By Evan Parsons
It can be hard to know where and when to begin with life insurance. There are many different options to choose from, and sometimes the language can be confusing. A good place to start would be by sitting down with an insurance agent and evaluating your current situation.
Life insurance can benefit people at all different stages of life. The main reason to invest in a policy would be to cover others financially who are relying on your income.
If you are married and it takes both of you to cover financial responsibilities, life insurance would cover your half in case something unfortunate were to happen to you. When you begin to start incurring and paying on significant debt like a mortgage, life insurance can cover that too.
Starting a Family
When starting a family, it is better sooner than later to take out a policy for your children because the rates only increase with age. Other benefits to take into consideration would be to help pay for an illness that your child might develop or to cover any other expenses that might arise in your child’s future when he/she is older and have their own financial responsibilities.
Unforeseen Medical Issues
Even if you are single and debt-free, you may want to consider life insurance. If you choose to wait until you are older and develop a sickness, you may not be approved in the required medical exam.
If you have a parent, elder or incapacitated person that you are financially supporting, life insurance on you could help protect them. In terms of the benefits of insurance for the elderly, it may be a good idea to set up a plan for your parents, especially if they are still somewhat young and healthy. Life insurance would allow you to have a backup plan in the event something happens to them, and they are still covering your bills or helping you pay off debts.
Investing in insurance for yourself can help your family or friends pay for your funeral expenses as well. The last thing you want a close loved one worrying about at a time of loss is how to pay for the substantial expenses that often come with a funeral.
Overall, the main goal of life insurance is to help you build financial security to protect yourself and your loved ones.
TrustPoint Insurance Agent Jessi Boles says, “The younger you are when you start a policy, the better as the rates will be lower and locked in. If you choose a term policy as long as you keep up on the premiums, they will stay the same for the whole term. If you go with a whole life policy, they lock in at the age you are now, and as long as the premiums are paid, they will always stay the same.
She continues, “It is important to remember that life insurance isn't for you; it is to ensure those you love are taken care of when you are not around to do it anymore. I would recommend it to everyone. Parents and grandparents can start one for children that they can then take with them when they are adults, I can’t think of a better gift than peace of mind.”