No matter what stage of life you are entering, life insurance is a product you need. Life insurance can have many different uses that help provide a benefit to you and your loved ones throughout the life of the policy. Here’s an overview of some of the financial concerns that come with the many changes you may face and how your life insurance can play a role in each:
Life insurance for the college graduate: After college, you will more than likely have some debt and it’s even possible that your parents cosigned on some of that debt for you. Federal student loans may be discharged after death but private student loans, that your parent’s cosigned for, will not. The same holds true with other debt they cosigned for including auto loans and credit card debt. In addition, locking in rates for your life insurance policy while you are young and healthy will serve you for many years to come.
Life insurance for newlyweds: As a newlywed, you will have new financial responsibilities to be concerned with. Your monthly budget likely depends on your income. That means without you, your spouse may not be able to handle the financial responsibilities alone. In addition, you may have more debt now than you did while in college and you may need to consider the long-term needs of your spouse as well. Life insurance death benefits obtained at this stage are likely to increase from your college days as your financial responsibilities are more significant and your salary is increased.
New parents and life insurance: When you add children to the equation, you create an ever-changing list of financial responsibilities that need to be handled whether you are there or not. From pre-school tuition to college, diapers to driver’s license, and dance lessons to doctor’s appointments, the financial obligation of parents is mind-numbing; and, when a wage earning spouse passes away he or she leaves the living spouse with debt and all the other expenses. Many couples take out additional, term life insurance, policies to help them get through these years.
Pre-retiree life insurance: As a pre-retiree, you are positioning yourself for an unknown number of years you plan to be in retirement. You are reducing your debt and putting every penny you can into your retirement fund for those long awaited golden years. What if you pass away before your spouse, though? Will they be able to handle pre-retirement debt repayment and post-retirement living expenses without the income that you will bring in over the next few years? Chances are good that they will need as much help as they can get, and a life insurance death benefit can give them that help.
Retirement and life insurance: Your retirement savings are a limited pool of funds that you likely won’t add to after you’ve retired. In fact, depending on how they are invested you could even end up losing some of your retirement fund. You have no idea how long this pool needs to last, and this can put a lot of pressure on a retiree who wants to leave a legacy to his or her family. A life insurance policy can create the legacy you want to leave without requiring aggressively spending your retirement savings. In addition, life insurance policies can be used for tax-free loans during retirement, although any portion of the loans that are not repaid before death can reduce the overall death benefit. Finally, life insurance proceeds do not need to go through probate (unless the beneficiary is the estate), which means that your relatives might have quicker access to the funds than they will their inheritance.
While your need for life insurance will ebb and flow, it is always present. If you can secure a policy while you are young and in relatively good health, this can mean that you have lower premium payments for the remainder of your life. As your bills grow, you can supplement your whole life policy with a term policy that covers you just during those years that your debt is at its highest. No matter how you decide to structure your life insurance plan, the ultimate truth is that you need one at every stage. Call us at 866-538-2544 for a free New Hampshire life insurance quote.