This post is part of the TermLifeInsurance.com blog tour, which helps spread awareness of the importance of providing financial security for your family. September is Life Insurance Awareness month, so learn more with LifeHappens.org and how life insurance can protect your family and your finances.
This post is by staff writer, Kayla.
Wow you guys! How did we get to September already this year? I don’t know about you, but for me time is just flying by. With some very exciting events going on, like assisting Cat with the launch of her new course this summer, and quitting my job a few weeks ago, I have not put a lot of thought into the big picture of life as I’ve just been trying to keep everyday life afloat.
I know Cat has talked about the importance of life insurance a few times on this blog in the past, but seriously it’s one of the most important things you can do to protect your family.
No matter what stage you are at in life, you definitely need to make sure you have life insurance.
Even if you’re single and have no kids, life insurance is important. There are some debts that are transferrable upon death, especially if you had a co-signer on any of your loans. For many young, single people, this could mean that mom and dad helping you get a house loan will come back to bite them in the hiney if you pass away before that debt is cleared.
Sure they can sell the house to try and pay off the debt, but if the market is down they may still have to come up with additional money to clear your debt, not to mention having to pay for any medical bills and other end-of-life expenses that come with the death of a loved one.
After you say “I do” you need to make sure that your life insurance and other beneficiaries are up-to-date so your new spouse is listed on your policy. (Actually, you should do this anytime you experience a major life change, like death, divorce, the birth of a child, etc.) Many young couples I know have put off buying life insurance because they are “young and healthy” or because they don’t earn a lot of money so they assume their spouse will not have a hard time making ends meet if they would pass away. All of these excuses are just that – excuses.
Being young and healthy is actually a great reason to go ahead and apply for life insurance right away. You’ll have an easier time getting approved for coverage and your premium will be a lot lower while you are young and healthy.
Even if you aren’t the breadwinner in your family, you still need life insurance to make sure your spouse isn’t left with a large bill to pay for your end-of-life costs, and if you are in a situation like Cat and her husband, where one of you is in school, that spouse might suddenly find themselves unable to continue their education if the breadwinning spouse is the one to pass away without insurance.
Children complicate things even further, and although they are a blessing they also cost a lot of time, money, and energy to raise. If the breadwinning parent were to pass away without life insurance the other parent would find themselves in a tough situation, but even if things were reversed and the primary caregiving parent of the kids passed away, the breadwinner spouse would likely be forced to hire someone (and pay them) to do things their spouse used to do.
Life insurance can help ease all of these burdens and more.
Have I convinced you to consider life insurance yet? 🙂