Life insurance is an important financial product for everyone to consider. While not everyone needs to have life insurance coverage, those who need it should be certain to have coverage and to have coverage in the proper amount. The right time to buy life insurance is when life changes create a financial obligation.
The primary event that mandates the purchase of life insurance is having children. A parent should purchase enough coverage to assure the financial support of the child through age 18 or even older in order to provide the child with a college education. Both working and non-working parents need insurance as the death of a non-working parent will necessitate child care to replace the services of the stay-at-home parent. Though a young couple with children might not have a lot of money, a low cost life insurance policy can be found to fit the couple’s budget.
Buying a Home
The purchase of a home using a mortgage is a serious financial commitment. If a person is married or has children, he or she needs to have insurance in the amount needed to pay off the mortgage in the event of an untimely death. A single person should also consider buying life insurance to cover a mortgage, but this is less of an issue if there is no one needing to live in the property if the owner passes away.
Obtaining Large Debts
When a married person or one who has children obtains a large amount of debt, life insurance should be purchased to cover this debt. An example would be if a person borrowed a large amount of money to buy a business. If a person passed away still owing this money, his or her estate would have to cover this debt before the person’s assets could be passed to his or her spouse, children or other heirs.
Life insurance can be used as a way to pay for final expenses. This includes funeral and burial costs. By buying a life insurance policy to cover these expenses, a person can avoid placing a financial burden on his or heirs at the time of death. Life insurance can also be used to pay estate taxes for those who have substantial assets that the government will tax upon death.
My first child is on the way, I guess I need to get a life insurance policy. Thanks!
I just found a deal on low cost life insurance to protect my family.