Reasons why you may need life insurance, even if you think you don't
Reasons why you may need life insurance, even if you think you don't. No one likes to think about the moment when they will die, especially young people.
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No one likes to think about the moment when they will die, especially young people in their 20s. But life insurance can financially protect your loved ones in the event of your passing.Most people see life as a series of important milestones that need to be achieved, from building a successful career to starting a family, purchasing our own home, and then retire. But, as much control as we like to think we have over our own lives, the inevitable can happen at any time. So, even if we don’t like to think about our deaths, it’s important to think of what may happen to the people we leave behind. Now, most people also don’t typically think about their death and life insurance, especially in their 20s. However, that’s actually the best time to buy life insurance. Typically, your health and age when you buy a policy determine how cheap life insurance will be, at least that’s if you don’t have a high-risk job or love extreme sports, but we’ll talk more about that later. So, a small monthly cost for your family’s financial stability in your absence. We think that cost is worth it. What do you think? If you don’t already have a life insurance policy, here are a few reasons why you probably need one, even if you haven’t thought about it.So, planning to start a family is a serious reason to set up a financial safety net before having kids.According to 2018 data from AARP Public Policy Institute, over 6.2 million millennials and counting are caring for parents, in-laws, or grandparents. These relatives also need protection if you are the one who financially supports them. Suppose you are supporting your aging parent or another relative financially. In that case, a life insurance policy will ensure that they will not be left with no money for your funeral expenses or personal expenses in the case of your passing.If you own your own business, do you ever think about how your employees or key stakeholders will be paid if you unexpectedly pass away? We get it. It’s not something you want to think of, but it’s only the right thing to do when you have people working for you. Life insurance policies allow you to set up a “key person” that will ensure that your employees will still get paid from your life insurance in your absence.Your debt doesn’t necessarily disappear when you pass away, meaning that your family will become entirely responsible for repayment in your absence. For example, federal student loans are forgiven if the person who took it passes away, but most private loans might not be, remaining a responsibility of the family, spouse, or legal tutor of the person who took it and passed away. So, if you have debt, be it mortgage or student loans, make sure that you consider the total debt amount when you decide on the coverage amount for your life insurance policy.We’ve promised we’d discuss more the connection between life insurance costs and having a high-risk job. So, here it is. When asking for a life insurance policy, most, if not all, companies will take your occupation into consideration to assess your risk level before giving you a quote. Here’s the deal: the riskier your job is, the greater chance of dying you have compared to, for example, someone who sits at a desk eight hours per day. What are the high-risks jobs? Well, jobs in industries like aviation, construction, firefighting, or mining are only a few examples of high-risk work environments.Yet, even if the life insurance policy might be more costly than it would be if you’d work in an office all day long, the high risks connected to your job alone make having a life insurance policy worth it. If you have a high-risk job and you think about purchasing a life insurance policy, we also recommend getting a disability insurance policy to protect yourself and your family against temporary loss of income.Having a high-risk job isn’t the only thing life insurance companies consider when assessing your risk level. They also consider whether or not you are a thrill-seeker. Love climbing the mountains? You ride a motorcycle every day? Or maybe you practice parachuting? You’ll likely pay more to get life insurance. So, if you are a fan of extreme sports, and you’re also financially supporting your family, a relative, or your business’s employees, getting a life insurance policy simply makes sense considering the likelihood of dying from unnatural causes.
You’re planning to start a familyIf you are planning to start a family in the next year or so, now is the best time to look for the best life insurance companies and buy a policy. Even if you don’t want to think about the moment when you’ll pass away, one thing is for sure: as you get older, your health will start to decline. So, the longer you wait before buying a life insurance policy, the greater the eventual cost of it. What’s more, when you and your spouse are both taking care of your child, that’s two incomes. Yet, in the event of your passing, your spouse will have to manage caring for your child with only one income.