Yes, you probably need life insurance. In fact, you would have to be pretty rare not to need it.
Start by asking yourself this question:
“Will anyone in my life have a hard time maintaining their current lifestyle without my income?”
Simply put, you need life insurance if anyone depends on your financial income to live comfortably now, and in the future.
That could be your spouse, children, parents, pets or even a business partner.
Your life insurance replaces the income you would have earned in your lifetime. Your beneficiaries receive the tax-free payout and can use it to cover funeral costs, living expenses, college education, retirement savings, etc.
Let’s take a closer look at the 8 types of people who need life insurance – and why it’s important to have…
Learn more….How Life Insurance Works
#1 You’re Married
Most people think you don’t need life insurance until you have children. This couldn’t be farther from the truth.
Statistics show that the majority of households need a dual income to live comfortably. What if one of you died tomorrow? Would the other have enough income to cover monthly housing costs, utilities, food, credit cards, etc?
If you are planning on having children in the future, it’s best to get coverage now. You are younger and your premiums will be lower. Plus some insurance companies won’t issue policies to women who are pregnant.
#2 You’re Married With Kids
The loss of a parent can be devastating to children. During that transition period you need to make sure they feel as comfortable as possible in a stable, familiar environment.
If you died, would your partner still be able to afford your current house and monthly expenses? Would they be forced to move into a smaller home in a less desirable area?
If you are planning on paying for your children’s education you can include that amount in your policy as well.
#3 You’re a Single Parent
4 in 10 single parents don’t have life insurance coverage – those who do, wished they had more.
As a single parent you take on so many responsibilities in your children’s lives. You are the breadwinner, caregiver, cook, driver, and the list goes on. If something happens to you, you need to ensure that your children are continuing to be cared for, and that their financial future is secure.
#4 You’re a Stay-At-Home Parent
As a stay-at-home parent you are making a larger financial contribution than you may think. If your responsibilities include childcare, cooking, cleaning, transportation, and other important tasks – it is estimated it would cost over $100,000 a year to replace what you do!
If you have life insurance coverage, your partner can afford to keep giving your children the attention and quality of life they are used to.
#5 You Have Grown Children
Just because your children are moved out and is self-sufficient doesn’t mean you don’t need life insurance. If you died tomorrow, your partner would still have to afford monthly living expenses and the lifestyle you worked so hard to achieve. If you passed suddenly, would that affect your partner’s retirement plan and timeline?
Get enough life insurance coverage to protect your partner’s lifestyle and to secure their retirement in the future.
#6 You’re Retired
You’ve worked hard, now it’s time to enjoy your “golden years” right? Your partner shouldn’t have to worry about maintaining that lifestyle if you pass away.
The average life expectancy is increasing close to 79 years in the United States, and you need to consider what would happen if your partner lives longer than you.
Life insurance can help cover lost income from a pension, funeral costs, and any estate taxes that may be due immediately upon your death.
#7 You’re a Business Owner
You’ve spent years building your business; you need to protect it after you’re gone.
After you pass, what happens to employees, clients, and projects currently in progress?
Life insurance, payable to the business, can provide funds to hire a replacement for you. It can also fund a purchase agreement between your estate and any business partners you may have. That way your partners can purchase your shares in the company, and the business can continue running with minimal interruption.
#8 You’re Single
Most single people think they don’t need life insurance because no one depends on them financially. While this may be true, there are many exceptions.
Are you planning on taking care of aging parents or younger siblings? Your life insurance can provide the funds necessary to make sure they are well taken care of.
Do you carry any debt that you wouldn’t want passed on to your family? Many types of debt do not get discharged when you die, they become the responsibility of those who inherit your estate. Have life insurance to cover these debts.
Do you have any pets that you would want taken care of? If no one in your estate claims your pet immediately, it will most likely be put down. Having life insurance coverage can provide the funds necessary during that transition period to find a suitable home for your favorite pet.
An often-overlooked benefit of getting life insurance when you are single is that you are younger, and healthier than you will be in the future. This is a great time to get life insurance, as your lower premiums will be locked in for the entire length of the policy. You can always add more coverage as you get married and have children.