Planning for the unexpected is a necessary part of life. If you have children, a spouse and family members who depend on you for financial support, life insurance is something you should consider.
As you pass through different stages in your life, make sure you contact your life insurance company to review whether you need to make any changes. Reasons to make changes can include:
* Children – If you unexpectedly pass away before your children graduate from high school, life insurance can typically help cover college tuition.
* Spouse – Housing expenses could be a huge expense if your salary isn’t supporting the family any longer. Having life insurance to help pay the mortgage and replace your income can help your family continue living in their home.
* Parents – If you financially support your elderly parents, having life insurance may ensure they are adequately cared for if you were to pass away.
Many families also have one parent who stays at home with the children. In 2010, 23 percent of married-couple families with younger children had a stay-at-home mother. A term life insurance policy (coverage lasts for a “term” you choose, usually 10, 15, 20, or 30 years) can help your family afford child care if the stay-at-home parent were to pass away when your children are still young. This would allow the breadwinner to continue working and bringing home a salary.
As your children age, and leave the house, you might need to review your policy. Your mortgage may be paid off or you might not need to worry about college tuition any longer. You may be able to convert your term life insurance policy to a permanent life insurance policy without having to get another medical checkup.
When you’re confident about your family’s future because it’s protected, you’ll be able to enjoy the exciting changes each life stage brings even more.