Life insurance is part of a responsible financial plan. There are a handful of situations where you may need life insurance more than you thought. It’s important to us that you and your family feel prepared during these milestones so we’ve compiled the following list of critical times in life that you need life insurance the most. Getting married, having a child, buying a home, and starting a business are the four most common.
When you get married, financial obligations become a joint effort. If one of you dies, a life insurance policy can help ensure the surviving spouse has the financial stability to maintain their current standard of living. Additionally, as the cash value in a permanent policy grows, more assets become available to pay down a mortgage, eliminate business debt, or settle outstanding tax obligations. Death benefits paid to the surviving spouse can also help fund a child’s education or supplement retirement.
Having a Child
When your children are young, having sufficient life insurance for each parent is critical. If you or your spouse were to suddenly die, life insurance limits need to be able to pay for daycare, help fund a college education, and cover everyday living expenses.
Buying a House with a Mortgage
Life insurance is often purchased in amounts sufficient to cover the loan amount of a mortgage so that if you die, your beneficiaries will have enough money to pay off the balance.
Starting a Business / Becoming Self-Employed
If you’re self-employed, chances are the investments you’ve made in your business have been substantial. If the value of your business has recently changed (the purchase of a new building, inventory, or equipment), be sure your life insurance limits are set high enough to cover business debts that your family could be held responsible for when you die. Don’t risk them having to liquidate assets to cover outstanding debt.
Becoming Stay-at-Home Parents
Although stay-at-home parents don’t bring home a paycheck, they provide substantial support for their families. If they weren’t around to take care of children, make meals, run errands, or manage other household tasks, someone would have to be hired to fill those roles. That’s a cost the working parent would have to shoulder if something happened to the stay-at-home parent. If that parent had ample life insurance, the death benefit could cover the cost of childcare so the family’s finances wouldn’t take a hit.
Jankowski Agency, Inc. is an independent insurance agency located in Fulton County New York. Our office is in Broadalbin, New York, but we serve all of New York State. We can provide coverage from many insurance carriers so you receive the right life insurance for your budget and needs! You can reach us at (518) 883-3415 or online at https://jankowskiinsurance.com/insurances/life-insurance/.