Having life insurance can mean the difference between your family staying financially secure and going into debt in the event of your death.
Knowing when you should get life insurance can provide the stability your family needs if you die unexpectedly.
When should you get life insurance, and what kind should you buy? Let’s explore this topic in-depth.
When Should You Get Life Insurance?
While you might feel like you don’t need life insurance, certain life events increase the odds that a life insurance policy could benefit your family.
The answer to when should you buy life insurance, doesn’t always depend on your age.
Some people think that they don't need life insurance until their 50s, when they should get it in their 20s or 30s.
Your need for life insurance depends more on life events than your age.
Once you have people in your life who rely on your income, you need life insurance to protect them.
Certain life events change how you distribute and use your income, which means you need to ensure that your family still has income if you are no longer there to provide it.
Consider purchasing life insurance if you have or plan to go through these life events.
When You Are Getting Married
For many people, marriage means sharing finances and expenses. If you can’t afford to live in your current situation with only one income, you need life insurance.
Life insurance supports your spouse in the event of your death, whether you purchase it at 25 or 45, and reduces the uncertainty associated with covering living expenses after losing one.
When You Have a Baby
You might consider buying life insurance when you have a baby, especially if your spouse is a stay-at-home parent.
For example, if your spouse goes on maternity leave, your income supports your family.
Life insurance ensures that your rent or mortgage gets paid, and your partner has enough money to care for your child.
If you have more children in the future, you might consider increasing your coverage to accommodate their expenses.
When You Get a Divorce
If you don’t have children, you probably don’t need life insurance when you get a divorce.
However, life insurance can protect your children, even if you don’t want your spouse to receive your death benefit.
If you have a revocable beneficiary, you can remove your ex-spouse from your life insurance policy and designate a new beneficiary.
On the other hand, some policies have irrevocable beneficiaries, meaning that whomever you name as your beneficiary stays until your policy matures.
In a divorce, many children have one parent who financially supports them or supports them more than the other.
Life insurance can help guarantee that your children continue to have financial stability if you die unexpectedly.
When You Send Your Kids to College
Life insurance can prove essential if you die while your kids are in college. It can offer a better option than a 529 plan, which many parents choose to support their child’s education.