Not many people think about life insurance when they’re young and free of responsibilities, but some major life events may push you to pause and reconsider. Marriage and parenthood are the well-known milestones, but there are quite a few major life events that warrant getting term life insurance. Read on to know five times you may want to consider getting term life:
Becoming a Parent
Having children may motivate you to get your first life insurance policy or increase your existing coverage. The death of a parent can be devastating for any family; the additional financial pressure created by their passing doesn’t have to be.
A life insurance payout can be used to cover funeral costs or simply to help manage daily expenses such as groceries, rent, or debt repayment. The death benefit can be a huge help to the surviving parent or guardian as they navigate the difficult grieving period.
Starting a Business
Not many people think of getting life insurance when they start a business, but it may serve a few purposes. It can be a way for your business partners or family to repay any debt you may have incurred to start your business if you pass away.
If you have employees depending on you for wages, an insurance payout may help support them temporarily.
Buying a House
Purchasing your own home is a huge milestone, but with it comes a mortgage that may take decades to pay off. If you’ve bought your home with a spouse or partner, getting life insurance can be critical. When you take on a big debt such as a mortgage, life insurance can help protect your spouse from financial pressure if the unthinkable happens.
When you get engaged, insurance is probably the last thing on your mind. You may be focused more on planning a wedding or buying a house. However, if you pass on unexpectedly, you wouldn’t want to leave your spouse struggling financially. An insurance payout may help them manage funeral costs, pay any debts that you may have left behind, or supplement lost income, so they can focus on processing their grief.
The Bottom Line
This list is by no means exhaustive–there are other moments in life that may prompt you to consider getting insured, for example if your parents or other relatives become dependent on you. The relief of knowing your family will be provided for if something happens to you can be a great reason to consider getting insured.