As a young person who is single and lives alone, there isn’t any need for life insurance but as time goes on, you get a girlfriend, get married, and now you have children. This brings up the question, “At what point in my life do I have to consider life insurance?” In this blog post, we will be taking a look at 3 signs that suggest you need life insurance.
Life insurance can help your family live comfortably and also pay off debts if you should suddenly die. Without further ado, let’s dive into the three signs you should watch out for.
When you have a family
Unlike when you were single, if you now have a family and people depending on you for survival, it’s a good sign that you need life insurance. It’s usually an even better practice to get a life insurance cover well before a baby is on the way. The reason for this is because when you are still young, getting coverage is much cheaper than waiting to buy it later because as time goes by the coverage becomes more expensive.
When you own a home
If you have recently bought a home, it’s a good sign to get life insurance to help in covering for the mortgage debt and also pay for home expenses.
It’s even a greater sign when you are the sole breadwinner of the family. If something were to happen to you (the breadwinner) of the family, life insurance will help in catering for the house payments so that your family won’t have to be forced out of their home because they can’t keep up with the payments.
Asides from helping out in paying your home’s mortgage balance, the same principle applies to other large debts. Just because the breadwinner of the family dies, that doesn’t mean that the private student loan debt that was taken or the credit card debt will go away. In such a scenario, someone else just has to become responsible for it. Hence the spouse or the co-signer will be held responsible for the debt. If you already have life insurance in place, the payout can be used to cover such debts.
You need life insurance when you earn an income
Your income determines how much life insurance you can get. When it comes to income and life insurance, as you get promoted and begin to earn more, it’s usually best to increase your life insurance alongside. The reason for that is, once your income is raised, your lifestyle and standard of living also change. In an event where you should pass away, the life insurance you bought would be able to replace the lost income.
Now you know the signs to look out for, are you thinking of purchasing life insurance for yourself? If you are, then you must ensure that you choose the right type of insurance policy. A lot of people get ahead to get a life insurance policy and end up selecting the wrong type of insurance policy. Money line can help you compare life insurance policies so that you’ll be able to get the right coverage for you at the right price.