When is it a good time to look at your life insurance coverage? The following is a list of triggering events that require a review of your policy.
When you are in your 20s or early 30s you may not think you need life insurance. In reality, buying life insurance when you are young is a smart financial decision. You can purchase a substantial amount of term insurance coverage for a very low premium and lock in rates for decades. If you are healthy and purchase convertible term, you guarantee that you will always be able to purchase coverage when your term period expires – even if your health status changes.
If you are a newlywed, you may be purchasing a new home and starting a family. Should something happen and you were left alone, life insurance would be there to cover the mortgage payments and replace lost income. Once you have children, the need becomes even more important. A life insurance policy (term or permanent) that pays a lump sum or a regular income after your death can ensure your spouse and children are financially protected.
If you own a business, you may want to buy life insurance to protect the company you’ve built. If you were to pass away, what would happen to your company? With life insurance, you can fund a buy-sell agreement that would ensure the remaining partners are in a position to buy your ownership stake. A good option in this case may be term life insurance for perhaps 20 years, where the cost of the insurance would be lower than permanent life insurance and still provide protection for your heirs and business partners.
As the years progress, a long-term care need could arise that could deplete retirement savings. Adding a long-term care rider to a life insurance policy provides peace of mind and independence, knowing that your future is secure and your legacy is intact.
For more info see: BizJournals
Kate's a practicing Attorney for over 20 years. She is a pet rescuer and a strong supporter of pets Rights. Kate expertise is Real Estate, Probate, Estate Planning, Personal Injury, and Business contracts. Kate is happy to discuss any legal or pet matter you may have and if she cannot help; she is more than happy to point you in the right direction. Kate Forte 17 Good Hill Rd Woodbury Ct 06798 Office 203-598-8847 Fax 203-841-1116