Some of the most frequent questions we encounter pertain to the life insurance needs of our customers. From our experience, the importance of life insurance is misunderstood by many people. A  life insurance policy is intended to be a source of protection for you, your family, and anyone who depends on you for financial support. A well-designed life insurance policy will provide your dependents with financial stability after your death. But a life insurance policy may also benefit you if you have no dependents. Based on your stage of life, there are a few basic guidelines you can follow to help determine whether life insurance is a good option for you.

Young, Single Adults: A life insurance policy would be wise if you help to financially support another person (an elderly parent, sibling, relative, etc…). If not, the only other reason you may want to consider life insurance is if you want to pay for your own funeral expenses. Otherwise, life insurance will probably be unnecessary until your status changes.

Young, Couples with No Children: This should be a decision you consider and make together. You need to consider your individual sources of income. If one of you passes away, will the other’s income be enough to support them? If not, or if only one of you is working, you should definitely consider finding an affordable life insurance policy. While you may consider it a financial burden, you have to understand the intention of life insurance: to prevent your loved ones from suffering a significant financial burden in the future.

New Families: If you don’t have life insurance by this time, you should certainly consider purchasing a plan now. This is a time in your life when your spouse and children are extremely dependent on you and your income. Plus, life insurance rates typically increase as you get older, so buy young! You should always aim to purchase a plan before the age of 35.

Established Families: We cannot stress the importance of life insurance if you have a family that depends on you. Life insurance should be considered for both parents, even if only one of you works outside the home. Although a stay at home parent does not provide an income for the family, he or she provides valuable services to the home and family.

Children: In general, child life insurance is unnecessary. Nobody depends on them financially or for valuable services. While some promote the idea as a convenient way to save money for college, you are better off investing or saving the money through other methods. The only reason you might consider purchasing life insurance for your children is if you feel it might be difficult to pay for funeral costs if they should pass away.

Mature Adults: At this point in your life, your specific lifestyle is the only determination for whether you need life insurance. If you do not have any dependents, life insurance is probably unnecessary - unless, of course, you need it to help pay for your own funeral costs. If you do have a spouse, children, or someone else relying on you for financial support, life insurance is a great idea. However, be aware that purchasing life insurance at this age can be very expensive. Like we stated before, you should always aim to purchase a policy before you reach the age of 35.

And that’s only the beginning! Once you decide that life insurance is the best choice for you, there are a few other decisions you need to make, such as deciding on term, whole, universal, or variable universal life insurance. We will expand on this topic soon through another blog entry. Please leave a comment here if there are any specific questions you have on life insurance, and we will address those questions in our next article.

If you have decided that an affordable life insurance policy is a good option for you, please visit our Term Life Insurance Quote page for a free online life insurance quote. We will match you with a life insurance company best suited to your needs, and provide you with low cost life insurance options.