Originally Posted On: https://www.iquanti.com/
Life insurance is a tool that helps you protect the people who matter to you most from facing financial hardship if something happens to you. Everyone has different needs, so you may want to consider all the different types of life insurance to make sure you find the best fit for you. Here are some major life events that should make you consider life insurance coverage.
- Getting married
In any marriage, where partners share assets and financial responsibilities, it’s important that both spouses protect each other from facing financial hardship. Even if one spouse is a stay-at-home parent, it’s good to have a life insurance policy that covers the financial value they provide in terms of childcare, house cleaning, etc.
As a general rule, each spouse should have a life insurance policy that provides coverage for 10-15 times the amount of their income and/or financial contribution.
- Having a child
Whether it’s your first child or your newest, you’ll want to update your life insurance policy to accommodate for your newborn. Think about not only the financial cost of feeding, clothing, and looking after your child, but also their education, future, and wellbeing.
Some parents also like to get life insurance for their children to help plan for the child’s future and protect their insurability.
- Starting a business
Similar to a marriage, all business partners should ensure that their financial value is protected by life insurance so that they can protect their partners and the business from financial hardship. In some cases, partners will name the business itself as the beneficiary of their policy. This way if anything happens to you, your partners will be able to keep the business going and continue to pay your employee(s) in a timely fashion.
Many people assume that retirement is when you no longer need life insurance, but that’s not always the case. If your spouse and/or children still depend on you financially when you retire, it may be good idea to keep your life insurance policy or update it according to your family’s needs.
Life insurance is also a great tool for building and managing your legacy, especially if you expect to have a large estate. In many cases, those who have permanent life insurance will find great value in it both during and after retirement.
The bottom line
There’s no such thing as a bad time to think about your financial future, but during any significant life change or milestone, it’s always a good idea to revisit your finances and consider your options. Don’t hesitate to get in touch with a professional financial planner about your future–it’s never too early to start thinking and planning.