Life insurance is a type of financial product that is designed to provide your heirs with a financial payment upon your passing. These benefits exist to ease the financial challenges that come with the loss of a loved one — especially one that provides for multiple dependents. Life insurance could provide you with peace of mind while providing for your loved ones in the future.
How Much Should You Have?
Your age and other factors will determine the answer. But certainly, at least enough that your family won’t be left to pay for your funeral and then try to exist having lost a major income they depend on for the mortgage and other bills.
There is a common misconception that life insurance is for the elderly. In reality, most adults could benefit from having some form of coverage in case the unexpected happens. According to the Insurance Information Institute (III), the gap between the amount of coverage in place and the amount needed has never been larger.
Determine if you could benefit from more coverage by reviewing these 6 signs that you need to take out a policy.
1. You Get Married
A part of marriage for spouses is to promise to provide for each other, in good times and bad. With the right life insurance policy in Texas, it could be possible to continue providing for your loved one even after you are no longer living.
This type of protection is important in relationships where one spouse is the primary provider. However, the loss of income that comes with a sudden and unexpected passing can be difficult in any marriage. Any married couple with joint expenses that one spouse cannot carry on their own could benefit from robust coverage. You could provide your spouse with financial stability after you’re gone.
2. You Have Debt
The thought of adding an extra expense might not seem like a great idea if you are already in debt. However, some debts like your mortgage will continue after your passing. If those debts are not paid, your loved ones could lose their home or other property held as collateral. Your life insurance coverage could pay off these debts, ensuring that your loved ones are not under financial strain following your passing.
3. You Have a Child or Children
A growing family is one of the obvious signs that you need extra protection. These policies could protect your children after you are gone, especially if your kids are still young. Not only are the costs of raising a child significant today, but those costs will only increase over time.
According to the Bureau of Labor Statistics, inflation is expected to continue for the foreseeable future. That means the costs associated with caring for and educating your children will only go up as time goes on. Life insurance could be invaluable in providing for your children if you are no longer there to support them.
There are unexpected costs and expenses in life, and that is especially true when it comes to children. If the cost of educating a child increases exponentially, your current savings might not be enough to provide for them. Your benefits could ensure that they receive the education they need.
4. You are Earning More Money
Most people purchase life insurance to replace the income they would have earned had they survived. However, the amount of income you make is likely to change over time. Even if you already have a policy, the amount of coverage you originally selected might no longer make sense for you and your family.
It is important to regularly review and update your policy if you already have coverage. If you have not yet purchased it, there may not be a better time to get one than after a substantial increase in income. Thankfully, there are many life insurance options available to you. Keeping and updating a policy could ensure you are prepared to provide for your loved ones in the long run.
5. You Support Aging Relatives in Texas
At some point in life, you might become the caretaker to one or more family members. This could be your parents, grandparents, or other relatives. These individuals likely depend on you for their day-to-day needs. In some cases, they could be entirely dependent upon you financially.
If you are caring for parents or other relatives, a life insurance policy could provide you with peace of mind knowing they will be well cared for should anything happen to you. These benefits could provide for their daily needs and ensure they are not left without support.
6. Texans Who Retire Should Consider Life Insurance
There are plenty of things to consider when planning for retirement. Obtaining the right amount of life insurance is one of those things. After a lifetime of earning a living, you are transitioning to a period where you will live off those earnings instead of remaining in the workforce. This is a major change, and it can alter what you need from a life insurance perspective as well.
If you do not have a policy before retiring, this coverage could ensure that your loved ones have what they need after your passing. Even if you currently carry a policy you purchased during your career, it’s a good time to evaluate your needs.
Sudden and unexpected costs can appear following an unexpected passing. If you and your spouse are retired, they might not have the resources needed to address these expenses following your passing. Your policy could provide your loved ones the benefits they need in retirement.
Find an Affordable Life Insurance Policy in Texas Today
You might be surprised to learn just how much you need life insurance. If you are considering a new policy, Baja Auto Insurance is here to help. To get started, get a free quote for life insurance online, visit one of our offices in person, or call us at (800) 401-6870.