With life insurance, you are paying a premium every month so that someone else will get a sum of money after you pass away, but there’s more depth to it than just money. A life insurance policy shows you have your loved ones in mind so financial burdens are not placed on them.
What If I Don’t Get Life Insurance?
Simply put, not getting life insurance means that you will only be able to contribute whatever remains of the resources you have. As you get older, your personal funds are likely to dissipate due to medical expenses, and when you pass away, your loved ones may not be able to get enough to pay for your funeral. Funerals can cost up to $12,000, and this could be hugely detrimental to a loved one who is already handling other debts.
Life insurance is also an absolute must if you had a loved one co-sign on a loan with you. If you still owe a substantial amount of money to your lender, it won’t go away when you die. Instead, the entirety of the debt will be transferred to someone who you may care about deeply. If it’s your spouse who co-signed, then that is only going to add a financial burden to the stress he or she is already experiencing.
When Should I Get It?
Insurance in general is a “buy it before you need it” purchase. If you’re younger, it’s hard to put yourself in your own shoes several decades down the road. But your perspectives and top priorities are bound to change, and if you wait to see this for yourself, your bank account will be the one that will be taking the hit.
Companies charge less for younger individuals. In general, younger people are healthier and will be able to contribute more in premium payments than their older cohorts. As you age, your options dwindle, because after a certain point you face the likelihood of being denied a policy. And the policies you may be able to obtain at a later age will be substantially more expensive, which can make retirement unrealistic.
Another time that many purchase policies are directly before or after certain milestones, such as getting married or having a child.