6 Simple Questions That Determine if You Need Life Insurance
Sales pitches tend to make people wary of life insurance. Itâ€™s easy to waive it off, like any other advertisement or junk mail, but that doesn’t mean that ignoring life insurance coverage is the right decision, especially for those with loved ones that could be left behind.
Uninsured individuals who are still on the fence, can answer a few basic questions which can help them determine whether or not they really need life insurance, without the sales pitch.
1. Are You Married?
If an individual has a spouse, itâ€™s likely that their significant other depends, at least in part, on the other’s income. Having enough life insurance to allow a spouse to live a comfortable lifestyle can give policyholders the peace of mind of knowing that their loved one is financially secure moving forward.
2. Do You Have Children Under Age 22?
College is expensive. A life insurance term that is long enough to cover children until age 22 can help pay for college expenses.
3. Do You Own a Home?
Although having a mortgage alone isn’t reason enough to buy a life insurance policy, those who would like to leave the home behind as an inheritance will need some sort of life insurance coverage.
Settling of an estate can take six months or more to clear probate court. However, life insurance pays out within days of the policyholder’s passing, giving families the money they need, while they settle the estate.
4. Do You Have a Disabled Adult Child?
Financially, disabled children can be dependent upon their parents for a lifetime. A child who cannot live independently during their adult years can benefit immensely in the event parents pass away, as life insurance coverage can help cover the cost of ongoing care.
5. Do You Have Aging Parents?
Aging parents need more care than younger, healthier adults. Even if Mom and Dad are doing fine right now, this can quickly change. Buy enough life insurance to cover costs, if parents should become unable to care for themselves in the future.
6. Are You Co-owner of a Business?
Business partners could lose everything if a partner passes away without life insurance. Consider the salary the surviving owner would need to hire someone to do their deceased partner’s job for at least a few years.
The younger and healthier uninsured individuals are, the lower their life insurance rate. This means that every day they delay purchasing life insurance, the costs of doing do in the future adds up quickly.