When you have someone depends on your income, so you should buy life insurance. This is the first reason that comes to our minds for buying life insurance. In fact, there are more reasons that you should consider than just that. So, when should you buy life insurance?
If you are employed, you may have life insurance from your employer. However, the amount usually is not enough to cover for your financial obligations in the event of your death, and the worst scenario is it will be gone if you lose your job or change your job. Ideally, having your own life insurance will be the best option. You know that you need it, but you don’t know when you should buy it. Also, keep in mind that the earlier you buy, the better premium rates you will have. Yet, it’s a good idea to review your financial situation and concern when it comes to big event in your life:
- Get marriage: this is probably a big step in your life not just mentally but also financially. Your marriage will get you into more income needs, loans, and liabilities. Whether you are the main income or not, you will need a financial protection for both spouses.
- Have a child or adoption: this is a MUST situation that you should have your life insurance. You can secure your child’s expenses, college fee and maybe keep them from other debts you are owed. Especially, for families with children, with one spouse staying home. It can be crucial to have life insurance for main income person. If pre-mature death event occur, it would be tremendous financial strain to the other family members, in addition to being a devastating loss.
- New home purchase: when buying a house, people will definitely buy property insurance. Yet, it will be more devastating when your co-signer is facing the possibility to lose the house, in the event of your death. Life insurance can cover for the mortgage or home equity obligations when you are not there.
After all, life insurance is one kind of financial protection to ensure to continue your financial obligation in the event of your death. When you have your fianancial obligations, you should consider buying life insurance.