Tuesday, August 10, 2010, AM | 1 Comment
Any time is a good time to buy into life insurance. Life is unpredictable, of course. But many folks try to keep delaying the decision of buying into it. Home insurance is mostly required by mortgage lenders. Auto insurance is a must in most states. Life insurance is your choice and that is probably the reason why many don’t readily go for it.
If you are working full time, you may already have life insurance from your employer. However, they give you the very minimum that they can easily afford the premiums for. So if you can afford it on your own, it’s a good idea to consider purchasing additional coverage independently. In that case, your policy is portable. That means the switch to another employer will have no effect on your policy.
It’s a good idea to review your policy and beneficiaries on a regular basis. Consider the following events and the ways in which life insurance might help protect your family in each scenario:
When you purchase a new home…
Life insurance can cover your mortgage or home equity obligations in the event of your death.
When you get married…
A wedding should entice you to review your entire financial situation, including your income needs, debt, and other liabilities, and to add a layer of protection for both spouses.
When a baby comes in your life…
A life insurance policy can provide protection for your family’s increased income needs as well as any debt you may have taken on, including college expenses.
When you get a new job…
A term insurance policy can replace any group coverage you may have had from a former employer, and allow you to increase your coverage amount in accordance with your new salary.
In a Nutshell
If you can afford the premium, buy adequate life insurance. That would be on top of what your employer may give you.