Life Insurance & Annuities
When Will I Need Life Insurance?
The Times of Your Life
People require financial protection at virtually every stage of life. And as you move through life, your needs will change. Let's take a look at the important role that life insurance can play at various points during a lifetime:
Meeting Your Needs Today
Young & single — When you're single, fresh out of school and starting a career, you may not feel that you need insurance coverage. However, if you have any school or car loans, you know that they can be a substantial responsibility. And if you were to pass away, those burdens and your final expenses may become the obligations of your parents. Life insurance can help cover those debts. In addition, your health will probably never be better and your premiums will never be lower than at this point in your life. This is a good time to begin building a base of permanent life insurance and/or preserving insurability through the purchase of convertible term insurance.
Newlyweds — The responsibilities begin to mount for people who are in the early years of a marriage — mortgage or rent expenses, car payments, credit card debt and many other bills. Household earnings also increase, especially for dual-income families. Dreams and aspirations grow larger, as do the price tags attached to them. While it may seem hard to focus on life insurance as the obligations begin to increase, you should realize that it will only get harder and more expensive.
Growing families — Raising children is a wonderful experience, especially while you watch in amazement as they grow and mature. But parents must also face the fact that supporting a child is a very expensive endeavor. The U.S. government estimates that raising a child from birth to age 17 can cost as much as $279,000, and that figure doesn't include college tuition or expenses. The ever-rising cost of education becomes a key issue, as you must now balance the dual goals of saving for their college education, as well as your retirement. Life insurance can help put your mind at ease, as proceeds can be used to help your family cope with financial obligations in the event of a loss of a breadwinner.
Empty nesters — With the children grown and on their own, your financial responsibilities may not be as great as in the past. In addition, these are your peak earning years, and you can focus on accumulating assets for retirement. As you begin to contemplate the joys of retirement with your spouse, it's important to remember that the need for life insurance still exists. The loss of a breadwinner could cause serious financial problems now and threaten the survivor's lifestyle during retirement. In addition, if you're a business owner, you also have a variety of financial considerations. For these reasons, life insurance can play a vital role in your financial strategy.
Retirees — Once you're comfortably retired, you'll have lots of free time to do the things you love — spend more time with the children and grandchildren, travel, golf and work with your favorite charities. You also have the opportunity to leave a legacy through life insurance to your children and grandchildren, helping them reach their dreams of home ownership and a college degree. In addition, now is the time to consider life insurance as an estate-planning tool to facilitate the transfer of wealth to your heirs. We do not offer estate planning services (see our Legal Notices). However, we will work with your estate-planning attorney (or other expert) to recommend the type of life insurance that is right for you.
