Protecting Your Earning Power
Insure the stages of your life
No matter what stage you are at in life, chances are you need some type of insurance to protect yourself and the assets you’ve worked hard to accumulate.
Life insurance when you’re single
Most single people don’t think they have a pressing need for life insurance, but you should consider life insurance if:
- You are providing financial support for aging parents or siblings
- You are carrying significant debt you would not want to pass on to family members
Life insurance when you’re married or getting married
Most young couples and families depend on two incomes. If you died suddenly, would your spouse have enough money to cover your funeral costs, credit card debts, outstanding loans, and their daily living expenses?
Life insurance when you have children
Having a child is very rewarding but also expensive. Life insurance helps to ensure that your family can maintain their current lifestyle. It can even help fund longer-range needs like college tuition and retirement.
Even parents who don’t work outside the home need life insurance, because they provide services that would be expensive to replace such as childcare, transportation, and household chores.
And what about single parents? They need life insurance more than anyone because their children rely on them for everything.
Life insurance for pre-retirees and retirees
If your children are on their own and your mortgage is paid off, you might feel that your need for life insurance has passed. But if you died today, your spouse could outlive you by 10, 20, or even 30 years. Many retirees still have financial obligations such as the mortgage on a second home, which could become burdensome if a spouse dies or becomes disabled.
Life insurance helps to ensure that:
- Your spouse is protected
- Your estate will be passed on, intact, to your survivors
- A legacy can be provided to your children and grandchildren, even if you use up most of your assets during your lifetime
For all of these reasons, if you’ve been thinking about dropping your coverage, you may want to reconsider. In fact, Americans age 60 and older are the fastest growing market for life insurance purchases.
In short, life insurance is a simple answer to a very difficult question: How will my family manage financially when I die? It’s a subject no one really wants to think about, but if someone depends on you financially, it’s one you should not avoid.
Read more about the different types of life insurance.
Other types of insurance
Other types of insurance are a must as well, no matter what stage you are at in life:
- Car insurance
- Health insurance
- Home insurance, if you own a home
- Renter’s insurance, if you are currently a tenant in a rental property