Life insurance can be a difficult thing to talk about. Considering that it is less about you and more about the people and responsibilities you will leave behind when you die, not to mention to morbidity of the discussion in general, it is an easy topic to want to ignore or put off for another day. However, having your affairs in order is incredibly important no matter your age, and a big part of that puzzle is having life insurance.
You’re never truly ready
Nobody knows how or when their time on Earth will come to an end, but we all understand that the day will inevitably come. While everyone likes to think that they can get their affairs in order in their later years, the truth is that your estate should be in order early so you have time to adequately address all potential issues. If the events leading up to death involve long hospital stays, or if you should happen to pass away before a loan can be paid off, money from life insurance can help pay off final expenses or other costs so they aren’t passed on to your family.
It can be affordable
A common misconception you might have is that life insurance is of the most use for older adults nearing the end of their lives. However, Mila Araujo, an insurance professional writing for The Balance, points out that the younger and healthier you are when you start paying for life insurance, the more affordable it is. While you still might end up paying more over the course of your lifetime if you’re blessed with many years, you can rest assured that you will be prepared to provide for your family when you pass on.
You have dependents
One of the scariest things you might realize when you become a parent is that the lives you brought into the world depend on you for everything. Financial Advisor Kristin O’Keeffe Merrick puts it very bluntly, writing for Forbes that “you may have put your entire family at risk” if you have children but do not have life insurance — particularly if you should suddenly pass away before your children become self-sufficient adults. Investing in a life insurance policy prevents your children and family from incurring the costs of your final expenses, and it can also provide for them as they figure out their next steps.
Your business is tied to you
Owning a small business is a big commitment, but if you have a sole proprietorship or another business structure where you are made personally liable for expenses and debts, those liabilities can fall upon your family after you’ve passed away. NerdWallet’s Aubrey Cohen points out that all debt and management burdens fall on your survivors in the event of your death. Your family might not be able to manage without your expertise, and if the business is in debt or not profitable enough to sell, they could lose their assets as a result. If this is a potential issue, you should make sure you choose a policy with a high enough payout to cover these larger-than-normal expenses.
No matter how old you are or what stage of life you’re in, you should seriously consider investing in life insurance as soon as possible. For more details and help making a decision about the right policy for your needs, speak with a trusted financial advisor.