You are currently viewing Do I Need Life Insurance? Knowing is Half the Battle
  • Post last modified:October 5, 2020
  • Post category:life insurance

If you are wondering “do I need life insurance?”, remember that even though no one wants to think that they could die early, it is important to consider those possibilities when you have people who depend on you.

creative image of life insurance terms written out to form a heart shape.

What is Life Insurance?

Life insurance is an insurance policy that will pay out a certain amount of money to beneficiaries should the insured person die. It’s especially important for families and business owners.  Should you die, your life insurance policy will help your spouse, children, and any other beneficiaries pay final expenses such as funeral costs and estate taxes, pay off debts, and will allow them to maintain the same standard of living that they had previously had before.

As you move through life, it is important to consider when you should buy a life insurance policy.   

Here are 6 signs that you need a life insurance policy:

  1. You have young children – This is the highest need category for life insurance.  In a single income household, the death of the breadwinner would leave the household without any income at all.  In addition, the death of a stay at home parent would mean that their working spouse would need to pay for domestic services such as childcare, cooking, and cleaning in order to maintain their previous living standard.  In a dual-income family, the loss of the income from one parent would leave the family with a tighter budget and the widow/widower would need to hire help for domestic tasks that were once shared.  It is important that the lives of parents are insured, to provide peace of mind and to prevent these difficult situations.  Your life insurance policy will assure you that your children will be cared for even if you are not around.
  2. You have children in college – The cost of post-secondary education is hefty and it is unlikely that a college student who relies on their parents’ salary to pay for tuition would be able to cover that cost without help.  A life insurance policy would support your older children until they are able to support themselves.
  3. You are married – Even if you do not have children who rely on you, your style of life is based on having the income of both spouses and should one of you die, finances could become strained for the other.  A small amount of life insurance that would help pay your mortgage or rent, your credit card debt and funeral expenses will give you peace of mind.
  4. You have a business partner – If you own a business with a partner, you should consider taking out an insurance policy on your partner’s life.  If your partner were to die, this policy would provide you with enough money to buy your partner’s shares in the company so that you do not have to sell your whole company.
  5. Your relatives rely on you – Most young, single people do not need a life insurance policy, however, some people have parents or other relatives who depend on you for care.  In this case, consider a policy that would help them if you were gone.
  6. You want to cover post-death expenses for your family – Like young adults; people over 65 do not usually need life insurance.  If your children have left home or graduated college and no longer rely on you for care, you do not need to purchase a large policy to protect them.   However, if you believe that funeral costs and estate taxes would be difficult for your family, a small life insurance policy would help them.
Infographic stating the differences between whole life and term life insurance.

In Conclusion

Once you have determined that you need life insurance, the next step is to research your options.  That’s where we come in. Give us a call at 860-684-5270 or send us a message here. We will take the guesswork out of shopping for your Connecticut life insurance policy and find what will best fit your needs.