Life insurance is about having peace of mind after you’re gone and making sure that your family is well taken care of. That’s why it’s important to buy life insurance as soon as you can, whether you have dependents or not. Similar to your retirement fund, don’t wait until it’s too late. Life insurance rates are primarily based on age and buying a policy early in your career will help keep your rates low.
While you may be young at the time you purchase life insurance, you may not be as healthy as you think. Believe it or not, the state of your health also affects your insurance premiums. Those who smoke, are overweight or in poor general health usually pay higher rates because they pose more risks.
If you are still considering purchasing life insurance, keep in mind that the benefits outweigh the costs – literally. When the inevitable happens, you want to make sure that you are not leaving behind a large amount of debt to your dependents. Upon your passing, there are a number of financial matters that need to be squared away so that your family isn’t burdened with paying them off such as:
- Funeral and burial costs
- Estate taxes
- Medical expenses
- College loans, bills and other outstanding debts
If you are the breadwinner in your family, think about the kind of estate you will leave behind for your spouse and children after you’re gone. Life insurance helps secure the standard of living you’ve created for your loved ones so that they remain comfortable in your absence. If you do not have dependents, the money that you leave behind could be used to fund charitable causes that you are passionate about.
You’ve spent your entire career caring for other people’s families. With life insurance, you will be able to care for your own family even if you aren’t there.