The Journey of Life Insurance
Your life insurance needs can change as you experience different life moments.
From starting a career to buying a home, various milestones affect your life in many ways. However, it’s easy for people to forget these major life events should trigger you to look into buying life insurance or reviewing your policy to ensure it aligns with your current situation.
Take a look at these major events that can trigger a need or change in life insurance to help determine if it’s time for you to examine your insurance needs.
Starting Your Career
You have big plans for your future. Help build a secure financial foundation for it. The younger and healthier you are, the less expensive life insurance can be. Buy a policy now and save money in the long run.
The cost of life insurance can increase as you get older. Locking in coverage today is a great way to care for the people who depend on you financially in the future. Employer-provided life insurance policies are typically only one to two times your income and may not be transferable if you change jobs.1
Getting married is an exciting and important moment in the life of two people, so it’s important to start your life together in harmony. In any successful marriage, communication is key. Open and honest communication can help ensure you’re on the same page with your plans for the future.
As you combine family, friends and furniture, help financially protect the life you’re building together with life insurance for you and your spouse. Life insurance can help your spouse cover bills, such as a mortgage, and maintain their standard of living after you pass. In fact, the main reason adults 25-34 start shopping for life insurance is because they got married.2 An Amica Life specialist can help you understand your needs and the benefits of term and whole life insurance.
Buying a Home
You want to ensure your family always has a place to call home. A life insurance policy can help cover the mortgage, so your loved ones can stay in their home if you pass unexpectedly.
With the median monthly mortgage payment just over $1,500, it’s easy to see why you should make room for life insurance when buying your home.3
Welcoming a Child
Your children are your world. Help safeguard their financial future so they can fulfill their dreams in the event of your passing.
The cost of raising a child to age 17 is $233,610 (not including the cost of college).4 With that number in mind, it’s easy to see how it could be difficult for one person to cover all of their expenses. That’s where life insurance can help play a role in financially protecting them, as well as your spouse.
Raising a Family
As your family grows, so do your responsibilities. Loss of income can be detrimental to long-term savings goals. Help ensure your children are able to finance their education.
The average cost of one year of tuition, fees, and room and board at a public university is $21,370.5 The benefits of life insurance vary from person to person, depending on their needs, and can include building a secure financial foundation, financial protection, as well as supporting your home and family.
As your children leave the home, your financial priorities may shift, but there may still be a need for life insurance. Did you know 44 percent of empty nesters carry a mortgage?6 Having coverage in place can help financially protect the ones who rely on you, like a spouse, aging parent or child.
With the median monthly mortgage payment just over $1,500, it’s easy to see why you should make room for life insurance when buying your home. 3
When it comes time to retire, make it a carefree one. It was found that 73 percent of consumers had outstanding debt when they died, carrying an average balance of $61,554.7 Life insurance can help provide financial support for family members who depend on you and cover final expenses.
Whether you get married, buy a home, have children or all of the above, it’s important to buy life insurance and revisit your needs as they change.
So, if you want to protect your family and loved ones, pay off debts and other expenses, add more financial security to your life, leave an inheritance or bring peace of mind, take a moment to evaluate your life insurance coverage needs as you go through life moments.
- Why Free Life Insurance at Work Might Not Be Enough, NerdWallet, 2018.
- 2017 Amica Life Financial Peace of Mind Survey.
- Financial Characteristics for Housing Units With a Mortgage, U.S. Census Bureau, 2017.
- The Cost of Raising a Child, U.S. Department of Agriculture, 2017.
- Tuition and Fees and Room and Board Over Time, CollegeBoard, 2018.
- Empty Nest Households Are on the Rise, Zillow, 2017.
- Americans Are Dying With an Average of $62K of Debt, Credit.com, 2017.
ALIC50119 (exp. 9/20)