increase significantly. The burden of paying a mortgage can cause financial strain quickly if one suddenly finds themselves going from a two-income household to one. Selling the home may be an option for the surviving spouse, but if you have children, uprooting them would be very stressful especially during such a tragic time. The death benefit of a term life insurance policy gives the surviving spouse money to pay for a nice funeral, continue to pay the mortgage, afford to take time off work to be with family, and make sure the hopes and dreams you had planned out for your children are still attainable.
In Your 40s
As you mature, your life insurance needs can change again. Perhaps you got a new job? Review your life insurance coverage any time you leave a company. Any employer-sponsored life insurance policy you had will usually terminate, so you will need to find out if the new company offers this benefit. You may need to look into purchasing additional life insurance coverage on your own. Maybe instead of a new job, you decide to become your own boss and start a business. Term life insurance can be a powerful tool in making sure a business can continue running even after the death of a key employee.
In Your 50s
Today an estimated 60 million families in the U.S. are caring for an aging or disabled person. If you are one of the primary caregivers for a parent, who will provide for them if something happened to you? With people living longer every year, the costs of caring for an aging parent are rising as well. Do you have people in your life who are willing and able to step up to the plate if you suddenly passed and your parent needs help? Term life insurance can make sure your loved ones are still taken care of even after you are gone.
In Your 60s
Once you retire and your priorities shift, your life insurance needs may change. Life insurance is not a “set it and forget it” product. It’s important to review your policy often to ensure it’s in place to carry out your financial wishes if you are no longer around.
Your 70s and Beyond
Life insurance has the capability to cover bills, mortgages, funeral expenses, keep businesses afloat, and leave money behind to your loved ones. Be sure to review your policy annually and every time a significant event happens in your life such as:
- Marriage or divorce
- A new baby in the family
- Purchasing a new or second home
- Job changes
If you do not yet have life insurance, don’t wait. The younger and healthier you are the cheaper it is. Medical issues could arise that may increase premiums by hundreds, or the issues may even deem you uninsurable. When it comes to protecting those you love most, is there really a reason to take the wait-and-see approach?