Thinking about your own death, or that of a loved one, is uncomfortable at best but taking out a life insurance policy is key to the security of your family.
Should everyone have life insurance? Ideally, but many people hope to avoid taking out a policy. Here are some signs that point to it being time for you to take out life insurance.
Significant debt
When you die, your debt is not necessarily erased. Depending on the circumstances, it can be passed on to your next of kin or to the person who cosigned your loans. If your debt is too high to be paid off with your savings, it is advisable to take out a life insurance policy.
Being the breadwinner
Whether or not you have children, if you are the breadwinner in a married or committed relationship, you should consider taking out a life insurance policy. You want to ensure that your partner can survive despite the unexpected absence of your income. Additionally, the policy can be used to cover funeral expenses and erase debt.
Children, or plans to start a family
As soon as your little one comes into the world, they will need at least eighteen years of support. It is always recommended that both parents have life insurance policies, even if one is planning not to or does not work. Consider the cost of hiring people to take care of the same tasks as a stay-at-home parent— childcare, cooking and housekeeping — and it becomes clear why a life insurance policy is recommended.
Room in your budget
Single or not, parent or not, if you are young and healthy and can afford it, it is a good idea to take out a life insurance policy. Life insurance is cheaper and easier to get when you are still in early adulthood and without significant health issues.
Owning a business
Your business is a source of income for more than just you; it brings in money for employees, distributors and others. By taking out a life insurance policy, your business can continue running during the transition after your death, allowing those who depend on it to carry on. The policy can also be used to erase business-related debts.
If it is time to take out a life insurance policy, speak to the experts at John B Wright Insurance to determine what type of policy and coverage level is ideal for you.
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