Considering life insurance? Here's who should act now
Most financial advisers agree that life insurance is an integral part of sound financial planning.
In exchange for an inexpensive fee each month (often cheaper if paid annually), policyholders can rest assured knowing that their loved ones are safe in the event of their death.
Depending on the type of life insurance policy and coverage amount chosen, beneficiaries can receive hundreds of thousands of dollars. Many insured even have policies of $1 million or more. These payouts can help pay off mortgages and student loans or simply be used to maintain a certain standard of living.
The benefits of having life insurance are clear. And yet many American adults don't have any life insurance at all. Many others, particularly younger people, are often underinsured.
Thankfully, it's easy to rectify this. If you're in the market for life insurance, or simply want to boost the coverage you already have, reach out to a life insurance expert now who can help get you started.
Here's who should buy life insurance now
As mentioned, financial advisers agree that most American adults should have some form of life insurance protection in place. There are certain groups, however, who would benefit more than others. Here are three to know.
Parents of young children
If you're a mother or father to young children and don't have life insurance then you should act quickly to get a plan in place.
Why is this so urgent? Do the math. You have decades of earning potential in front of you. You have years, if not decades, of child-rearing costs to account for, too. If something should happen to you then who will make up that financial burden? A robust life insurance policy can fill in the gap left by your absence. You won't have to worry about utility bills, school tuition and other essentials. With life insurance in place, your children will have the support they need now and in the future.
You can get a quote today so you know exactly what to expect with a new plan.
Homeowners with mortgages
If you have a mortgage - and live alone - then you may be able to skip life insurance (or reduce the amount you have). But if you have an existing mortgage payment to make each month - and have one or more people living under the same roof - then you'll want to make sure you have a comprehensive plan in place.
Mortgage terms are usually either 15 or 30 years. If something should happen to you before that loan is paid off you'll end up putting your dependents in an untenable position. Even if you're splitting the mortgage each month with a partner or spouse you'll still want to make sure your half is covered.
Life insurance can be used for a variety of things, but paying off a mortgage is at the top of the list. Accordingly, make sure you have enough coverage to pay off the balance in full.
Business owners
If you own your own business - and want it to continue after your death - then you should make sure to have a life insurance policy in place.
In the event of your death, your business could be subject to an estate tax (something which can be paid with a life insurance policy). You can also ensure that expenses and payroll normally covered by what you were bringing in each month can continue to be paid as normal.
A life insurance policy may not be a permanent fix to any issues that arise if a business owner dies. But it can smooth the path forward as family members and employees work toward a more permanent solution.
Make sure your business stays afloat - set up a life insurance plan today.
The bottom line
Life insurance is advantageous for millions of adults - not just the ones listed above. Maybe you don't require as much coverage as those who fall into the aforementioned categories or maybe you want a robust plan to protect your loved ones for years to come anyway.
It's best to speak with a life insurance agent who can help you build a plan that works for you and your long-term financial goals.
