When Do You Need Life Insurance?

When Do You Need Life Insurance?
Many people are unsure of whether they really need to invest in life insurance or not – and many who both should and could end up failing to do so.

When that happens, it’s the loved ones left behind who often struggle financially as a result, as final expenses, mortgage payments, and debts and obligations of the deceased mount and become unmanageable.

Once you’re sure you need life insurance, it makes sense to find out all you can about how life insurance works and how to get an optimal quote – but how do you know if life insurance is for you to begin with?

Who Really Needs Life Insurance?
The primary reason that anyone needs life insurance is to take financial care of anyone who relies on that person financially, after his or her passing away.

Most often, it’s a spouse and/or children who are the beneficiaries. But that doesn’t have to be so. Sometimes, you’re trying to protect a dependent parent or sibling should you no longer be there to provide for them.

More rarely, a life insurance policy could even be taken out with a business partner as the beneficiary, to protect the business from collapse if a valuable employee (you) were suddenly absent.

Finally, even if you have no dependents at all, relatives or friends will likely be handling your funeral and final expenses after your death. The cost of a funeral in the US now averages $7,000 to $10,000 – so it still makes sense to buy a simple “final expense” policy.

4 Poor Reasons To Avoid Life Insurance
Many people give “excuses” for not getting life insurance that don’t really hold up under scrutiny. Here are 4 of the most common less-than-convincing reasons for not taking out a policy:

1. I Can’t Afford Life Insurance
If you buy a term policy, almost everyone can afford at least some degree of coverage, and even a $25,000 or $50,000 death benefit is far better than none at all. Plus, you could always take out a less expensive policy until you’re able to afford a better one.

2. My Employer Provides Life Insurance
Many get life insurance coverage as an employee benefit, but you can’t take it with you if you change jobs. Plus, most employer based policies don’t really cover your full needs. It’s best to have an individual policy that stays with you wherever you work in addition to your work-based policy.

3. I Don’t Even Produce Any Income
Parents who stay at home to care for the kids may think life insurance is not for them. But the cost of child care and other services that stay at home parents provide is as valuable as cash income, and the family would feel the loss both financially and emotionally.

4. I Have Plenty Of Assets
Even if you’re pretty well off, the fact is, most people don’t have enough liquid assets to offset the sudden total loss of their income for the family. And after estate taxes kick in, you may not be leaving as much as you think to your loved ones – but life insurance benefits come tax free.

The simple fact is that most US adults would do well to invest in at least some life insurance. To find out more about how to craft a policy that fits your needs, feel free to contact Flagler County Insurance Agency today!