Summary List Placement
Life insurance is a common financial protection to keep your family or other dependents financially secure in the event of your death.
While no one likes to think about dying, car accidents, injuries, illnesses, and shootings are common reasons people die unexpectedly.
Even with life insurance from your employer, it is a good idea to get your own term life insurance policy to protect your loved ones.
Policygenius can help you compare life insurance policies to find the right coverage for you, at the right price »
Life insurance might be the most morbid part of personal finance, but it’s also one of the most important. No one likes to think about dying. But if you have anyone relying on your income, it’s imperative to plan for every worst-case scenario.
To make sure your loved ones have enough money to keep their home, put food on the table, and get back on their feet if you pass unexpectedly, you should get life insurance.
Do I need life insurance?
If you are a primary income earner or primary caregiver in your household, you should consider life insurance. The best kind of life insurance for most people is term life insurance. This type of insurance gives most people a very large death benefit for a low monthly payment.
But just because you are not married with kids doesn’t mean you shouldn’t get life insurance. If you ever plan to have a family, getting life insurance now is a good idea. The cost of life insurance goes up with age, so the cheapest it will ever be for you is likely right now. Once you start paying for your term life insurance policy, the monthly cost is locked in for the entire term.
2 situations where you might not need life insurance
There are two main situations where you might not need life insurance. The first is if you really never plan to have any dependents. And that doesn’t just mean kids. If your aging parents might end up living with you in the future, they could be considered dependents. If you are a primary income-earning spouse, your partner may also be a dependent. The financial security of those who depend on you is very important, even if you’re no longer around.
The second scenario where you might consider skipping life insurance is if you have enough savings and investments to self-insure. That means you have enough money that your family would be fine even if your income stopped right away. But don’t underestimate that number.
It is very likely that at least you or your spouse will live into your 90s. Even if one of you is no longer around, the cost of healthcare and a retirement that could last 30 years or longer are major expenses. Staying in your home, covering the bills, and paying for future medical expenses should all be factored into a …read more
Source:: Business Insider