Why Life Insurance is needed.
Many believe that thinking of life insurance brings a bad omen to a long life. As if the purchase of life insurance has any impact as to when you will pass away. The truth is Life insurance has different needs based on you predicament and life situation. The first and most important concern is your health. Without good health nothing is possible including the purchase of life insurance.
So what are the circumstances one would need life insurance. Well besides protecting your health status, which perhaps is the most overlook reason to purchase insurance, there are many needs based on your life circumstances.
In your twenty most of us believe life insurance is not necessary unless you are married and have financial responsibilities. However the truth is if we have passion, dreams that we view important life insurance can contribute to those dreams. The passion of saving the earth, helping the needy, curing diabetes, etc. are all dreams and passion when you are twenty that you would like to partake but figure there is plenty of time. But the truth is doing something vs. hoping to do something can both exist with Life insurance. As you earn more and fulfill your dreams insurance is always there fulfilling your dreams. This is the time you have the least expenses, least income but the insurance cost is the least expensive.
In your thirties your career is in full motion and your income has increased dramatically but you are still enjoying yourself. Settling down, getting married or looking for a long-term partner may be near the horizon. Looking to own your home, car, and the entire toy you want seems feasible. You have not lost your dreams or passion; you are closer to living them than before, if you are not already there. At this point in your life the need for insurance shifts more towards your love ones future with you, and what you would like to leave them with. Things are going great and all you want is to continue the ride. Your health is great and no health issues in sight. During this time disability insurance is a better choice since accidents are more likely to occur and your passion and dreams remain important.
In your forties you are now established with a partner and perhaps raising children. The dream shifts again to the well being of your family. You work harder to maintain your family and your career is established and you are living the American dream. You are a homeowner, multiple vehicles, and participating in your kids school programs. The workload is always there absorbing your life and you wish you had more hour in the day to get everything done. This is the period of time the amount of insurance is at its highest point. You now need the most to cover all the obligations you are now responsible for. Which includes income for your children standard of living, education, and much more. Disability insurance is always overlooked during this time, and its never adjusted to meet these needs. The likelihood of disability is at its high point also during this period.
In your fifties if you started young having children they should be over 21 years of age. However as most start having children older you may be still paying for their college years. In this case nothing has changed and you need to continue maintaining the insurances both Life and Disability until they graduate and find employment. During this time medical condition become relevant and its best to maintain the current insurance. However the type of insurance may need to be changed dependent on what you purchased in your younger days. Transferring assets into life insurance for retirement is a consideration due to tax-free benefits for supplemental retirement income
Into your sixties if you successfully reach this age healthy, debt free, and children gone living their own life its time to focus on you. What are now your passion and dreams moving forward? Are they the same as when you were in your twenties? This is the period of time that hopefully you are enjoying you grandchildren, traveling, and enjoying financial freedom. Unfortunately not everyone can say this. Many individuals are starting over due to the losses in the recession and are struggling every day. In either case Life insurance is the solution to cover your hopes and dreams for the family or yourself. Learning how to shift and choose is the secret in planning your insurance since now the concern shifts from family to who is going to take care of you, and is there enough assets to get through retirement.
In your seventies if you have lives through all the trial and tribulations and survived in good health you have made it and now your plan for your legacy. How do you want to be remembered? And who will inherit your lifetime assets. Amazingly the need for insurance may now be the use of insurance to pay the estate taxes of the wealth you accumulate or be donated to your favorite charity. Either way Insurance has provided you security and peace of mind throughout your life. Or you made it but again you have found yourself without any insurance. Therefore, you need insurance to place the burden off your children. The hope now is that you can afford it and health qualifies for it.
In your eighties, now you have everything in order and just enjoying life and believe you have enough savings and need no insurance. Perhaps you are correct but if you have the assets would it not make more sense to transfer it to your family tax-free.
That’s something to think about.
In your nineties and beyond you have survived, and the hope is you are not alone, are active, and have memories and grandchildren that care and love you. That your family remembers the good memories, and they are all there to bid you farewell.
