What is Life Insurance?

Of all kinds of insurance Life Insurance is the most difficult to discuss, since it is ultimately dealing with the death of a loved one. Life Insurance provides coverage in the event of your death. It is coverage that is meant to ensuring that your family continues to have financial protection even when you are gone. Which means that at different stages in your life you will require different kinds and amounts of coverage.

Stages of Life:

If we were to look at the stage of your life, we’d notice that different types of insurance would suit different life stages, needs, and financial abilities. You would have no need when you’re young, progressing to greater and greater need as you take on more and more responsibility, and finally beginning to diminish, as you grow older.

Single

At this stage in your life you would most likely not be responsible for any dependents or significant other. There would be no one who would miss your income should you pass away. However, it may be wise to consider getting life insurance since at this stage rates would be at their lowest.

Married

At this stage a small amount of life insurance would be recommended. Should either the unforeseen occur, the life insurance money could be used in the short term to pay mortgage/rent, credit card bills and funeral costs. This money could also be used to give the surviving spouse time to adjust to their new circumstances.

Children

At this stage of life, life insurance is crucial, since the care of your children would hang in the balance. They are more likely to be affected by the loss of your presence and financial support.

Retirement

During retirement, it is most likely that you would no longer be responsible for children. As a result there would be no one relying on your income and in turn your need for life insurance is reduced. However, it is still prudent to consider some limited insurance to cover funeral expenses, any debts, as well as to supplement your surviving spouse’s retirement funds.