Younger people often forego any thought about life insurance. But as we get older, we start thinking about when the best time to start considering a policy is. Or, certain life events may trigger this reflection. So, what is the best time actually to start shopping for life insurance?
Many people realize they should get life insurance when they get married. Life insurance means that the surviving spouse can pay off the other partner’s loans like student loans, car debt, and mortgage. Life insurance can be invaluable for paying off the medical bills in the case of a life-ending accident or illness. The life insurance policy becomes a way to ensure that the surviving partner doesn’t have to sell thefamily home or end up declaring bankruptcy after paying all the bills.
Birth of a Baby
Many people start to shop around for life insurance when they have a child. They realize that they want to ensure that their family has the money to pay for the family’s living expenses if one or both adults are deceased. It might mean having enough to pay off the mortgage on the family home and setting aside a lump sum to pay for college if a parent dies, for instance.
Realization of a Special Needs Case
Life insurance proceeds may be the nest egg you need to fund a trust if you have a child with special needs. This allows your chosen custodian to have a large sum from which the interest and dividends can pay for everything your child needs for the rest of their life.
Life insurance is also sometimes bought because one of the partners becomes disabled. The life insurance payout guarantees that the surviving, disabled spouse has the money to pay for care and essentials for a lifetime.
Consult with a company like Juniper Life Insurance to find a life insurance policy that provides the right amount of money at a reasonable payment with the terms that suit your situation. After all, if you nominate someone who isn’t competent to handle the money for the beneficiary of the life insurance policy, you could be creating a major headache.
Life insurance proceeds are typically paid out outside of probate and are untaxed. The money from a life insurance policy can be used to pay for your burial even if the rest of your estate is in probate. The same money can be used to pay inheritance taxes, often allowing a family to pay their inheritance taxes so that heirs can keep the family farm or business. In other cases, the life insurance policy provides a large enough lump sum that it provides a de facto pension for a surviving spouse to replace the income of the deceased.
Many life events could prompt you to start searching for life insurance. In all cases, try to find the best policy for your situation and make sure you understand every policy clearly.