The Honest Talk About Life Insurance

By: William Forbes

If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance.
— Suze Orman

September is Life Insurance Awareness Month, and in my opinion it is an important topic. There are so many articles out there that give guidance on the best products and how you know if you need them. I'd like to cut through the confusion and noise by taking a firm stance in today's post. Simply put, if you have any dependents at all, you need life insurance. And, it's best to purchase a policy when you are younger to lock in a rate.

I'm speaking to readers of this blog who are between the ages of 30 and 50. During that age period, people usually have the most dependents - younger children, a spouse, a partner, etc. This is the sweet spot for life insurance, because this is the time your loved ones would be most affected by your death. It's not easy to think about, but children, spouses, and partners can be significantly affected by the costs and budgetary changes that come with losing a caregiver. Life insurance isn't about protecting yourself, it's about protecting your family. A good policy will help your family to maintain their lifestyle if you are no longer with them.

There are many things to discuss with your insurance agent when it comes to purchasing the right plan for your family. But, I suggest purchasing a policy as early as you can, and locking in a manageable rate on that policy. For example, a term policy is probably a good place to start if you've never looked at life products before. With a term policy you can set the time period for which you want coverage, usually 20 - 30 years, and these products are relatively inexpensive. A term policy will give you the comfort of knowing that your family is taken care of during the most crucial years - when children are youngest and your family is still likely paying off larger purchases, such as a house, car, or student loans.

Life insurance is truly an important purchase for the people you love. If you have any questions about life insurance, give us a call and talk it through with an agent.