Milestones that trigger the need for life insurance
Life moves quickly. As we go from one milestone to another, our circumstances change — and so do your life insurance needs. Here are a few milestones that could affect your need for coverage and/or warrant a review of your current policy.
Got married If you’ve recently said, “I do,” you’ll need to start thinking about the future of your new family — a part of this is financial planning. Your new, merged lifestyle and possible additional income can inevitably lead to more expenses — higher rent and a car payment for example. However, life can change unexpectedly. You and your spouse should think about your current expenses and income, and make sure you both have enough life insurance for income replacement.
- Quick Tip: Divorce While more marriages are successful, about 39%1 of American couples divorce. At the time, they may not be thinking about their life insurance. If this happens, reach out to your licensed insurance professional to assess your coverage needs and your designated beneficiaries.
Bought a house Buying a house is a major milestone in your life, and it will be one of your biggest assets and investments. So, why not protect it? Life insurance can help cover your mortgage debt if you or your spouse would not be able to cover the cost alone. It can also help cover other house-related expenses like maintenance, repairs, utilities and property taxes.
Had a baby Having a baby changes your life for the better, and your priority becomes doing whatever it takes to protect your children. According to USA Today2, for a middle-income family, the cost of raising a child today is $233,610 — excluding college. This is a substantial cost that you may not be able to afford alone. Consider how more life insurance can help protect your income and prepare you for any curve balls life may throw your way.
Became a new business owner If you’ve started an entrepreneurial journey, life insurance can help ensure that your business and employees can continue growing if something happens to you. This is especially important if you’ve funded your business with loans or family assets, like a home, as collateral.
Also, if you own a family business, talk with a business planning professional about establishing a business succession plan. These are typically funded with life insurance and can help ensure that your business passes along seamlessly to the next generation of owners.
Started a new job As you make career advancements, like many Americans, you’ll probably enhance your family’s lifestyle. When you earn that promotion, your expenses may increase. To help protect your family as you succeed in life, it’s wise to have an insurance professional review your life insurance policy so your loved ones can continue to live the life you’ve planned for them — even if you’re not there.
To find out how much life insurance you may need, click here.
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