If you are fortunate enough to have someone depending on you and your income, consider it a blessing and individual responsibility to secure life insurance. As you’ve heard many times before, there are few certainties in life, but death and taxes remain a constant. If you have a significant other, child, or family member that you provide for, or that depends on your income, then it is paramount to have life insurance coverage for when, not if, you die. Life insurance is not for you, it’s for the loved ones you leave behind.
WHEN SHOULD I GET LIFE INSURANCE?
Many people fail to plan, and avoid discussing the topic of death. It is not until they begin to age that they realize the value and importance of life insurance. Unfortunately, when you realize you need life insurance due to life circumstances, it may be too late. Too late? Yes, too late. We are typically in better health in our younger years, and as we age, have higher risks to develop certain health conditions that could raise your life insurance rate, or worse, be uninsurable. If you are young, newly married, have a significant other or child, it would be in your best interest to get life insurance now, since life insurance rates are based on age and health.
Golden Point: When deciding on the amount of coverage, be extremely cautious to maintain the life insurance, and be sure the premium is within your budget. Remember, this coverage is not for you, it will be for the loved ones you leave behind. If you cancel the coverage, you may need to re-apply and go through medical underwriting all over again, where you may be charged an additional premium or be denied coverage altogether.
The first question to know and understand is to verify how much coverage you currently own.
You will need to find out from your employer if you have any life insurance coverage, and if so, what type and how much. This will serve as a basis or framework in determining your true needs.
A key point to know: Your employer may discontinue life insurance coverage at any time. What happens if you are let go or when you retire? Most often, the coverage ends or will terminate. Take this in consideration when planning and deciding on the exact amount of coverage.
HOW MUCH COVERAGE DO I NEED?
Through extensive research, expert knowledge, and industry experience, On Point has created a clear and understandable review process to determine your true life insurance needs. We understand your coverage often needs changing, and your policy should be updated to reflect life changes, such as marriage/divorce, new children, income changes, new business, health change, new debt, etc. As such, it is imperative that you have your policy reviewed often to bridge these gaps in your coverage. On Point is well equipped to advise and help as we are able to remain unbiased in our reviews and recommendations.