4 groups who may need Life insurance
Today there are more single mothers, stay-at-home dads, and households with a woman as the primary earner than ever before. People are buying homes later in life than they have historically, which means they may be making mortgage payments well into their 50s and 60s. And many couples are having children at an older age than previous generations which means these parents may face surging college tuition bills at the same time that they’re planning for retirement and helping to care for aging parents.
Changing family needs affect day-to-day money matters as well as plans to protect the financial future of loved ones. Having the appropriate amount of life insurance is essential. Here are four groups that may need life insurance the most:
- Breadwinners — If anyone in your life depends on you financially, you may need life insurance. Increasingly, women are becoming the primary breadwinners in their households, so they will likely need to have more coverage than their husbands or partners. The number of women who are their families’ sole or primary breadwinner has soared to 40 percent today from 11 percent in 1960, according to the Pew Research Center.1 You may get life insurance through your employer, but the coverage is generally lower than individual policies and only in place while you’re employed. The cash value of permanent life insurance from Farmers Life can help meet long-term financial goals, such as funding a college education for a child or grandchild and can provide supplemental income for your retirement.
- Stay-at-home parents — Even if one parent stops working to stay at home with the kids, both parents should have life insurance. It’s important to calculate the cost of services that a stay-at-home parent provides — child care, managing the household, transportation, etc. — in determining the amount of coverage needed.
- Older couples — Does it make sense to pay life insurance premiums in your 50s and 60s? If you have kids in college or adult children living at home, it’s important to make sure they’ll have some financial support if something happens to you. Empty nesters still paying a mortgage may need life insurance to make sure the surviving spouse is not burdened with this expense.
- Single moms — More than 40 percent of babies in the U.S. are born to women who are unmarried.2 Most of these women are in their 20s and 30s and may think they’re too young to buy life insurance, but new parents often need life insurance the most. Although employer group life insurance may be an option, permanent life insurance from Farmers Life can help build a more secure financial future for your kids and retirement.
How much insurance is enough?
There is no simple answer to how much coverage is enough. Some financial planners say you need enough insurance to replace five to seven years of your salary. Some say if you have young children or significant debt, you should bump up your coverage so you have enough to replace as much as 10 years of your salary. How much is enough really depends on your individual situation.
A valuable service I offer — a Life Farmers Friendly Review® — is a free, no obligation consultation that allows you to leverage my knowledge and expertise so you can make sure you have the right policy and the right amount of coverage at the right price. Call me now — it’s the smart thing to do.
Your Farmers agent may only sell policies in states in which he or she is licensed.
Farmers New World Life Insurance Company is not licensed to sell life insurance, accident and health insurance, or annuities in the state of New York. Life insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.