Life insurance can be a confusing and challenging subject to think about. However, it’s one of the most important decisions you’ll make in your lifetime.
If you have a family depending on your income or care for someone who depends on yours, life insurance is essential for protecting their financial future.
The cost of life insurance changes throughout your life; so, it’s best to buy as early as possible when rates are lowest.
In this article, we’re going to cover four reasons why you need life insurance.
1. You’re building a family and soon having a baby.
If you’re planning to have a baby in the next year or so, now is a great time to buy life insurance.
As everyone knows, our health tends to decline as we age. Meaning, the longer you wait to buy a policy, the higher the costs can get.
So, if you’re having a baby soon and are planning on being at home with your new bundle of joy for an extended period, then buying life insurance is even more crucial.
This is because, in addition to losing one paycheck, there’s also no childcare available without paying for it out of pocket — which can be prohibitively expensive.
Buying life insurance now may help cover expenses so that when both parents or guardians die unexpectedly, their children won’t needlessly suffer financially and emotionally from this loss.
2. You support your aging parents financially and emotionally.
You might want life insurance if you have aging parents who depend on you financially. It can also be because of a sizeable infirmity of your own (such as chronic illness) that limits your capacity to work. This would be the time when life insurance may also be necessary.
3. Your occupation and hobbies are high risks.
Life insurance companies will always consider your occupation and hobbies when they assess your risk level. Simply put, if you work in a dangerous or high-risk environment, you have a greater chance of dying than someone who sits at a desk all day.
Life insurance will also be more expensive if you are a hobbyist who engages in dangerous or high-risk activities. For instance, people who skydive might not qualify for the same level of coverage as an individual who loves and frequently reads books.
4. You carry a great deal of debt.
If something unexpected were to happen which prevented you from working, your living expenses might not be covered by savings or with income from a substitute job. Life insurance could pay out years’ worth of your monthly payments to help your family maintain the lifestyle they are accustomed to.
Paying off your mortgage before you die is essential for several reasons. If you don’t have life insurance, this one last debt will become the responsibility of your spouse and any intestate heirs. Life insurance can cover these expenses for your family.
Is Life Insurance Worth It?
The decision of whether to get life insurance or not is personal. But even if you think you don’t need the coverage, it can never hurt to get a quote and explore your options. Life insurance is not only for death benefits but also provides financial protection in many situations, including disability or critical illness.
Northwest Insurance Agency can help you compare life insurance policies to find the right coverage for you at the right price. Contact us today.