Life insurance policies are essential as they offer several alternatives for debt repayment, income replacement and estate planning for your family. Your demise could cause financial trouble to your dependents and could hurt their future if you will not protect them with life insurance policy.
Despite the obvious advantages of life insurance to a person’s financial security, many people do not show attention to the significance of this insurance product. Clearly, many don’t even consider buying a policy to secure their future. But no matter how they try to dodge life insurance, it will remain as a necessity for people with financial dependents.
One shouldn’t just buy a life insurance without clear motivation or reason for acquiring the policy. There are some events or point in an individual’s life when getting a life insurance should be planned carefully. Normally, the idea of acquiring a policy emerge when financial responsibilities increase, such as marriage, birth of child or home purchase. It is also advisable that you buy a life insurance at a young age as rates are more affordable and coverage is easier to get.
Marriage
Marriage is a significant stage of any person’s life. It is also a notable time for you to think about buying a life insurance. For some people, this is the first time when they have somebody else relying on them financially and a financial problem could arise at the time of their death. A lot of people are still young at this phase, which normally makes them become more insurable.
No Coverage At Work
There are companies that provide life insurance as employee benefit. For employees who do not have insurance coverage or in case your employer reduce this from your benefit package, it would be prudent that you to obtain an insurance policy to secure your family’s future. In case you lose your job, you also need to buy purchase replacement coverage.
Birth Of A Child
One more reason to buy life insurance plan is the birth of your child. This generates supplementary living expenses that must be covered in case your other half passes away. Having children also requires you to have sufficient funds on hand for your child’s education. Keep in mind that as a family gets bigger, the demand for life insurance coverage also increases.
Home Purchase
Acquisition of life insurance should also be considered when a new home is bought. The death of one spouse leads to the foreclosure of their home because the surviving spouse can no longer pay for the mortgage. One accessible option for people is to buy a term insurance policy. The face value of this sort of insurance policy drops off as the mortgage declines.
When Other People Count On You to Support Them Financially
There are instances when elderly parents depend on the income of their adult children at the time they reach their retirement age. If you want to ensure that your parents continue to obtain financial support in the event of the child’s death.