Signs It’s Time to Buy Life Insurance

It’s easy to put off making plans for the end of your life, especially when you’re young. After all, thinking about your own mortality probably isn’t your idea of a good time! In fact, many young Americans don’t have or even think about life insurance unless it’s offered by their employer – but these policies are often inadequate. And what many people don’t realize is that life insurance is definitely something you want to get sooner rather than later, since when you get it will affect your rates and benefit amount. Not sure if it’s the right time for you? There are some simple signs that it is time to buy life insurance! article title inside an alarm clock on an orange background

What Is Life Insurance?

Life insurance is essentially a contract between you and an insurance company. In exchange for premium payments, they promise to pay a lump sum to a beneficiary of your choosing at the time of your passing. This lump sum is called a death benefit. It is most often used for funeral costs or paying off a mortgage or other debts. It can also help to replace the loss of your income. 

Policies are cheaper when you’re young and healthy, so getting one sooner rather than later is smart. Beyond getting cheaper premiums, if any of the situations below apply to you, it’s time to start shopping for a policy.

1. Your Income Helps Support Someone

If you earn an income that helps to support someone, you need life insurance, simple as that!  And the more money you make, the more life insurance you need. As we mentioned, your job might offer you a life insurance policy, but that policy is a base level of coverage and likely won’t be enough. So how much do you really need? You should look for a policy with a death benefit of at least 6 – 10 times your annual salary. That means if your salary is $50,000, your policy should have a death benefit of around $500,000. 

Think of it this way: if you’re part of a couple, you’re most likely planning your life around two incomes. You plan on paying for your mortgage, retirement, and even day-to-day expenses with each other’s incomes in mind. Imagine suddenly losing your loved one and then having to move or completely rebuild your life because you can no longer afford the life you have. That means protecting your partner with life insurance is a must.

2. You Have Kids illustration of family underneath an umbrella on a blue background

If you’re a parent you should already have life insurance. Ideally by the time a life insurance payout comes, your kids will be grown and leading their own lives, but it’s better safe than sorry. It generally takes two incomes to provide for kids. So a sudden loss of income can be devastating, and not just in terms of day-to-day expenses. If the worst does happen, life insurance benefits can be put into a college fund or a savings account to help pay for bigger life expenses that you’d planned to be there for.

3. You Have Debt

When you’re young, you can start racking up some hefty debts that are meant to be paid over a long period of time. You acquire these debts hoping to live a long life and to pay them off long before you’re gone, but you don’t know what the future holds. No matter when you pass away those debts still need to be paid, and they will fall to any family you’ve left behind. 

Your debt balance should play a factor when you decide how much life insurance you need. Theoretically you want to leave enough of a death benefit so that your family can pay off your house and other loans, and not have to double their own debts. Getting a robust policy will keep your loved ones from having financial worries on top of handling your loss. 

The Takeaway 

Life insurance is about protecting your loved ones. It’s hard enough to grieve a loss, and you don’t want to add even more stress to the situation. The best way to find a life insurance policy that protects them is by speaking to an agent. Below we have a list of the top life insurance companies in the nation. All of which offer hassle-free assistance and competitive rates. Shopping around is your best bet, so always check multiple sites to make sure you get the best rate possible. Help protect and provide for your family by checking rates today.

Co-written by Brianna Hartnett

5 Signs It’s Time to Get Life Insurance

There are many reasons to buy a life insurance policy. All of these reasons might apply to you, or maybe just one of them, but no matter what stage of life you are in, a life insurance policy is a helpful and even necessary thing to have. In fact, 59% of people who don’t own life insurance say they need it! If you don’t already have life insurance, here are five signs that it’s time to purchase a policy.

1. You Just Got Married

couple getting married
When you get married, getting life insurance is important to provide your spouse in case of an accident.

Having a partner to go through life with you is a wonderful thing, and because you love them, your instinct is to want to protect them and provide for them. The best way you can do this is by buying a life insurance policy that can not only provide you with a cash value that you can borrow against in times of need, but will also provide financial stability when you pass away. A policy can help replace your income and cover expenses that would fall on your partner if the worst were to happen. 

2. You Just Bought A House

Houses are not cheap, and the mortgage you have to pay for 20+ years can be a huge monthly expense. That means if you were to pass away, it’s possible your family would no longer be able to pay the mortgage, and could end up losing the house you put so much money into and made so many memories in. One way you can prevent this is by having a life insurance policy in place that will continue to help pay the mortgage for years to come: for example, you could choose a term life insurance policy that will cover you for 10, 20, or 30 years. You can even look into riders to add onto your policy that are specific to helping pay your mortgage; these riders can adjust your interest rate and monthly payments on your loan. 

3. You Have People Who Depend On You

Roughly 42% of Americans would face financial hardship within 6 months if the primary wage-earner of their household were to die unexpectedly. If you have older parents, a spouse, children, or any other people who depend on you, they could end up in a serious situation if you could no longer provide for them. With a life insurance policy, you can make sure that they are taken care of in the event that you are no longer around. 

4. You Have Loansloans written in red and enlarged

Do you have those pesky loans and debts that just don’t seem to go away no matter how much you pay into them? Well, any government-issued loans you have will die when you do, but this is not necessarily the case when you take out private loans, or with other debts you might have. Those loans can fall onto your spouse, or even children when you pass away. Having a life insurance policy can help them pay off your debts, leaving them with the rest of the money to spend how they see fit. 

5. You Are Having A Baby

Congratulations! Children are cute, fun… and expensive. They bring a lifetime of joy, but also a lifetime of worry: you will worry about what school they should go to, their sleep routine, how well they’re socializing with other kids, whether they’re eating right – and you’ll also worry about providing a great future for them. You will no longer be able to provide for them when you are gone, but a life insurance policy can help to secure their financial future, as well as help pay for their needs and their college tuition, and even leave them a lump sum if you choose the right life insurance policy.illustration of a man scratching his head while looking at a paper and a red shopping cart above him

Choosing the right life insurance policy is necessary to ensure that your family gets the benefits they need. It might seem complicated and frustrating to find the right one, but it can be done, with some help. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.