The idea of life insurance can be pretty intimidating since it makes us think about our own mortality. While it’s not always necessary, there are certain times in life when you really need to seriously consider and explore life insurance options. There are various types of life insurance to choose from.
### Getting Married
I first thought about life insurance when I got married. The goal was to ensure my spouse would be financially secure if anything happened to me. At this stage in life, life insurance becomes important if your income is crucial for paying bills and your absence would create severe financial problems for your spouse. Life insurance acts as a safeguard, offering financial support for bills, funeral expenses, and everyday costs. Though it’s hard to think about, safeguarding your spouse’s financial future is important when you get married.
### Having a Family
When my first child was born, it triggered my next consideration of life insurance, and that’s when I finally bought a policy. Becoming a parent changes your perspective on many things. An untimely death can create significant emotional and financial hardships for your children. Having life insurance can help ease these burdens. I made sure to list both my children and my spouse as beneficiaries to create a financial safety net for their future. Hopefully, they won’t ever need it, but it’s there as a protective measure while I guide them toward good financial habits.
### Types of Life Insurance
Once you’re considering life insurance, it’s crucial to find the policy that fits you best. It’s more complex than it seems because of the many types and providers out there.
### Term Life Insurance Plans
I prefer term life insurance, which covers you for a fixed period—common terms are 10, 20, or 30 years. I chose a 30-year policy and don’t plan to renew it once it expires since by then, my kids should be independent. Compared to other options, term insurance is quite popular. It’s wise to check multiple providers, but I’ve stuck with Nationwide because they work hard to secure the best rates for all their insurance products.
### Whole Life Insurance Plans
Whole life insurance is different from term insurance and isn’t ideal for everyone. These policies are usually more expensive but offer lifelong coverage and possible dividends. It wasn’t practical for me, so I opted for term life insurance instead. However, if you’re considering a whole life policy, there are many good companies to look into.
### Considering Life Insurance
Deciding on life insurance is tough due to its many factors. Clarifying your purpose for getting a policy, your age, desired coverage, policy duration, and whether you want term or whole life insurance can help you find the right fit.
Are you thinking about getting life insurance? If so, what made you consider it, and which policy are you leaning towards?