Life Insurance Planning Based on Events in Your Life
It has often been said that life insurance is fundamental to smart financial planning. As you take on more responsibilities, your need for financial security increases. Each change in your life increases the importance of updating your life insurance coverage. Life insurance gives you confidence that your dependents are financially secure, your funeral and medical costs are covered and your future is protected by savings.
Listed below are some of the important milestones you may encounter during your lifetime and their impact on your life insurance policy.
After walking down the aisle to exchange your "I Do's," you need to plan for your future as a couple. You and your spouse are now financially dependent on each other in a way you weren't when you were single. Since the cost of living today is much higher than when previous generations got married, many couples now have two-income households. If something were to happen one of you, would the other be able to pay for car loans or mortgages, provide for the family's children and adjust to a new life? Buying a term or permanent life insurance plan can help you make sure these financial obligations are met in the event of a premature death.
Having a Baby
There is no greater gift and experience than the birth of a child. From baby's first breath to college graduation, being able to provide for your 'bundle of joy' is one of the most important decisions you can make. If you or your spouse were to suddenly die, would there be enough money to pay for your child's day care, daily necessities and college tuition? Providing for your dependents is your first priority, and a solid life insurance program can keep them financially secure.
Buying a Home
Your biggest investment will most likely be the purchase of your first home. The last thing your family will want to do is surrender your house to the bank if you pass away. Providing for the payoff of the mortgage, utility payments, property taxes and home repairs through a life insurance policy will make it easier on your loved ones, in the event tragedy strikes.
Changing Your Marital Status
Death or divorce can impact your financial priorities. If your marital status changes, check your life insurance policy to determine if it's still relevant, needs amending or is no longer needed. Important items to include in your assessment include your personal income and financial responsibilities, and the identity of your beneficiary in the event of your death. If your spouse is no longer alive or a part of your life, make sure your policy reflects this change.
Retirement planning is more than mutual funds, IRAs and 401(k)s. A premature death or unplanned disability can interfere with your retirement plans. Remember: plans without life insurance are just savings accounts that terminate when you do. A permanent life insurance policy will give you the flexibility to surrender the policy and supplement your income with the funds that have accrued in the policy's cash value account.
Any change in your life will require a reassessment of your life insurance needs. The licensed agents at Spectrum Direct can answer any questions you may have and tell you about the best way to protect your loved ones.
Have questions? Call us, we're here for you 1-800-438-7343
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