Life Insurance Needs Assessment: Top 5 Reasons You Need Life Insurance

Life Insurance

We are all guilty of procrastinating every now and then. Especially when it comes to the somewhat morbid topic of life insurance. We all know that our death is an inevitable fact. Something that makes it easier to think about and easier to handle is preparedness. Knowing that your family will be taken care of and that all of your affairs are in order financially can make the process that much easier. Losing a loved one is always a traumatic experience. Furthermore, having to immediately look at financial costs of the loss is heartbreaking. Many people think they can wait on getting a policy and that they won’t need it for a long time. If you are debating getting life insurance, this article will help you decide. We will guide you through a life insurance needs assessment.

#1: Are You the Breadwinner?

Step 1 of the life insurance needs assessment is knowing the value of preparation. It is a common misconception about financial planning is that you only have to worry if you make the majority of the money in your household. Certainly, if you are the main source of income to your family, an untimely death may be financially devastating to your family. However, if you are a key part of the family unit, such as a stay at home dad or mom, there is a financial burden linked to this as well. A single parent has to now look into child care, meal preparation, and child rearing services to help carry the family load. Make sure that both partners are looking into life insurance to offset an untimely loss.

2. How Owning a Home Affects Life Insurance Needs Assessment

Young people often think that they don’t need to worry about life insurance, because they don’t have kids or own a home. Indeed, owning a home will impact your life insurance need assessment. Still, even without it, early preparedness is always the best policy in my book. If you are thinking about your future and envision owning a home and having a family, then it is never too early to plan for life insurance. Take a look at your options and see what makes sense for your future. If you currently have a mortgage, then the time is now. There is nothing scarier than a family losing their home after losing a loved one.

3. Do You Have Aging Parents or Children? 

Next, having dependents is a huge part of the life insurance needs assessment. Typically, young people think of children as the only dependent they could potentially have. However, depending on the situation you are in dependents can be parents as well. I have seen people have to dip into their own savings to take care of their elderly parents and even sick family members that rely on them for support. Having a backup plan will make sure that your family, regardless of age, will be taken care of. If you have children, it is imperative that you look into a life insurance policy. Luckily, most employers offer coverage for life insurance as it is such a common necessity.

4. Does Owning a Business Impact Life Insurance Needs?

Millennials are infamous for redefining the “side hustle” and what it means to be a business owner. It is now easier than ever to have a full time career and own a small business on the side. Websites like “etsy”, “squarespace” and “wix” have made it increasingly more accessible and convenient to own a profitable business at a younger age. If you own a business like this or even have your main source of income as a self owned operation it is time to purchase a life insurance policy. You should have full control of your company and say in the future of your operation. Life insurance can guarantee your wants and requirements of the profits and function of the business upon your passing.

5. Life Insurance Needs Assessment: Age and Health

I like to think of life insurance in the same way as retirement preparation. Experts recommend preparing for your financial future as soon as possible and making sure that you have financially secured your future. In the same way life insurance makes sure that you are prepared for whatever the future may hold. Make this commitment to yourself and your loved ones before it is too late. A lot of people make the mistake of trying to buy life insurance when they are terminally ill or older in age. Do not make that mistake, be prepared for anything. 

Auto Listings
Motorcycle Listings
Life Listings
Health Listings
Home Listings
Small Business Listings

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Small Business 101: Starting a Business in California

May 13, 2019

As the saying goes, there is no reward without risk. There is always risk when starting a business. A lot of this risk comes from uncontrollable circumstances like an economic…

Read More

Can You Be Denied Coverage? Pre-Existing Conditions 101

May 6, 2019

A pre-existing condition is a medical condition that someone has before securing health insurance coverage. These are previously diagnosed conditions that are part of the individual’s medical history. Some examples…

Read More

First Time Car Purchase: A Millennial’s Guide to Negotiation

April 29, 2019

The art of negotiation has been studied for centuries. People want to know how to walk away from every situation as a winner. A negotiation means that each party leaves…

Read More

How to Make Your Small Business a Success

April 21, 2019

When starting a small business there are so many things to consider. The top concern is how you are going to make your company stand out from the crowd. The…

Read More

Gap Insurance

February 23, 2019

Car Insurance is Complicated Gap insurance: it seems like there’s always something about insurance that we don’t know. There are so many different types of policies and details. Which one…

Read More

Things to Pay Attention to When Buying an Older Home

February 10, 2019

Buying a home is one of the most stressful processes a person can go through. To start, you have to find a home in the right price range with the…

Read More

Why you Should Shop Regularly for Insurance

February 10, 2019

By human nature we love to have the latest and greatest. From technology to fashion we are always looking for something new. We love having something new and even better,…

Read More

How to File a Claim

February 10, 2019

It’s a rainy Monday morning and the traffic is heavier than usual. At this rate, you’re going to be late, all the good parking spots will be taken. Plus, forget…

Read More