The one constant in life is that nothing is constant. One day you are young, single, and carefree. The next, you have a family to feed and a mortgage to pay.
As your life circumstances shift, so might your need for life insurance. Growing families can increase financial responsibilities that will need to be covered should they suddenly find themselves without your support. Even if you do not require a policy today, here are six life changes that likely will have you calling an insurance agent someday soon.
1. You get married
The moment you meet Mr. or Ms. Right likely marks the first step on a journey toward purchasing a life insurance policy. Once you tie the knot, it’s no longer a matter of having to feed and care for one. Instead, you now play a part in the financial fate of your partner. Life insurance can provide crucial peace of mind to couples. That’s especially true if only one spouse works and the other is dependent on his or her income. Even if both spouses work, a surviving spouse would likely have difficulty paying the bills if the household was reduced to just one income. Buying life insurance ensures that your spouse won’t be hit with a financial burden should the unexpected happen.
2. You buy a house
While marriage can increase one’s need for life insurance, purchasing a home together can multiply that need several times over. The loss of income is already difficult enough when a spouse passes, but it becomes even more difficult when you add mortgage payments to the list of financial responsibilities. Grieving the loss of a spouse is tough enough without adding the worry of losing your home. Even if you are single, it’s important to have life insurance when you buy a house because that debt might fall on other loved ones, such as parents or siblings.The right life insurance policy should provide enough of a benefit to cover the monthly mortgage payment, as well as related expenses such as insurance and taxes.
3. You have children
For most parents, children are one of top reasons for buying life insurance. A life insurance policy can provide for a child’s basic needs today—food, clothing, and shelter—while also covering future needs, such as college tuition. Family life can be expensive, and you might worry about having enough extra money to pay for life insurance premiums. However, weighing the immediate cost of premiums against the future cost of leaving your family without protection should you suddenly pass is a good impetus for prioritizing getting life insurance. Working with a carrier that understands your unique needs and that can even reward you for healthy behaviors can help make life insurance affordable.
4. You are diagnosed with a serious disease
None of us want to imagine being diagnosed with a potentially fatal health condition. But illness is part of life and ignoring this reality can put our family’s well-being at risk. Of course, it is best to get life insurance before you become ill. Diagnosis with serious diseases such as cancer, heart disease, and diabetes can make it difficult to find a policy. But coverage might still be available even after your diagnosis, especially if you have a condition that is managed well. Each insurance company has its own individual health-related underwriting standards. Thanks to advances in medical treatment, more insurers now sell policies to people who have potentially fatal but increasingly treatable conditions. Insurers are especially likely to offer a policy if you can document that you and your healthcare providers are treating the disease effectively, or if the illness is in remission. For some companies, proof of health conscious living, such as race results or membership in athletic groups, might also improve your chances of getting a policy.
5. You get divorced
Sadly, we all know that “happily ever after” does not always apply to today’s marriages. Divorce can quickly create an urgent need for life insurance coverage. Perhaps you never gave life insurance a second thought when you were married to a high-earning spouse. But if you are now a single parent on a modest income, life insurance can be a lifeline for your children. Many people make the mistake of simply assuming an ex will step in when a parent passes away. However, even the best-meaning parents may simply be unable to adequately cover their children’s needs. Buying life insurance is one way to avoid rolling the dice with your children’s future.
6. You lose your job or retire
Millions of Americans count on a life insurance benefit they get through their employer. Typically, such policies provide coverage equal to one or two times an employee’s salary, although you might be able to purchase higher multiples of coverage for an additional fee. If you lose your job or retire, this type of life insurance coverage might also disappear. If so, consider talking to your insurance agent about purchasing an individual life insurance policy. However, before you do so, it might be best to check into options to continue the coverage you previously had through your employer. Many work-based policies offer the option to convert your coverage to a permanent life insurance policy after you separate from the employer. Just be aware of the cost of doing so. You might be better off skipping conversion and purchasing your own individual term policy instead.
If you’ve just gone through a major life event or want to make sure your family is protected in between life changes, you might want to look into purchasing life insurance with Health IQ. Visit HealthIQ.com to see if you qualify for special rate life insurance for health conscious people.
ABOUT HEALTH IQ
Health IQ’s mission is to celebrate the health conscious through financial rewards. That’s why Health IQ is the fastest growing life insurance company in the United States, saving those who qualify up to 33% lower rates on their Life Insurance.
- Secured $7.0 Billion in coverage
- Underwriting time is 35% faster than competitors
- 70% of their health conscious clients get the top rate class
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