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One of the key questions surrounding life insurance is when you should get a policy. Usually, an 18-year old has no reason to get a life insurance policy. But is that always the case? And how do you know it’s time for you to get a life insurance policy?
The answer to both questions depends in large part on your personal beliefs. Insurance is a speculative investment, after all. That said, there are certain factors that make it very worthwhile for you to consider getting a life insurance policy.
You have dependents
Let’s start with an easy one. If you have dependents, you should probably get life insurance. A dependent is anyone who relies on you as their primary source of income. That usually means you have children or elderly parents to take care of.
The status of your dependents will significantly affect the type of policy you should buy. If you want to make sure you’ll leave something for your children, for example, then whole-life insurance might be the way to go.
Or you can get a 30-year term policy, hoping that your kids will be financially independent by the end of the coverage period.
You work, but your spouse doesn’t
Remember, your spouse can count as a dependent too. If you’re your spouse’s primary source of income, you need to make sure they have money to get by if something happens to you.
The same applies if both of you work, but your spouse makes much less money than you. A life insurance payout can help them keep the house and maintain their standard of living until they can get their financial situation in order.
It also allows your spouse to have some time to grieve without worrying about their financial situation.
You plan on having a family in the future
Even if you are young and single, as long as having a family is part of your life plans, there’s no harm in getting yourself a life insurance policy.
Policy providers have “starter policies” for people in that situation, which allows you to start paying premiums now, which means your premiums will be much lower by the time you get yourself a family.
You are a stay at home parent
Just because you aren’t bringing in income, it does not mean that what you do has no value. That’s true in a moral sense, but also in a financial sense.
If you are a stay at home parent, for example, your sudden departure may lead to an increase in house expenses, as your spouse will need to hire a caregiver in order to continue working. Life insurance can help make sure those costs are covered.
You are a primary caregiver
Providing primary care for your parents or aging relatives puts you in a similar position as being a stay-at-home parent.
Your sudden departure will mean that another family member will need to take over your role, or the family will need to hire a professional. Both of which can have financial implications.
If you are performing critical caregiving functions, it’s a good idea to have a life insurance policy of your own, no matter your age.
The Bottom Line
Things really come down “uncertainty” and the act of preparing for it accordingly. You just never know what’s coming around the corner. Life can literally flip upside down in the blink of an eye.
Though for many, the idea that they should protect against something such as death, let alone pay money for it, is a tough one, because after all, who wants to think about death or prepare now for something most of us anticipate is well into our future?
However, regardless of your views or reasoning, there are many reasons why it’s a wise idea to consider life insurance. This is especially true if you support a family and are getting up there in age. A life insurance policy or a lack of one in the event of the unfortunate, will impact the lives of loved ones very differently.
If you are still not sure about life insurance or feel it may be time to get a life insurance policy, visit https://www.insurancehero.org.uk/ to compare life insurance policy options and prices.
There are a ton of great deals on different policies to fit your needs and budget. Don’t hesitate to compare options available and speak to a specialist if further clarification is needed.