2020 is sure to go down in history as ‘the year where anything could happen’. We’ve already seen mystery drones and ‘Murder Hornets’, what could possibly come next? Whatever the future holds, it’s important to be prepared. When something unexpected happens to your home, car, or well-being, having health, home, or auto insurance leaves most feeling safe and protected. But what should you do when the unimaginable happens?
If you are a working adult with financial liabilities, a spouse, or children, you should consider buying a life insurance policy. In a recent study by Policygenius, 71% of parents who have private life insurance said they felt financially prepared to have a child. In most cases, children are the most affected by the unexpected loss of a loved one, as they are often financially dependent on that person. By both spouses having a life insurance policy, your children are protected and your mind can rest knowing that things are taken care of with or without you.
In addition to protecting your family from unexpected loss, a 2019 report from trade research organization LIMRA attributed several other common reasons Americans said they bought life insurance: income replacement, burial expenses, wealth transfer, mortgage pay off, tax investment, asset liquidation, college education funds, as a charitable gift, or for business purposes.
Not All Coverage Is the Same
It’s not common for employers to offer life insurance, and oftentimes when they do, the coverage isn’t very robust and rarely provides enough coverage to support a whole family. If you’re a part of the lucky one-third of Americans that have group coverage by their employer, it might be worth still checking into exactly what said policy covers. Investing in a private life insurance company will guarantee coverage during job transitions and can be tailored to meet the needs of you, your spouse, and kids.
Things to Consider When Buying
The great thing about purchasing a life insurance policy early on and proactively is that you are ultimately investing in your long term health and financial health of your family. Many policies offer different incentives and types of coverage should your health change or quality of life become something to consider. For example, if you want the option to get cash out of your life insurance policy after a cancer diagnosis or need end-of-life care, then looking for a company that offers this option is a great step to consider.
Many people assume that their investments are permanent when it comes to life insurance, but with newer companies that strive to remain at the forefront of consumer consideration that just isn’t the case. Several companies will provide 20- or 25-year windows where your premium can be returned if you no longer want or need the coverage.
With that in mind, waiting to buy coverage isn’t doing you any favors either. The rates you’ll pay for coverage will go up every year, especially if they look anything like 2020 has so far. The sooner you buy, the better chance you have at affording the level of coverage you need. Now is the time.