If you thought that having life insurance was know for the rich, you’d be mistaken. Life insurance is for anyone who wants their family to be financially secure in the event of your death. It can pay for funeral expenses and help to replace lost income.
Perhaps the biggest reason why people don’t buy life insurance is because they think they can’t afford it. But here’s the real deal: you can get life insurance for under $100 a month in your 20s, 30s and even 40s.
Here are 6 instances where it’s important to have life insurance.
1. If you’re the breadwinner
When you are the only person who is bringing in income for a household, it is essential that you have life insurance. What would happen to your loved ones if you and your income were to disappear one day? Is there enough money to pay for the mortgage, food and bills every month? Probably not, which is why it’s irresponsible to not have life insurance if you’re the breadwinner.
2. If you owe money
If there is a debt in your name, your estate will pay it (if you have anything in your name). But if you have a loan, a credit card or have a mortgage with another person, they are now fully responsible for the repayment of the loan.
Even if a debt is in your name only, if you acquired the debt during your marriage, your spouse may still be liable for the debt. This is the case in the 9 community states: California, Washington, Texas, Arizona, Wisconsin, Idaho, Nevada, Louisiana and New Mexico.
3. If you are a caregiver
Do you have aging parents who are becoming more and more reliant on you for their care? Do you drive them to the doctors, give them a bit of money every month? If so, you need a policy in place to help them when you’re no longer around.
4. If you want your children to go to college
College is extremely expensive. It’s already a challenge to help pay for your kids college expenses. Now imagine if you’re not around? Well with life insurance, you’re ensuring they won’t end up buried in a massive pile of student loan debt.
5. If you want to leave money to an heir
Let’s say you have two kids. You leave your house to one, but what about the other one? Rather than having them be forced to sell the house and split the proceeds, why not get a life insurance policy with one of them listed as the benefactor.
6. If you want to have your funeral costs covered
A funeral with a burial can run to roughly $10k. Is that the burden you want to leave your family in the days after you pass away? Having a policy in place ensures your family is only in mourning, not in debt from your loss.