The question of who needs life insurance nags at all of us the moment we hear the term.
A plan that pays out a benefit when we die? Sounds like a nice thing to have. But do I need life insurance if I don’t believe I’ll die anytime soon?
There is rarely a one-size-fits-all explainer for whether you’ll need life insurance. Your best bet is to review the basics of life insurance with an insurance professional, as well as the various situations that may apply to you.
Do I need life insurance?
The most useful way to answer the question of whether you, specifically, need life insurance is with another question: Would your death financially impact the people in your life? If the answer is yes, then you should consider life insurance.
When is it good to have life insurance?
If you die unexpectedly, and your death would leave important people in your life on the hook for debt, or unable to pay their bills, or saddled with expensive costs, life insurance can make sense for you.
Who doesn’t need life insurance?
If no one in your life would be financially harmed by your death, you can likely put off investing in a life insurance policy. For now, you may find that saving and investing your money in other assets — stocks, bonds, your retirement funds or real estate, perhaps — is a better move.
Keep in mind that the younger and healthier you are, the more affordable your life insurance policy will be. If you see major life changes on the horizon, it may be worth exploring your options in order to lock in a good price at the right time.
What about life insurance through work?
You may be lucky enough to receive life insurance through your employer, known as group life insurance. If your employer offers this coverage for free as a benefit, there’s little reason not to accept it, even if the coverage isn’t as robust as you would like. Many policies, though, terminate when you leave that employer.
To review your life insurance needs, and decide if you need life insurance, how much, and the right type, give Tom Heath at AIC Insurance a call at 509-764-4447. We will help you decide what is right for you and all of the people that matter to you.
AIC Insurance- with offices in Moses Lake and Quincy, we are your local insurance agents.
