Do you have life insurance coverage? If not, talk with an agent today! We know that life insurance is not one-size-fits-all. Everyone’s needs, wants, budgets, and goals are different. However, you can get a good estimate of how much of a death benefit your family will need to maintain their life style. Consider things like your mortgage, monthly bills, taxes, education expenses, and debts. Ideally, the coverage amount should be large enough to meets the needs of all those who depend on you.
There are several options for benefit payouts. You can opt for a single lump-sum payout or monthly payments, which is a great option for young beneficiaries. Additionally, you can also structure the policy to pay into an individual retirement account for your spouse. We have options for every budget and out agents can help customize your coverage to your family’s needs! Here are a few life insurance scenarios to consider if you’re still on the fence about getting a policy:
Group Insurance May Not Be Enough
The group policy your employer provides may be affordable and easy to enroll in without a medical exam. However, group policies may only pay an amount equal to one or two years’ salary, or a similarly limited amount. That may not be enough to cover all of your family’s needs if you pass. Also, you may not be able to take it with you if you change jobs. Imagine losing your job – and life insurance – just a few years before retirement. Having a personal policy to supplement your employer-provided policy can help ensure you always have coverage.
Saving for Your Children
Getting your child a permanent life insurance policy now means they won’t have to worry about qualifying as an adult later! Juvenile life insurance policies guarantee their future insurability, regardless of their future health or lifestyle. It doesn’t even require a medical exam! Purchasing a life policy for your child now can also help them get the best possible premium rate, as costs tend to be much higher as an insured ages. Unlike 529 college savings plans, a child’s life insurance policy can be used for purposes other than education expenses. Your child could use the cash value of their insurance policy to start a business, purchase a home, supplement their retirement, or pay for school!
Many retired couples depend on Social Security and pension income to survive, but when a spouse dies those payments may be reduced. Many of the ongoing expenses remain the same for the survivor, and they may still need to pay off a mortgage or other debts. You can help protect your spouse with life insurance, so a personal loss does not become a financial one as well.
Stay-at-home parents take care of a LOT of jobs – dietitian, event planner, executive housekeeper, and interior designer just to name a few. Some studies estimate a stay-at-home parent’s household contribution to be worth over $162k a year! The primary earner and the primary care-giver both provide essential services to their family. So it’s important to consider purchasing life insurance for stay-at-home parents, as well as your family bread-winner. It’s essential to factor in what it would cost your family to replace the services or income that either parent provides.
Death of a Spouse
Married adults, with or without children, could become the sole provider for their household if they lose their spouse. This could be paying a mortgage, taxes, and other bills, not to mention childcare if you have children. Remember to consider coverage for both working and stay-at-home parents. This policy would ideally replace the working parent’s income, should they no longer be around. Or it would support resources for childcare, so the working parent could continue to provide an income. Empty nesters and retirees may no longer have financially dependent children, but make sure to consider the expenses of a surviving spouse. A reduction in income and pensions could make it difficult to cover mortgages, final expenses, or other debts.
Life insurance has a number of benefits for business owners. First, it’s a valuable employee benefit and can help a business owner attract and retain employees. Second, key employee life insurance could assist in the event of the employee’s death. This type of life policy can help make it financially possible for the business to hire and train a replacement. Life insurance proceeds can also help the surviving partner or family members purchase a deceased owner’s share of the business.