Why (and When) You Need to Think About Life Insurance

In this guest post from Amy Galliano of AEG Insurance, you’ll learn why you need to think about life insurance and when are the best times to reevaluate your life insurance needs.

Why You Need Life Insurance

When I first begin working with a client on their life insurance needs, they generally start by saying something to the effect of “I do not know anything about this process” or “I have no idea where to begin.” It is often said that the hardest part of any journey is the first step. Life insurance is really no different. September is Life Insurance Awareness Month so it is a great time to discuss this topic. First, let’s start with the why.

Why do you need life insurance? Who benefits? Why is this helpful? Why do I consistently say that life insurance is really “love insurance” on social media? These are all valid questions. 

Life insurance does many worthwhile things. But the main point is to provide your beneficiary with a death benefit once you pass away. Your family can use this benefit to pay for burial expenses, the mortgage, the never ending costs of paying for your children’s needs, or just getting life back on track. 

Losing a loved one is hard. Grief is taxing enough without worrying about financial concerns. None of us like thinking about death. However, this is why I call life insurance “love insurance.” I can say I love you all day but showing my love is different. It requires forethought and action. Having life insurance is a way of taking action to protect your loved ones and show they are worth protection from the worst possible circumstances.  

When Should I Get Life Insurance?

Being young and healthy is music to a life insurance agent’s ears. Life insurance rates are based to a large extent on your age and medical background. Thus, being young and in good health results in lower insurance premiums and quicker application processing time.  Consequently, it benefits you to start this process early.

For many people, big life events are also pivotal points to start thinking about life insurance (if they haven’t already) or to reevaluate their life insurance policy (if they have one). While we can address life insurance needs at any time, there are specific times in our lives when assessing our needs just makes sense. In our industry, they are referred to as milestones. It is basically the times when our needs change because life has changed.

These milestones are:

• Graduating from college or getting your first job
• Purchasing a home
• Getting married or divorced
• Having a child
• Starting a business
• Considering long term care needs
• Planning for retirement

If you have recently gone through one of these milestones or will be soon, consider research out to a life insurance broker to discuss your options and make sure you have a plan that fits your needs.

Final Thoughts

Again, young and healthy in the life insurance process is always good so even if none of these circumstances apply to you, you can still review and price your options. I suggest a review of a life insurance policy at least once a year to make sure that contact information and beneficiaries are correct and updated. Life changes year after year so it is important to take stock of your needs and plan accordingly.

While no one would blame you for being overwhelmed by the process, a great insurance broker will walk you through each step along the way. Consider it an investment of time and money into your family’s future and wellbeing. It is also a huge relief once the insurance is effective so know that there is a light at the end of the life insurance tunnel in the form of security and reassurance for the future.

If you liked this article, please consider liking, subscribing or sharing with others. It’s always a big help! Interested in related content? Check out Department of Adulting’s posts on life changes including buying your first home, boosting fertility in your 30s and 40s, and investing for retirement.

About the Author

Hi, my name is Amy. I am a Mom and wife, yogi, baker and insurance broker with a Master degree in education. September is Life Insurance Awareness month.  I like to use this time to educate readers about the importance of life insurance to their financial security . You can find my writing on this topic and many more on my blog. You can also follow me on Facebook or Instagram.