Life Insurance Coverage - Why You Need It

Life Insurance Coverage - Why You Need It

Life insurance coverage needs are different for each stage of life. Single people, married couples, young families and retirees all require differing amounts of life insurance coverage. No matter what stage of life you are in, protecting yourself and loved ones with life insurance coverage is always a wise decision.

Life Insurance Coverage for Single Adults

If you are single and do not own a home, your life insurance coverage needs are probably not as high as they are at other stages of your life. But single adults still need life insurance. After all, 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, too, often lack adequate life insurance coverage. Some studies show that as much as 64% of American women do not carry any life insurance coverage. 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 coverage. A term life insurance policy may be a more affordable option in these cases.

Life Insurance Coverage for Married Couples Without Children

If you are married but don't have any children, 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 coverage before your children are born.

Life Insurance Coverage for Married Couples With Children

A more established family usually has more financial responsibilities. Once you have children and a home, life insurance coverage becomes more critical. Parents can buy life insurance coverage that expires after their children graduate from college to ensure that the full education is paid for. Life insurance coverage also can be used to ensure that should the main breadwinner in a household pass on, the home’s mortgage is covered.

Life Insurance Coverage for Retired People

For those who are newly retired, life insurance coverage needs may not be as high as they are at other stages of life, but there are still needs. 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, putting a financial burden on the affected family members. There are also funeral costs to consider. Life insurance coverage will help your family members recoup any financial losses after you pass away.

Life insurance coverage is meant to protect you and your loved ones in the unfortunate circumstance that you pass away. Term life insurance coverage 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. 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 by comparing life insurance