No matter where you are in life, one thing is certain: If someone depends on you financially, you probably need life insurance. Why? Because life insurance provides critical financial support in the case of your premature death – so loved ones won’t be left wondering how to pay the bills.
The Young College Grad
Congrats, you’ve earned your degree! Did you also acquire some student loan debt? A small life insurance policy for the amount of your loans can help ensure no one else is burdened with that debt in the event of your death.
What would happen if suddenly one of you weren’t there? Would that cause financial hardship for the other person? A life insurance policy to replace your income for a number of years (generally 6-8) will help your spouse handle financial burden from your death. Plus, premiums are less expensive for young people in good health.
In the event of your death, life insurance can provide a tax-free death benefit for your beneficiaries, allowing them to replace your income that may have helped make the mortgage payments. Or the death benefit could allow your beneficiaries to pay off the outstanding balance and be mortgage-free.
If your paycheck provides for your children, chances are they would suffer financially if you were to die unexpectedly. In fact, according to research, 48% of families with children admit they will have trouble meeting everyday living expenses if a primary wage earner dies. A life policy can help replace your income and alleviate some of that burden for your beneficiaries.
The Business Owner
When a person dies unexpectedly, the loss of life often has repercussions beyond just immediate family. This is especially true if the individual was a business owner or a key member of a company. Life insurance for your business could play a huge role in the company’s recovery and survival. A life policy can guarantee remaining owners can buy out your company interest from your heirs in the event of your death. It can also cover a key employee, providing the business with the financial ability to replace him or her, or make other plans in the event of their death.
The Empty Nester
If your kids are grown and your mortgage is paid off, you may think your need for life insurance has passed. But consider this: if you died today, your partner could outlive you by 10, 20 or even 30 years. Would they be left wondering how to manage financially after you’re gone?
Source: Liberty Mutual