Life insurance is always a challenging thought to confront- the idea that you have to pay to protect yourself in the event of your death is a grim concept, but it is also a necessary one. Remember, in the best case scenario, you will never have to use it- but if you do, it can be what stands between your family and financial destitution. Life insurance in general should be a large part of your insurance strategy, and there are many versions of insurance to consider. However, if you have not yet established a life insurance policy, there are three major life milestones that should lead to thinking about your policy.
- Buying your first home
When you buy your first home, it can be an adrenaline rush. It is a major goal for most people, up to 75% in the United States, but according to a report from the Federal Reserve Bank of New York, the amount of home-secured debt the average 65-year-old was still paying off had increased 47% since 2003. If your family loses your income, the payments for your house could prove to be too much to bear.
- Getting married
Marriage is another part of most American’s lives that makes it vital to have life insurance. If you get married at an early age, student debts are often a large financial weight on the surviving spouse. Even if there is no debt involved, the average cost of a funeral can be over $10,000.
- When you have a child
Children are often the best part of anyone’s life, but they are also the most expensive part of anyone’s life. From birth to age 17, the USDA says that the average cost of child rearing is over $200,000.
There are many ways life insurance can prove to be a benefit to you and the people you love, and assuming you choose the right insurance, it can be surprisingly affordable. Choose a good term life insurance policy that will cover you throughout the period you will be most financially at-risk, such as the period of time from a child’s birth to age 18, or when you will be paying off the majority of your mortgage. Talk to your financial counselor and take all the possible factors into consideration before you make any decision about your financial future.