Many people aren’t really in the market for a new car, a new home, or a swanky getaway to Greece right now. However, when the interest is strong enough, we often turn what we want into a reality. Even when the times do not seem like they’re on our side, we consider our options and we tend to make things we want happen.
When deciding to make a purchase towards what we need, we should approach the decision with as much interest as when it comes to the things we want. Life insurance is a need indeed. The decision to purchase life insurance, regardless of how right the time may or may not seem to you, should be made with great interest and consideration.
Here are 5 critical times to purchase life insurance:
1.When a child is born
According to the U.S. Department of Agriculture, the average cost for middle-income parents to raise one child from birth to 18 years of age is over $230,000. This figure includes housing, food, medical, educational and daycare costs. With costs only increasing as the child grows older, it is imperative to purchase life insurance when he or she is born. If you are married, you’ll want to ensure that your family can survive without the income of a spouse upon a sudden death. Life insurance offers coverage in the form of a death benefit, a benefit that could be used to cover funeral costs and other expenses.
2.When you land a job
Purchasing life insurance through your employer is a convenient way to secure your family. The HR department at your office is most likely going to contact you upon your new job start date to ask you to choose an insurance policy. This is something you could consider if you’re on a budget, as life insurance through work is usually an affordable option. However, if you lose your job, you lose insurance coverage. You’ll also have a gap in coverage unless you purchase an insurance policy on your own. If you stay with the employer, but your family size and lifestyle changes, you may find that the employer-based coverage is no longer suitable for your needs. This could lead to the purchasing of additional or supplemental insurance.
3.When you purchase a home
Life insurance is one of the many important expenses a homeowner should consider. If you have a 30-year mortgage and purchase a 30-year term life insurance policy, you will gain peace of mind in realizing that the insurance policy can be used to cover mortgage payments — or even pay off the balance! Should you decide to refinance your home, add an additional room or make any improvements, you might need to revisit the coverage details listed in the policy, and possibly add more coverage or purchase a new policy.
4.When you start a business
When you launch a new business — and it becomes the sole income for your household — life insurance should be considered to help your loved ones in the event of your death. With costs of running a business likely to affect your family budget while you’re alive, you’ll want to ensure your household is secured should you suddenly pass away. Your family depends on your business’ income to survive. However, your family is not the only group of people you’ll want to consider when purchasing life insurance. There are business partners, managers, and key employees that you’ll rely on while they are alive. Should they die, life insurance will help alleviate some of the costs of losing earnings due to a shortage of staff.
5.When you take care of parents
If you become the caregiver of an elderly parent, the death of the parent could lead to expenses that are beyond what you can afford on your salary. Funeral costs alone could increase the burden of losing your parents. If you have children, you’ll also need to care for them. With costs increasing year after year, life insurance will help you care for mom or dad in terms of medical and long-term care needs, help cover funeral expenses — including burial costs — and help you take care of your children who will need your support now and in the years to come.
Now that you know when to purchase a life insurance policy, you want to begin your search for the best coverage. While there are many ways to purchase life insurance, it’s best to contact a professional to assist with making the right policy choice. At The TGQ Law Firm, we are able to point you to life insurance agents that can help you determine which type of life insurance is best for you. Feel free to reach out to us, or contact the estate attorney nearest you.