Who Should Buy Life Insurance?
July 25, 2024 | Tom Peterson
Life insurance is a complex subject that can seem intimidating at first. As a young and healthy individual, it’s easy to put off purchasing life insurance. However, it’s important to consider buying a life insurance plan before you actually need it. There are many different benefits that come with life insurance, such as providing financial security for your loved ones in the event of your death or even offering monetary support in case of a critical illness or disability.
Watch our Life Insurance 101 On-Demand Webinar
You’ll learn the basics of life insurance, including the different types of life insurance, how to determine the coverage you need, which life insurance type is right for you, and more.
Who Should Buy Life Insurance?
Here are a few examples of people who should consider buying life insurance. If you’re among these, give us a call to discuss your needs and options.
- Parent with minor children: If a parent dies, the loss of their income or caregiving skills could create financial hardship. Having a life insurance policy in place can ensure kids have financial resources until they can support themselves.
- Parents with special-needs adult children: For children who will require lifelong care, life insurance can make sure their needs will be met after their parents pass away.
- Adults who own property together: Married or not, if the death of one adult would mean that the other could no longer afford loan payments, upkeep, and taxes on the property, life insurance may be right for you.
- Adult or seniors who want to provide an inheritance: Many individuals decide to leave a meaningful legacy or inheritance for their family and loved ones. One of the ways this is achieved is using legacy life insurance.
- Elderly parents who want to leave money to adult children who provide their care: Many adult children give time and energy to care for an elderly parent who needs help. This help may include direct financial support. Life insurance can help reimburse the adult child’s cost when the parent passes away.
What to Know About Getting Life Insurance if You’re Over 65
- Young adults whose parents incurred private student loan debt or cosigned a loan for them: Young adults without dependents rarely need life insurance, but if a parent will take on a child’s debt after their death, the child may want to buy life insurance to cover that debt.
- Young adults who want to lock in low rates: The younger and healthier you are, the lower your insurance premiums. A person in their 20s might buy a policy without having dependents, if there is an expectation of having them in the future.
- Wealthy families who expect to owe estate taxes: Life insurance can provide funds to cover the taxes and keep the full value of the estate intact.
- Families who can’t afford burial and funeral expenses: A small life insurance plan such as a final expense policy can provide funds to honor a loved one’s passing.
- Businesses with key employees: If the death of a key employee, such as a CEO, would result in a financial challenge for a company, that organization may have an insurable interest that will allow it to purchase a life insurance policy on that employee.
If you’re still unsure about where to start, learn the basics about the different life insurance plans and download our free life insurance e-book.
Life insurance provides financial protection for people in all stages of life. Whether you’re young, married, single, or have a family, life insurance offers flexibility and peace of mind, ensuring that your loved ones will be financially secure in the event of a natural end of life or unexpected tragedy. Contact Twin City Underwriters to get started today.
This is an updated blog post that was originally published in 2021.
Choosing a life insurance plan can be difficult. Working with an insurance broker can help you find a plan that fits your needs. Schedule a one-on-one meeting with one of our life insurance brokers to get your insurance questions answered!
