For many people, getting life insurance makes a lot of sense. A policy could go a long way to helping family members get back on their feet, should the worst happen. Newlyweds, parents and homeowners often don’t mind devoting a bit of their personal time and money to setting up this peace of mind for themselves and the ones they love most.
But what if you don’t fit into one of the common life insurance categories? You might be surprised to learn that getting covered may be a smart move for you, too. Let’s look at three types of people who might also need life insurance:
Single, childfree adults
Conventional advice says that only people who have a spouse, children or a mortgage need life insurance. This thinking is somewhat old fashioned, designed for a time when people typically settled down at much younger ages. Today, many adults are putting off these “big three” life events until their 30s and beyond. But that doesn’t necessarily mean they don’t need life insurance.
Generally, there are two times when younger adults may want to consider getting life insurance: if they hold large debts or if someone relies on them financially.
Debts like student loans, credit card bills and car payments don’t disappear when you pass away. They typically become the responsibility of your next-of-kin or the loan’s co-signer. If you’re unmarried and in your 20s, this usually means that a parent or other family member must pick up the tab for your debts if you die suddenly.
Similarly, even if you’re single and childfree, that doesn’t mean that you have no financial obligations to loved ones. A parent, grandparent, or de facto partner might rely on your paycheque to help cover rent or other household bills. An accidental death or terminal illness diagnosis could leave them without the money you’d normally contribute.
Life insurance could be a good way to help your family and other loved ones get back on their feet, if the worst ever happened to you.
Stay-at-home parents
Many families understand the wisdom in getting life cover for their main breadwinner. Without their pay, the household would probably be in a lot of trouble. Dual-income couples may also decide that they should both have life insurance. Even if this second salary just makes the household budget a bit easier or tops up a savings account, a life insurance policy could help your family maintain their current standard of living.
But what about a stay-at-home parent? They may not earn a paycheque, but they do contribute to the household finances.
Think about it this way: if your spouse were to pass away, you’d likely need some help around the house to keep things running smoothly. This might include paying someone else to look after the children, clean the house, do the grocery shopping and cooking, and organizing everyone’s schedules. If you’ve ever needed to hire a babysitter or priced cleaning services, then you know how quickly these costs can add up!
Getting life insurance for a stay-at-home parent could help your family carry on if someone were no longer able or there to do all these jobs around the house.
Frequent travelers
When people plan a vacation, they probably aren’t thinking about all the things that could go wrong on their trip. But if you bring it up, they’ll likely list things like cancelled flights, losing their luggage or extreme weather as their top holiday concerns. However, the worst can still happen during a well-earned vacation, including passing away far from home.
You might want to consider getting life insurance to supplement your travel insurance policy—just in case.
You might think that travel insurance is enough to take care of anything that might go awry, but in some cases, it may not offer adequate cover. Many travel insurance policies offer a payout if you die during your trip, but usually only for death caused by an accident. Anything else—such as dying of a heart attack or serious illness—is not covered. Your family could end up with large bills to transport your body back home and for the funeral itself.
Life insurance policies typically payout for more than just accidental death. They also offer larger benefit amounts, which could provide your family with more ongoing financial support when they return home.
When to get the coverage you need
Deciding if you need life insurance is an important decision that most of us will probably make in our lifetime. Knowing when you may want to take out a policy could make this choice an easier one. You may want to review your lifestyle, financial goals and budget to see if now is the time to get covered.
No Comments