You’ve probably heard that becoming a parent is a good reason to get life insurance. And that’s true. But there are other (really important) factors to consider when it comes to coverage — no matter what age or life stage you’re at.
We’ll back up. By definition, life insurance provides a “death benefit” (aka cash payout) to your “beneficiaries” (fancy word for the person or people you decide should get said payout) after you’re gone. So long as you pay your monthly premiums while you’re still here.
It may feel morbid, but giving the people you love a financial safety net can give you peace of mind. And help them get the funds they need. Talk about a win-win. But how do you know you actually need a policy? We teamed up with Quility to break it down.
1. Your family situation is changing
Getting married. Welcoming a new fam member. Taking on new duties for an aging or disabled loved one. It may seem overwhelming to add another to-do to your list during these major moments. But this can be a great time to take stock of everyone who depends on you. And what responsibilities you might be sharing.
Because spoiler alert: Whether you’re the primary breadwinner or a full-time caretaker, you’re doing a lot. And if your loved ones suddenly lose all that you contribute, that could be an added burden at an already difficult time. A life insurance death benefit can help them pay for college, mortgage payments, living expenses, care, and…anything else that comes up.
2. You have personal debt
From unpaid credit card bills to mortgages, debt comes in all shapes and sizes. And it might be the only thing people like thinking about less than life insurance. But depending on what kind of loans you have, your loved ones could be on the hook for paying them off after you die.
Example: If your parents co-signed your private student loan, the debt would fall on them if you’re not around to make payments anymore. Depending on where you live, your spouse could become responsible for finishing the payments. Even if their name isn’t on the loans. Not exactly the dream inheritance. But life insurance can help cover any of your debts that don’t get canceled.
3. Your work sitch is changing
A job change can = a financial change. So whether you’re starting or growing a business, getting a big salary bump (congrats, btw), or prepping for retirement, it might be time to evaluate your life insurance needs.
We’ll start with the most obvious: If you’re starting or growing a business, you probably have people who depend on you and your biz earnings for a paycheck. You also might’ve taken out loans to get that business up and running. Life insurance can help make sure that your company has everything it needs to keep the payroll rolling. And the debts covered.
Next up: More money, more life insurance considerations. Especially because more money coming in often means more spending (hiii, lifestyle inflation). And more expenses mean more things you’ll want to make sure your loved ones can afford in your absence. Remember those personal debts we talked about? Moving into a bigger home can mean bigger mortgage payments. When you’re starting to see more dollars coming in, you’ll want to think about how you’d make up for all the ways it’s going out.
And finally, if you think you’ll retire one day (yes please), life insurance can serve an extra purpose. Particularly if you’ve got permanent life insurance. Because permanent policies can have a cash value. With a cash value policy, a portion of your monthly premium is placed in a savings or investment account. And that value can grow over time. The cash value (aka the $$$ you accumulate) is separate from the death benefit (aka the amount you’ve put aside for loved ones). And unlike the death benefit, it’s meant for your use rather than your beneficiaries. You can use this interest-earning portion to pay your policy’s premium, borrow from as if you’re taking a loan from your future self, and even withdraw from to give yourself added income when you’re not working anymore. So many possibilities.
Bonus reason: It could be cheaper to get it now
If you think you’ll get life insurance at any point, it could pay off to get started stat. You can typically lock in lower premium rates while you’re younger and healthier. Plus, since life insurance can be more than a one-time payout (read: an investment tool), getting a policy when you’re younger can give you a great start to building wealth.
If anyone depends on you and your income, you probably need life insurance. Carrying debt and getting a new job title can make it extra important. And when it comes to picking the right time to get covered, remember that costs tend to rise as you age. If you wanna get it over with quickly, Quility’s gotchu. You can apply and get approved* for a term life policy instantly on their site. The whole process takes less than 10 minutes, and involves zero trips to your doctor’s office. And coverage will start today. What a world.
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