People think life insurance is only important if you have dependents, but it’s important at all stages of life. When you’re just starting out in your career, building your family, or planning for retirement, life insurance can be a big benefit and a valuable source of security for you and your loved ones.
Those just starting out in their careers might not think of life insurance as a priority. But buying a policy when you are young and healthy can make practical sense. Life insurance can be less expensive when you are young because your chances of dying are lower, so locking in a low rate early can end up saving you money over time. You might also want to buy life insurance if you have a co-signer on your student loans or other debt, so that, should you die, that person is not saddled with your financial obligations.
This is particularly important as you enter into marriage and parenthood. If you are married and/or have children who rely on your income, a life insurance policy will provide a financial cushion to fall back on if you die. The policy can replace your income, pay off a mortgage, and fund your kids’ tuition, if you die prematurely. Your family will be financially secure and can maintain their lifestyle while they get back on their feet.
It may well be the middle of your life, your children may be nearly grown, and your mortgage nearly paid off, but life insurance is still very much a part of your financial plan. If you’re saving for retirement, you can use cash value accumulation in a permanent life insurance policy to supplement your retirement income or provide liquidity for unexpected expenses. Final expenses, such as funeral expenses, can also be covered with the life insurance dollars you set aside. Not to mention, life insurance can serve as a financial legacy to your family.
Later in life, life insurance can safeguard your spouse’s financial security and help cover the cost of your final expenses. Seniors often look to life insurance to leave an inheritance for their children and grandchildren. Purchasing a policy when you’re older can be costlier, but you still have options. You can get a guaranteed issue life insurance policy, which doesn’t require you to undergo a medical exam.
Regardless of what stage of life you’re in, life insurance can give you the reassurance that you and your family are financially prepared for life’s uncertainties. When you experience changes as you move through different life stages, reassess your needs to make sure you and your family are protected.
