Purchasing life insurance can be a daunting proposition – besides the obvious reminder of your own mortality, the cost involved, and features and options to choose from, can be overwhelming.
But once you make your initial life insurance purchase, your job as an insurance consumer isn’t done. There are many factors in your life that influence how much coverage you should have – and these factors change as your lifestyle changes, too.
Below is a list of life stages. Compare where you are – and where you’re going – with the needs detailed with each stage. If you haven’t considered if your insurance meets your needs lately, this may serve as a helpful reminder of the expenses your loved ones will use your life insurance benefit for.
Single without children – You may need life insurance to help pay off any outstanding debt you may have, such as credit cards, student loans, or car loans, as well as money to pay for your funeral costs.
Married with dependent children – If you died, your spouse would likely need financial help not only to settle your affairs, but also may need an amount equal to several years’ worth of your income to replace the money you previously brought into the household. That may seem like a large sum of money, but your family will use it to pay off your mortgage; create college funds for your children; pay for child care, now that your spouse is the sole caretaker; and even pay for day-to-day items like groceries, household bills, and car repairs.
Divorced or remarried – Some divorce settlements require that a specific amount of life insurance coverage be maintained for a former spouse. That amount could be higher if dependent children are involved. Should you remarry, you should also consider an insurance amount that would meet your current spouse’s needs, as well. The amount of coverage increases if you had children from your first marriage as well as from a second marriage.
Married and retired with no dependent children – Some people feel their insurance needs decline as they age, but in many cases an insurance benefit can serve as a way to preserve your estate. You may want to consider providing retirement security to your spouse with a new or increased life insurance coverage amount. With the right planning, your spouse may use your life insurance benefit to live comfortably in retirement as you always planned.
Life insurance can be a way to help protect the important people in your life – no matter what stage you’re in. Make sure you and your loved ones are protected. Not sure how much life insurance is right for your life? The AICPA Life Insurance Needs calculator is a quick and easy way to find out.
Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (TX 13695) (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc. (CA 0G94493), Aon Direct Insurance Administrators, and Berkely Insurance Agency; and in NY, AIS Affinity Insurance Agency.
Group Insurance coverage is issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ. The Booklet-Certificate contains all details, including any policy exclusions, limitations, and restrictions, which may apply. Contract Series: 83500. CA COA# 1179, NAIC 68241.