Life Insurance Offers Smart Investment Opportunities

How do you know when it is the right time to purchase life insurance? Should you wait until you have a job that offers life insurance as an employee benefit, or do you think you should wait until after a certain age when you feel you are closer to death?

Depending on the type of life insurance policy you decide to get, you could be covered anywhere from one year to five years or even for the rest of your life; this depends on if you decide to purchase term life insurance or permanent life insurance. One thing to be wary of is that if you bought your policy a ways in your past it might not be enough.

As your life and your family’s lives change, your insurance needs will inevitably change as well. Depending on events that have happened, it is a good idea to make sure you have enough coverage. Here are five signs to watch out for that may indicate that you need to get life insurance coverage or that you may need to change what kind you have.

1. 1. Starting a Family: The cost of raising a child through age 17 is, on average, $233,610 according to 2015 data from the U.S. Department of Agriculture, and this figure does not include college costs if you plan to help your child in that department. If you have had a recent addition to your family, your spouse or partner mighty not be able to afford those costs if something were to happen to you- this is especially the case if you are the financial breadwinner.
   2. Buying a Home: Two of the top five reasons people get life insurance is to cover mortgage debt and to pay for home expenses, so if you have a family, the last thing you want is for them to be forced out of their home because they cannot keep up with the payments. If you have just bought your first home or a new home with a bigger mortgage, make sure you have enough coverage to at least make the monthly payments.
   3. Increase in Income: Two-thirds of people who buy life insurance do so to replace the income that is also lost after tragedy. If you have recently earned a significant raise or perhaps your income has increased steadily since you last bought insurance, check to make sure your insurance coverage is still enough to replace it.
   4. A Lifestyle Change: While income increases often come with lifestyle changes, it is also possible to sort of upgrade your lifestyle after you have paid off any debts or maybe you have improved your income/cash flow of your household in some way. If you notice that you have been spending more per month than you were in the last few years of your life, your current life insurance policy may leave a gap between its coverage and what your family needs/has grown accustomed to.
   5. Estate Planning: Another people tend to purchase life insurance is to transfer wealth or leave an inheritance. As you grow older, you may start to think more about what kind of legacy you want to leave behind. If you have been focused on other life insurance needs up to this point, it may be time to take a new look to see if you will owe any estate taxes upon your death and/or what expenses your estate might incur. You will also want to consider whether you would like to leave behind any finances/property for your children, beneficiaries, or a favorite charity.

Life Insurance Creates Financial Safety and Security

Do you fit in any of these categories?  Is there a sign for you to seek financial coverage for you or your family?  Sometimes, the right Life Insurance can provide an excellent financial investment option for your future loved ones.

If one of these top five reasons is currently going on in your life or you are unsure if you should increase your coverage, give Dickey McCay a call and we will be happy to guide you in the right direction with years of experience and expertise on our side. Together, we will take the time to determine whether your life insurance coverage is still enough to take care of the people you love.