Life insurance when you are young
It may not be pleasant to think about, but have you considered how your family would survive financially if you were to die prematurely? When you're young and healthy, the last thing on your mind is the thought of dying young. But life can be unpredictable. And while the probability of dying at an early age when you're healthy can be low, have you thought about the financial consequences if it happens to your family? Life insurance is about having the protection you need, when you need it.
A good example would be having auto insurance. Even though you are an excellent driver and don't anticipate getting into an accident, you still buy coverage to protect your car. In other words, you're prepared if an accident happens. The same principle applies to having life insurance, except you're planning to financially protect the people who may depend on you for support. And, the younger a family is, the more protection you generally need.
Life insurance as you get older
Many people in or nearing retirement may be unsure as to whether life insurance is necessary especially if you now have kids that are grown and no longer depend on you for financial support. Making the decision to maintain or buy a life insurance policy as you get older generally depends on the answers to the following questions:
- If you were to die, would someone you love experience a financial loss? For example, does your spouse continue to be financially dependent on you or children with special needs?
- Do you have a large estate and are you concerned about tax liabilities that may substantially reduce an inheritance for the people you love? A life insurance policy can help your heirs cover this financial commitment.
- Do you have a family business that you would like to continue after you die? The benefits from a life policy may be able help cover any commercial debt liability that you may have so your family isn't forced to sell the family business.
Whether you are young or old, picking the right type of life insurance can be an important part of financial planning. Learn more about the different types of life insurance available for nearly every need.