The following is a guest post about life insurance. If interested in submitting a guest post please read my guest post policy and then contact me.
Without adequate life insurance coverage, your family could be left with a huge financial burden if you were to unexpectedly pass away. We’ve compiled four guideposts to help you know when it’s time to get life insurance.
As a millennial, I don’t often find myself thinking about life insurance, or insurance in general for that matter. Nonetheless, life insuranceis one of the most important elements in your financial portfolio – it protects your family’s future well-being in the unfortunate case of an unexpected death.
If you already know you need life insurance, but find yourself overwhelmed by the complexities of this financial product, Sureify is a great place to get straightforward information. You can learn about the basics of life insurance and get a free personalized life insurance plan. For those of you who are on the fence about or are unsure when to get life insurance, read on.
In addition to the emotional hardship, the death of a family’s main income-earner has devastating financial impact on a family. Unfortunately, a lot of families lose their homes, default on loans, or file for bankruptcy after such a significant loss of income. Life insurance is designed to prevent such financial catastrophes from happening. It can be difficult to know when to get life insurance, but here are four guideposts to help you on your way:
1. You had a recent life event such as getting married, having a child, or purchasing a home
If you’re like me, you haven’t had to worry about kids or a wife (referred to as dependents) for the past 25 years. But of course this changes when you get married or have children. Amidst all of the changes that come with new life stages – home address, last name, medical insurance, updated driver’s license, car seat purchases, etc. it’s easy to neglect life insurance, but without adequate life insurance all of these exciting new life events are put at risk. Without additional financial help, it would be difficult if not impossible for your spouse to pay off the mortgage of your new home or put your newborn child through college someday.
Additionally, the more kids you have, the more coverage that you need (if you thought diapers were expensive, wait for college tuition). Protect your family and their way of life by getting adequate life insurance coverage.
2. You had a significant change in your income
If you recently got a big promotion or new source of income and your new income allows your family to enjoy a certain lifestyle, you should increase your life insurance coverage to reflect the income that enables that lifestyle (as opposed to the more humble income/lifestyle when the policy was purchased). Don’t be afraid to increase your coverage, most policies allow you to do this relatively easily and if you go with term life insurance it won’t break the bank either (usually just a couple hundred dollars more per year). You can also check to see if your employer offers life insurance, as this can be a less expensive way of increasing your life insurance coverage.
3. You have other people depending on your income
This one is pretty self explanatory, but if people depend on your income (even if you aren’t the head of household) every month – it’s wise to consider purchasing life insurance. Dependents could be your parents, a sibling, or even a friend that is on hard times that you support. Life insurance beneficiaries can be almost anyone of your choosing, it doesn’t just have to be your immediate family.
4. You’re reviewing and adjusting your financial portfolio
If you’re a brilliant financial wizard like some folks on Modest Money, then you probably already know to use your birthday as a reminder to check out your financial portfolio and make necessary adjustments. If you are not yet a financial wizard, take this one super-simple step to master your portfolio: every year, the day before your birthday, check your financial portfolio and make any necessary adjustments. This is also a perfect time to assess your current life insurance coverage based on any changes in the past year. If you had a child, a major change in household income, or bought a home, use this time to reevaluate your current life insurance coverage.
Remember that life insurance is a tool to protect your family financially in the unfortunate event that you pass away unexpectedly. Use these items as checkpoints for when it is wise to review your life insurance coverage. If you aren’t sure about what life insurance options are available to you, want a second opinion, or are unsure where to start, check out Sureify. They will help you learn about your options, estimate the amount of life insurance coverage that you need, and compare policy types – and you can download your personalized life insurance plan for free.
When was the last time you checked on your life insurance coverage?
Author Bio: Chris is a co-founder and head of marketing at Sureify. Sureify is a life insurance education platform for millennials where consumers can learn about their life insurance options, estimate their coverage needs, compare policy types and walk away with a free, personalized life insurance plan so that they’re equipped to buy with confidence. Sureify is devoted to providing consumers with unbiased, third-party education and resources on life insurance before they buy – no sales, just knowledge to empower them.