A certain type of person obviously needs life insurance and knows it – the sole breadwinner of a large family, for example.
But what about when it’s less obvious?
Here are five people who often assume they don’t need to worry about life insurance. However, yes, even these five people need life insurance:
If you’re single, young and healthy, now is actually the best time to make sure you have life insurance.
It will be comparatively easier and less expensive to get a policy at this point, and it can remain in place your whole life, regardless of future health issues.
There are two main reasons why employer-provided life insurance alone may not be enough for you and your family.
First, it is usually limited to an amount that wouldn’t cover everything you’d actually want it to – things like ongoing living expenses, paying down debt, college education for your kids, etc.
Second, an employer-provided policy is tied to that employer. If you part ways with your current company, you also part ways with the coverage.
A sole breadwinner typically couldn’t do what they do without a stay-at-home partner. That’s why a stay-at-home parent needs life insurance.
Without a policy in place, if something were to happen to that parent, the sole breadwinner wouldn’t have the financial protection needed for the family’s future.
Even if your kids are grown and moved out, if something were to happen to you, your spouse would still need life insurance for funeral expenses, daily living expenses and more.
When someone with a large estate passes away, there is often a lot of time (and money) involved with actually settling that estate, due to legal issues, the nature of liquidating assets, etc.
However, life insurance pays immediately.
If you’re one of these five people – or know one – perhaps now you’re wondering, “How much life insurance is needed?”
This is a great question and there are many online resources for helping answer it. For example, please see our “Here’s How to Calculate Your Life Insurance Needs [free life insurance calculators].”
If you’d like to speak with an SBU advisor about your life insurance needs and options, please contact us anytime.