Have you asked yourself lately, do I need life insurance? The short answer is yes, you do. But some have asked why do I need life insurance? Life insurance needs change just as life changes and significant events—like getting married, buying a house or having a baby—make the need for life insurance even more important. Below you’ll find some life events that should have you buying or re-evaluating the coverage you have, to make sure it’s the right amount for your changing needs.
4 Life Events That Increase Your Need For Life Insurance
Are You Getting Married?
Married people often mistakenly believe they won’t need life insurance until they start a family, but even in a marriage without children, spouses generally depend on one another for financial support and many couples contribute equally toward household expenses. If one spouse dies unexpectedly that could put an enormous financial burden on their survivor, who will be solely responsible for all the household debts including credit card bills, car payments and rent or mortgage payments.
When you ask yourself, “Do I need life insurance?” consider this: without your income, would your surviving spouse be able to sustain the life you’ve built as a couple? If you die, life insurance can be used to replace lost income, allowing your spouse to maintain their standard of living.
Are You Buying a House?
A house is usually the largest purchase a person will ever make and their mortgage can be the single largest debt they will ever have. Once you become a homeowner, life insurance ensures that if you die, there will be enough money for your survivors to continue making the mortgage payment. If you have a cosigner—like a spouse or parent—your death will leave that cosigner responsible for the entire mortgage, and that’s not likely to be a debt they can shoulder alone. If your spouse and children live in the house, life insurance will give them the financial resources to stay in their home and maintain their standard of living.
Are You Starting a Family?
Life insurance is a must-have for couples starting a family and as that family grows in size, the need for insurance increases. Families where only one parent works outside the home are completely dependent on that parent to provide all the family’s financial support. Without life insurance, that parent’s unexpected death could have disastrous consequences for the family. If the stay-at-home parent dies without life insurance, their death would also create a large financial burden for survivors, who will have to pay childcare and housekeeping expenses. That’s why both parents should carry enough life insurance to cover lost income as well as the dollar value of lost services. Even when both parents work, it’s unlikely that the surviving parent would be able to keep up with household expenses—including additional child-care – relying solely on their income.
Supporting Aging Parents
Your children might be out of the nest and on their own, but your aging parents may be depending on you to care for them. You aren’t alone – nearly 10 million adult children over the age of 50 care for aging parents and many elderly parents depend on their adult children’s income for some or all of their support. Having adequate life insurance coverage ensures that should you die, your parents will continue to be cared for and supported.
In light of these possible life events, the question really isn’t “Do I need life insurance?” it’s “How much life insurance do I need?” No matter how many twists and turns your life takes, iQuotit.com insurance agents are here to help you find the right coverage and best plan for you and your family. Call us 24/7 at (888) 411-5333 or meet with one of our 3,000 local, licensed life insurance agents.