Learn how life insurance can be an important ally in your financial security and those you love the most.
It may seem like a distant concept - putting money into something that may or may not happen in the future, when you and your family have fixed financial needs now. But your spouse, child or even an elderly parent are likely to depend on your income at work. So, what would happen if you were not around anymore? This is where the importance of life insurance comes in.
You may be wondering, how much life insurance do I really need? And what is the ideal insurance for my family and me? As you think more about life insurance and how it can be an important ally in protecting your greatest asset, here are three features you need to know:
1. A life insurance can guarantee your income even if you stop earning it.
Life insurance specialists recommend that you begin calculating how much coverage you need in a very simple way: multiply your annual salary by the time you have determined to achieve your primary life goals. This period can be 5, 7 or 10 years, for example. This is an estimated period to ensure total financial peace of the family if your main provider is missing.
2. The best time for you to take out insurance is while you are young.
Your insurability (your ability to qualify for coverage) is generally better when you're younger and healthier. This means lower premium payments and a longer period to accumulate a larger death benefit for your beneficiaries.
3. It is not just for parents or couples.
There is a common misconception that life insurance is only for those who are married, plan to have children or already have children. Life insurance is also very valuable for anyone who is single.
Think about it. If something happened to you, who would pay off possible debts and funding that you might have? Or the funeral costs? With life insurance, your family - father, mother or siblings - will be protected from financial difficulties should anything happen to you.
While it is not fun to think about the reasons that lead to hiring life insurance, it is incredibly important for you and your loved ones to reflect on the future. Make sure you actually take time and think about whether life insurance makes sense to you and those you love. And we understand that this assessment can be difficult. Learn more about our Financial Protection Advisory and how we can help you protect what matters to you. Our experienced advisors can help you understand your options, determine the right coverage amount, and choose the best type of policy – whether it's term life insurance or permanent life insurance – to meet your unique needs.