Need Life Insurance Coverage?
>> Monday, March 22, 2010
Do You Think You Don't Need Life Insurance Coverage?
Different stages in life require different amounts of life insurance coverage. The common thinking is that in some stages of life, you don't need any life insurance coverage. While the need life insurance is greater for someone who has family members depend on them, a person with no depend on may still a need life insurance coverage.
Already Have Life Insurance Through Work?
Employees pay premiums for employer-sponsored health coverage based on risk profiles that take into account factors such as the age and health of the entire group. That system can extend to life insurance as well. If you have a job, is your employer's life insurance program the best deal around? Not necessarily!
The convenience factor of having a company benefits representative do make the framework for a life insurance policy, then enroll you for automatic deductions, is appealing; but it may come at a price. Especially in larger companies, employees are paying a premium based on the risk profile of the entire employee base. That means if you're a healthy 30-something, you could be paying a premium that factor in employees twice your age and may have health problems. Not necessarily a good deal for you.
Even if you have a policy through your job, you can think about canceling your work-sponsored policy after you get a more affordable and customized term life insurance policy in place.
Life Insurance Coverage for Single Adults
If you are single and do not own a home, your life insurance needs are probably not as high as they are at other stages of your life. If you are single, who would assume the burden of paying for your final costs if you were to pass away? This may fall to your parents, who have hopefully planned well for their retirement but are also likely to be living on a fixed income, one which does not take into account the possibility of you passing away before them.
Single women often lack adequate life insurance coverage. Some studies show that as much as 64% of American women do not carry any life insurance. Many single women, especially those with children, may be on a tighter budget than dual-income couples, and as such, feel they can't afford life insurance.
Life Insurance Needs for Married Couples Without Children
If you are married, but don't have any children, you may also think you don't need life insurance coverage. It is still important to think about whether your spouse would be able to cover all costs if you were to pass away, especially if you own property or have large debts to pay off. If you do eventually decide to have children, remember to reevaluate your life insurance needs before your children are born.
Life Insurance Needs for People who are Retired
Life insurance needs may not be as high as they are at other stages in life for those that are newly retired. Even though your children may be grown and on their own, and your spouse may be able to live comfortably on his or her retirement savings, there are many special circumstances in which they may find themselves in financial trouble if you were to pass, or vice versa. If you are very ill before you pass away, you may incur significant health costs, many of which may be passed on to your spouse or children.
Many seniors may have to live with a child if they are on their own and need help; and this may put a financial burden on the affected family members. There are also funeral costs to consider. It is important to ensure that your family members can recoup any financial losses after you pass away.
The Life Insurance coverage is to protect you and your loved ones in the unfortunate circumstance that you pass away. Make sure anyone who relies on your income is covered, or that any debts you may possess will not be passed on to loved ones. Term life insurance is an affordable way to cover your needs at any stage of life, and offers the added benefit of letting you choose your coverage amount and term length.
