There are various milestones you will experience in different stages of your life, and life insurance is one of the most overlooked factors that affect these significant changes.
Think about it, from marriage, having a new baby, your teen’s car, college fees, retirement – all these can make an impact on your insurance, though it may be the at the back-burner of your priorities during the special moments.
However, failing to keep up with the changes and adhering to your policies can lead to costly consequences. For that reason, we’re here to uncover a myriad of key life events and how it can trigger the need for life insurance.
Milestone #1: Marriage
Marriage involves combining your income, which means that your households, cars, and other property fall under one roof. It’s essential to update your insurance policies accordingly, as it will help ensure that both parties remain financially sound through the years.
For instance, in an unfortunate event wherein the primary breadwinner dies, life insurance will ensure that the remaining spouse who earns a lower salary will have enough monthly expenses to cover for food, shelter, and education for their children.
Milestone #2: Divorce
Divorce is another major life event that should prompt you to review your life insurance policy and ensure that it’s up-to-date. Many ex-spouses find themselves in a complicated situation as most still have their ex as their beneficiary.
Keep in mind that there are various states with laws that automatically revoke potential benefits once the divorce is final. When this happens, the court will decide to give proceeds to a second beneficiary.
However, if there is no one in the list, then property, belongings, and other funds will directly go into the estate of the deceased. Beyond that, divorce will also largely affect the children’s living arrangements, making it all the more crucial to have life insurance.
Milestone #3: Having or Adopting Children
Life insurance becomes a vital component once you think about securing your child’s future. While it isn’t the first thing a couple should decide on when growing a family, it should still be a priority as having kids comes with a brand new slew of financial obligations. Life insurance will help cover for additional expenses for taking care of a child, such as an allowance for daycare, for instance.
Milestone #4: Purchasing a Home Property
Large purchases like a house involve meticulous planning as it entails getting a loan or mortgage, which is a significant financial responsibility. You will have to incur estate taxes, which your family will have to pay off in case of your death. For that reason, having life insurance is essential as it protects your surviving family by helping them settle loans and other financial difficulties upon your death.
In Conclusion
Life insurance is designed to safeguard you and your family’s future from suffering further financial loss. The future is unpredictable, after all, so be sure to take action to ensure their financial well-being.
If you’re looking for life insurance in Las Vegas or Reno, get in touch with us today to see how we can help!
