Being Prepared for Important MilestonesLife Events
No matter what stage of life you're in, you always should consider what would happen to your loved ones if something were to happen to you. Getting Life insurance means having a safety net in case of a tragedy, so a personal misfortune doesn't become a financial catastrophe. You can get an idea of how much insurance will be most beneficial to you and your loved ones by recognizing what's happening in your life. Here are some milestones that can prompt you to think about your Life insurance needs.
Fresh out of School
You're young, single, new to the workforce and ready to take on the world! So how much Life insurance do you need? Assuming you’re not making mortgage payments and don’t have any dependents, you probably don’t need much. Essentially, you'll want enough to cover final expenses if something were to happen to you. Ask your boss or a Human Resources (HR) rep at work, since there's a good chance you can get a modest policy through your employer.
Know though, that most employer-based Term Life insurance doesn’t go with you if you get a new job…and it doesn’t accumulate cash value, so it’s important to buy your own coverage. Since Life insurance premiums go up with age, it’ll probably never be cheaper to get a policy than it is right now.
You're a little older, more mature, and more settled. Maybe you've bought a home with your new spouse. Even if your partner is gainfully employed, would he or she be able to cover mortgage, homeowners insurance, property taxes, and other expenses without your income? Even if they could, for how long?
If you haven’t already, consider investing in a Life insurance policy to make sure your spouse can handle the financial responsibilities alone if anything should happen to you. This is also the best time to think ahead to retirement, because life insurance can help with that, too. Choosing permanent insurance now means more time for the cash accumulation in your policy to grow, and you can lock in more affordable rates when you're young and healthy.
You made a little person…a little person that depends on you for absolutely everything. It's not a responsibility that should be taken lightly, and your Life insurance should reflect that. Whether you and your spouse each continue to work or one of you can stay at home with the kids, both of you are providing for the family. If something should happen to you, could your spouse and children get by?
Whatever your income situation, your spouse will have to make it on reduced earnings and will most likely have to pay for child care, as well. Start thinking about your children's futures now so you can be as prepared as possible when the time comes, and your family isn't left high and dry if something happens to you.
Your kids are off to college and beyond, and it's just you and your spouse once again. Even if your mortgage is close to being paid off, there are still plenty of living expenses to consider. This is especially true if you’re getting close to retirement. Without a proper Life insurance policy, your spouse may have to dip into retirement savings to cover things like medical bills, funeral costs, and mortgage payments, leaving your family with a reduced nest egg. Make sure you have peace of mind as you head to retirement so you can plan for your dreams.
You've done it. You've put in years of hard work, saved diligently and are ready to enjoy your golden years. While your family may no longer rely on the income you provide, you are now most likely living on a fixed income. That means any significant expense - hospital bills or a funeral, for example - can be devastating to your spouse's remaining finances. Talk about these changes in your situation with your insurance agent. Keeping your Life insurance current will help your survivors cope with the financial reality of your passing.
No matter what milestone you’ve just reached, any Farmers agent can help you decide what Life insurance policy is right for you. Don’t hesitate to contact an agent near you.
Life insurance, annuities and accidental death insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.