What are Your Life Insurance Needs

One of the common life insurance questions people ask is,”When should I take out a policy?” The truth is, no one really knows – everyone has different needs and circumstances so there isn’t really a clear cut answer. You may never even require a policy while your neighbor has had one since they turned 25. When people do get around to taking out their policy, they often wonder just how much protection do they actually require? You don’t want to waste money, but you want to make sure you family is provided for should anything happen to you. Again, it all depends on each person’s unique circumstances like the type of lifestyle they live and the size of their family. Here are some important factors to consider regarding when to get your plan and how much coverage you should have.

When Should You Start Thinking about Life Insurance?

• When you and your spouse begin a family
• After purchasing your first home
• If your parents or relatives rely on you financially
• If you want to leave your money to a charity or organization like your church
• After making a major financial commitment to someone, such as co-signing a lease

Needs and Factors

• Do you have a great deal of debt you’d be leaving behind if you passed away? Many times people don’t realize how much debt they’re leaving to their family to pay off, such as their auto loan, credit cards, and mortgage.
• Think about the type of lifestyle your family lives today and what it would take to continue living that way without your income.
• Does anyone in your family have special needs? Some children may not be capable of supporting themselves or may require expensive medical attention.
• Are your children planning on attending college someday? Even though it may be many years down the road, the cost of a college education continues to increase so you should account for this expense now.
• Do you or your spouse stay home to take care of the children? Believe it or not, a stay at home parent typically needs just as large of a plan as a working parent. Without their spouse at home, the working parent is usually forced to quit their job or pay for expensive day care services.

Additional Resources

• Life Insurance Needs Calculator
• How to Know if You Need Life Insurance