A life policy is one of the best tools to protect your loved ones in case one day you are absent, but there are three scenarios where it is most important that you have them
An insurance policy can provide financial support for your loved ones once you’re gone, so it’s generally considered a smart investment, although there are certain scenarios where it’s even more important to have it.
Below, we share three of them.
1. When you get married
Buying life insurance is generally recommended whenever you’re making a big life change, and getting married is definitely one of those times.
First, life insurance ensures that your spouse has the funds they need to cover your funeral, burial and end-of-life expenses in the event you pass away, including any medical bills you leave behind, CBS reported.
Having a life insurance policy is especially important if your spouse depends on your income, since it provides them with funds they can use to support themselves in your absence.
If someone depends on your income, you should consider buying life insurance.
2. When having children
Being a parent means having more people who depend on your income to cover their basic needs, such as food, housing, etc.
One option to protect your family in the event of death is to take out life insurance. This could cover the aforementioned expenses, as well as provide funds for future events like your children’s college education or their weddings.
In addition, life insurance could help pay off debts like your mortgage, credit cards, and other financial obligations that could be a burden on your family once you’re gone.
3. When you have a business
If you are a business owner, having a life insurance policy may be a great idea. Not only will it allow you to cover your business debts or compensate your family in the event of an unexpected death, but it will also protect you in case you have partners in your company.
For example, if an owner with a 50% interest in the business dies, that part of the business is not dissolved or absorbed by the other partner.
And it is that, if the heirs are insured, they can use the money from the policy to buy the deceased’s part of the business.