The JRC Blog

Do I Really Need Life Insurance?

life insurance

If you are married or have kids, chances are you have considered purchasing a life insurance policy.

But what if you’re single, childless, or retiring? Life Insurance can be pricey and might seem like an unnecessary expense.

However, the reality is that most people need life insurance. We all want to be prepared for life’s unexpected events, no matter our situation.

A simple rule of thumb is that you should be covered by life insurance if someone will suffer financially when you die. This rule applies to more than just married couples or parents.

Singles

Most singles assume they do not need life insurance because they do not have dependents. However, if you are a single with outstanding debt, are caring for an aging parent or disabled sibling, or want to cover funeral costs when you are gone, life insurance is for you. A benefit to purchasing life insurance as a young, healthy single is that you have a better likelihood of qualifying for a low rate and locking in the premium.

Stay-At-Home Parents

Just because you don’t bring home a paycheck doesn’t mean you don’t make a financial contribution to your family. Consider what it would cost to pay someone to clean, cook, and care for your kids and home. A stay-at-home parent offers value to the home that is often overlooked, but very expensive to replace. Life Insurance can cover these costs and more.

Empty-Nesters

The kids are out of the house, college is paid for, and now it’s just the two of you. This might seem like an opportune time to drop your life insurance policy, but that’s not always a good idea. There are many unexpected events that life insurance could help with, such as a child returning home or suddenly needing financial support, the death of a spouse, or having an inheritance to pass to your heirs. Think twice before dropping your life insurance policy just because the kids are out of the house.

Retirees

When the house is paid off and you are set with retirement income, life insurance isn’t something you would ordinarily think about. However, depending on the size of your estate, your heirs might have to pay a hefty estate tax, as well as funeral costs, any other outstanding debts, and cost of living for your spouse. Life Insurance is an important thing to consider even if you and your spouse are financially set for retirement.

Small Business Owners

Life Insurance can help a small business in multiple ways should one of its owners or key employees pass away. For example,  a Buy-Sell Agreement ensures that the remaining business owners have the funds to purchase the deceased’s portion of the business from the family at a previously decided upon price. Additionally, Key Person Insurance ensures that the owner has the funds to either hire a replacement or make other arrangements. If you own a small business, life insurance is a must.

So, if you are wondering if you really need life insurance, just ask yourself if there are any costs that would be left to your family or co-workers should you die. If so, then it’s a good idea to look into life insurance. Don’t wait until later in life to get prepared!

“I need life insurance, now what?”

There are many types and amounts of life insurance coverage available. If you are looking for a policy and need guidance on the best policy for your particular situation, contact me for a complimentary personalized quote.