Purchasing life insurance can be a daunting undertaking – besides the obvious reminder of your own mortality, the cost involved, and features and options to choose from, can be overwhelming.
But once you make your initial life insurance purchase, your job as an insurance consumer isn’t done. There are many factors in your life that could influence how much coverage you should have – and these factors change as your lifestyle changes, too.
Below is a list of life stages. Compare where you are – and where you’re going – with the needs detailed with each stage. If you haven’t considered if your insurance meets your needs lately, this may serve as a helpful reminder of the expenses your loved ones may use your life insurance benefit for.
Single without children
You may need life insurance to help cover any outstanding debts, such as credit cards, student loans, or car loans. Additionally, life insurance can provide funds to cover your funeral expenses.
Single parent
Life insurance is a crucial safety net for single parents, helping to ensure that your child(ren) will be financially supported even if the unexpected happens. It provides added peace of mind, allowing you to focus on raising your kids without the constant worry of what might happen to them if you're no longer around. With a solid life insurance policy, you can help pay for education costs to daily living expenses and give your children the stability they need to help them thrive.
Married with dependent children
If you were to pass away, your spouse would likely need financial assistance not only to settle your affairs but also to replace the income you previously contributed to the household. Although this may seem like a large sum of money, it can be used to help pay off the mortgage, create college funds for your children, cover childcare expenses now that your spouse is the sole caretaker, and manage day-to-day costs such as groceries, household bills, and car repairs.
Divorced or remarried
Some divorce settlements require that a specific amount of life insurance coverage be maintained for a former spouse. That amount could be higher if dependent children are involved. If you remarry, you should also consider an insurance amount that would meet your current spouse’s needs. The amount of coverage increases if you had children from your first marriage and second marriages.
Married and retired with no dependent children
Some people feel their insurance needs decline as they age, but in many cases an insurance benefit can serve as a way to help preserve your estate. You may want to consider helping to provide retirement protection to your spouse with a new or increased life insurance coverage amount. With the right planning, your spouse could use your life insurance benefit to live comfortably in retirement as you always planned.
Becoming a grandparent
Life insurance can be a powerful tool for grandparents who wish to leave a lasting legacy, helping to ensure that their loved ones receive a financial gift that could make a significant difference in their lives. It provides support for adult children and grandchildren, whether it's helping with education, starting a business, or covering unexpected expenses.
Source: Milestones: journeying through modern life - Office for National Statistics (ons.gov.uk)
Life insurance can be a way to help protect the important people in your life – no matter what stage you’re in. Help make sure you and your loved ones are protected. Not sure how much life insurance may be right for your life? The AICPA
Life Insurance Needs calculator is a quick and easy way to help you find out.
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