Life insurance is designed to protect your loved ones from an economical loss resulting from the unexpected death of an earning member. In other words, if you have loved ones or are likely to have loved ones who are financially dependent on you, life insurance is not something you should put aside. Life insurance is one of the most practical ways of saying how much you love and care for your family and they’re likely to remember you long after you’re gone.
Take for instance the story of Mary Rose. Her husband died young when their children were just 5 and 3. His life insurance policy (provided by his workplace) was just enough to cover funeral expenses. But Mary learnt an important lesson as she re-joined the workforce and began earning in order to provide for herself and her two kids. She decided to buy the maximum amount of life insurance coverage she could afford. Two years later, Mary contracted cancer. She used her accelerated death benefits to pay off her mortgage and put aside a college fund for both her children. Today, Mary’s children live securely with their grandmother in the house that Mary paid for. Both the children have passed out of college in flying colors and enjoy well-paid jobs.
There are certain stages in your life which should remind you to buy life insurance or make sure you have enough coverage
Right now. Death is uncertain and there’s no telling when it may strike and to whom, which is why most life insurance experts will tell you that the best time to buy life insurance is now—the present. It’s not something you want to procrastinate on since your loved ones are depending on you to make this crucial decision.
Getting married. Being married means that you now share financial obligations together. Discuss a financial plan with your spouse and make sure you each buy life insurance to cover the economical loss that would be incurred if either spouse were to die unexpectedly.
Arrival of a baby. Each addition to the family, increases your financial burdens. It means more educational expenses, more living expenses to provide for your entire family, and if it’s a girl you’ll want to save up for her wedding. This are future expenses you should include in your coverage.
Remember, too that getting life insurance when you’re pregnant might mean you have to pay a more expensive premium. For the best life insurance rates, get a policy before you are pregnant.
Buying your own home comes with a hefty mortgage. If you or your spouse were to die, how would the surviving spouse manage paying off the mortgage? If you plan your coverage well, life insurance death benefits could help to cover your entire mortgage or at least a significant portion. Remember Mary’s case and how her family could live securely in the home she bought for them.
Raise in salary. With hike in salary, there are lifestyle changes. You might want to move to a better neighborhood or put your kids in a private school. The fact is that as your income rises, so do your spending habits. Your coverage should allow your family to live in the kind of lifestyle they are used to.
After you retire. Many people still need to be insured even after their retirement. Their kids may be out of the house, living independent lives, but they may have aging parents living with them who are dependent on their care. Death benefits would help them live a comfortable life and afford them the kind of assisted living services they need either at home or in a nursing facility.
You might also want to use your life insurance policy to augment your retirement funds. Money dwindles in value over time and the amount you saved for retirement may not suffice the needs of a surviving spouse. Death benefits from a life insurance policy would make a meaningful contribution to a retirement fund allowing your spouse to live comfortably without having to worry about finances.
Re-Marriage. If you’ve re-married you will either want to purchase a new life insurance policy with our new spouse as the beneficiary or you may consider reviewing your existing life insurance policy and make the necessary changes. If there are children involved make sure you consider their needs before cutting them off from your beneficiary list.
Getting the best life insurance policy
Remember, online life insurance quote providers are a convenient way to get yourself a cheap life insurance policy that meets your specific needs. If you’ve missed out on buying life insurance when you’re young and healthy, you should definitely consider life insurance at various stages of your life when buying a life insurance policy would still mean a lot to your family. In fact, there’s no better way of saying you love them.
There are sites that offer personalized customer services. You can talk to licensed life insurance professionals through online chats or over their customer call lines. They’ll answer all your queries and meaningful recommendations to help you make the right life insurance decisions, at the right time.
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Denise Mancini-Blonda is manager of public relations and marketing communications for AccuQuote(Leader in Providing Term Life Quotes). In addition to overseeing all corporate media relations, internal executive and employee communications, she plays a key role in the overall content development of the company’s online and offline marketing campaigns.