Do You Need Life Insurance?
So, is a life insurance policy right for you? Here are some questions to help you assess your potential life insurance needs:
Is there anyone in your life who relies on you financially?
If you have anyone who depends on your income, such as a spouse, partner, children or other loved ones, a life insurance policy could provide financial security for their future. To understand how life insurance can be beneficial, consider how the loss of your income would impact the people in your life.
Do you plan to get married or have children in the future?
Even if you aren't financially responsible for anyone right now, if you think that might change at some point, there are benefits to starting a policy sooner rather than later. For example, usually, the younger and healthier you are, the easier and more affordable it is to obtain coverage. If you wait to purchase a policy, the cost could go up or your health could change, which could affect your ability to qualify for a policy.
Do you have any debt?
Any debt you've accumulated could possibly still have to be paid by someone after you're gone. From student loans and credit cards to mortgages and medical bills, you're loved ones may be faced with having to pay back your debt if something were to happen to you. A life insurance policy could help provide the means for them to continue to make payments on your behalf.
Would your funeral be a financial burden?
While it may not be something you've considered, funerals and burials can cost thousands of dollars. A life insurance policy can help cover your final expenses, so it won't be left to those grieving your loss to come up with a way to pay. The death benefit can also be used towards things beyond the basics, such as covering the costs for people to travel to attend or reestablishing an emergency fund for loved ones.
Do you own or run a business that might fail without you?
A life insurance policy can benefit business owners by covering any business debts or unexpected costs if they pass away. In fact, the death benefit can also be used to pay severance if the business must close, cover the costs of hiring someone new to run it or buy out a partner’s spouse if needed.
Are you planning to retire one day?
A permanent life insurance policy can be a useful strategy for supplemental retirement income. These types of policies have the ability to accumulate cash value over time, so it can act as a long-term savings account by providing the opportunity to make a withdrawal from that cash value or take out a loan against the cash value of the policy.
As you consider your life insurance needs, know that we are here to help. Insurance Agent, Joe Yates, can answer questions specific to your individual situation and guide you in building a policy that best fits you and your loved ones' needs. If you'd like to learn more about life insurance, you can read about other topics on the Empower Blog, including the policy basics and estimating your coverage needs.