Life insurance is often brushed to one side as something you don’t have to think about until you are much older. However, life insurance is actually a fantastic safety net during big moments of your life. So, here are the 8 most important times in your life where you will need life insurance.
- Having a baby
In having a baby, you are creating a life that is dependent on you for food, water, clothing, and of course financially dependent on you.
- Getting married
Partners who decide to get married will not only become joined in matrimony and by law, but their finances will become intrinsically linked. Therefore, taking out life insurance will make sure that your spouse is financially stable in the unfortunate case of your death. However, it is important to note that even though joint life insurance can be cheaper, this can be a problem if you were ever to get divorced, so you might like to stick to individual policies.
- Starting a new job
Starting a new job can be an exciting time, especially as it means you will be bringing in an annual income. However, this also means that you will become financially dependent on this income to support yourself and your family. Thus, if you were to pass away, life insurance will provide you family financial support to supplement the loss of income. You may be able to get group life insurance through your employer as part of an employee benefits package.
- Becoming a grandparent
If your family is growing, now is the time to make sure that they are comfortable financially if you were to pass away.
- Buying a house (and taking out a mortgage)
When you buy a house, it is likely that you will have to take out a mortgage. This is in effect a loan from a lending agency that you will have an obligation to pay back every month for decades. If you were to die, this debt can be passed on to your partner or inheritors, which if they can’t pay can lead to repossession. Thus, life insurance gives you the assurance that your family will be able to repay your mortgage even when you are gone.
- Setting up a business
Starting up a business involves making a lot of promises with investors, business partners, customers, employees, stockists, and so on. Therefore, in the event of your death, life insurance can help your business to stay afloat and protect stakeholders.
- Looking after dependents
If you look after at-risk dependents such as elderly parents or relatives with a disability, life insurance can guarantee that they will be financially stable in the event of your passing. This money can be used to hire a carer or move into assisted living, keeping them safe and looked after for years to come.
People who get to a certain age in life will typically retire. At this point, your income will be provided by your pension and your lifetime’s savings. If you are having to live on your savings, this can leave little in the way of an inheritance for your loved ones. In this sense, life insurance can guarantee a payout for your dependents even if you have had to access the majority of your savings.