Life insurance is one of those things on a list of stuff people don’t want to talk about. Nobody really wants to think about the fact that they might not be around, and conversations about finances can sometimes be stressful. When one has financial dependents (spouses and/or children), life insurance is often a must. Yet, according to LIMRA, there are 60 million households in the U.S. that don’t have enough life insurance, or any coverage at all.
Who needs life insurance?
Life insurance becomes a need when you go from taking care of yourself to taking care of morethan yourself. Typically, this happens when you get married, have a child or children or if you have co-signed debts like a mortgage, co-signed student loans or medical expenses and not enough assets to cover them. And the one that surprises people the most, is if you are a stay-at-home mom or dad. Yes, stay-at- home parents need life insurance. Often, it’s not considered because there isn’t income to replace. But, when you consider the cost of childcare, house care, and any other services that might need to be procured, there is definitely an income equivalent.
Also you need to think about if there is enough savings to cover a burial and end of life expenses. Funerals, burials, cremations, etc. are all pretty expensive, so if there isn’t money setaside for that, you’ll want to add that to your life insurance needs.
If you have loved ones and want to leave a financial legacy to them, you want to have lifeinsurance.
Why you shouldn’t put it off or wait
Should you become sick or ill, obtaining life insurance will either be incredibly costly or not even an option. You want to have it while you are healthy and well. You also don’t want to have to worry about what will happen while you are fighting an illness. You want to be able to focus on getting better for your family.
Do these excuses for not thinking about life insurance sound familiar?
Now, you likely know you need life insurance, but you’ve got about 500 (more or less) excuses to get yourself out of getting more information. The issue is that it’s often easier to not think about it, or come up with excuses. After all, you won’t be around to see the ramifications of not having life insurance. Do any of these sound familiar?
- too expensive
- not sure of the type to get
- not sure of how much coverage is needed
- not sure the length of coverage required
- the process is confusing and long
Admittedly, these were all of the issues and questions I had before committing to getting a life insurance policy. With four kids, if something does happen to me, my husband will have to figure out child care at the very least. It certainly is intimidating, awkward and scary, but there are places for getting life insurance that will help answer those questions for you and ease you into your policy.
How much does it cost?
Of course, the cost of life insurance will depend on a number of things; age, length of policy, sex, health history, and more – but it’s much more affordable than people think. A healthy 35- year-old woman can purchase a 20-year, $500,000 Haven Term policy, issued by MassMutual, starting at about $18 per month.
What type of life insurance is needed?
Many financial professionals will recommend level term life insurance because it’s a simple, affordable option for coverage. You pay the same amount each month, or annually, for a set period of time (10-30 years). If you pass away during your coverage term, the policy amount (called a death benefit) goes to your designated beneficiary.
How much coverage is needed?
For a person drawing a salary, it’s recommended that your policy be the equivalent of 5-10 times that annual salary. The sponsors of this post, Haven Life Insurance Agency (Haven Life) has an insurance needs calculator that can help you easily determine your needs.
However, if you don’t make a salary, it’s not as clear cut. You’ll need to figure out how much childcare, house cleaning and any other services your family would require, and use that as your salary baseline. You may also want to add future needs of your children you wish to provide, like money for college, weddings, or money for a down payment on a first home.
What length of coverage/term is recommended?
Your coverage should consider how old your children are and how long it will be until they are no longer in your care. It should also consider your age, any debts and college schooling your children will need.
How can Haven Life help make it easier?
The most daunting part of getting life insurance, for me, was just starting the process because I assumed it would be time-consuming.
Haven Life has made buying dependable life insurance actually simple through a straightforward experience that enables you to apply online and, if approved, receive an immediate decision on eligibility. No unwanted phone call or faxes. If approved, you can start your coverage today. Best of all: The Haven Term policy is issued by Haven Life’s parent company MassMutual — a leading life insurer that’s been around for more than 160 years.
If you don’t have life insurance, give Haven Life a try. You can easily get an estimate for coverage. And, if you like what you see, filling out their online form is quick and painless. There are very few cases where an adult shouldn’t have life insurance, so use this as the push to start the process.
Haven Term is a Term Life Insurance Policy (ICC15DTC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111 and offered exclusively through Haven Life Insurance Agency, LLC. Not all riders are available in all states. Our Agency license number in California is 0K71922 and in Arkansas, 100139527.