Introduction
Many people who find themselves in major financial pitfalls find themselves wishing they had life insurance to bail them out. Having the best life insurance can help you recover from various money problems and move on with life comfortably. They are as follows:
When You’re Going to Have a Child or Already Have Children
One of the main motivators for most people to get life insurance coverage is when they have a child. With life insurance, you can ensure that expenses like education and mortgage are taken care of for your family after your passing. Those with young children looking to start a family or expecting a child should consider getting life insurance.
It’s recommended that you get a life insurance quote from a reliable life insurance company for the best rates once you’ve had your medical exam or after you’re pregnant.
When Getting Married
Before you walk down the aisle with your partner for life, make sure that you’ve considered life insurance. There are options for couples, such as joint life insurance policies, which are tailored for married people. For various high-net-worth couples, not only are they great for taking care of expenses, but they’re ideal for estate planning and reducing tax burdens on their heirs.
There are other considerations like children from a past relationship or setting up a trust for children when they’re minors. Couples, you should also discuss inheritance and asset protection as well as family life insurance.
Financially Supporting Aging Parents
It’s more than likely that your parents might not have paid much attention to retirement planning and don’t have life insurance. A 2018 AARP Public Policy Institute report explains that around 6 million millennials provide support for their parents, grandparents, and in-laws.
Whether you plan to take care of your parents at home, in a nursing or assisted living facility, you can take care of the expenses better with the help of a life insurance agency.
Having Private Student Loan Debt
With life insurance, you can ensure that your parents won’t have to deal with the financial burden of your private student loans after your passing if they co-signed on them. If they didn’t co-sign, there still can be problems that your spouse or inheritors might deal with if your loans are unpaid.
Unlike federal student loans, private loans don’t get discharged after the borrower’s death. Instead, they’re added as estate debt, and the lender can choose to discharge it or not after your passing.
For Self Employment or Working in A Family-Owned Business
Financial planners state that the death of a key performer for any business can lead to major issues, which are often the pitfalls for many family-owned businesses from a financial perspective.
You’re often required to have decreasing term life insurance by the lender when opting for a business loan. If the business owner passes away, the bank becomes the beneficiary for paying off the loan.
You Have a High-Risk Job
Life insurance is a form of risk management, preventing you and your loved ones from financial problems that could occur due to losing your job, an illness or disability, or even premature death.
Some jobs have a higher risk attached than others, with construction, mining, and working in the oil and natural gas industry being prime examples. In such fields, there are high chances of disability, and the employer will also offer short-term disability insurance. But long-term disability insurance will be required, which becomes more relevant when you quit your job.
Your Hobbies are Extreme
For people that want to live life to its fullest, the bad news is that you’ll be paying a higher premium than the average person. Considering that you’re more likely to die from natural causes, it will be similar to working a high-risk job, according to the life insurance agent.
Hobbies like scuba diving, rock climbing, or anything of the sort should be mentioned in the life insurance application. If these activities are not listed, and you pass away doing them, and they weren’t disclosed on your application, the insurance company can either cancel the death benefit or decrease it by a fair extent.
Work with Us
Do you need a life insurance agency to help prepare for the aforementioned events? Get in touch with us at Franklin Life & Annuity right away. If you need life insurance for the entire family or require final expense insurance, our services can assist you.