but now may be the best time
None of us like to ruminate about mortality, but the consequence of not planning ahead can mean hardship for survivors. Now may be the best time to evaluate how you’ll take care of your family if you’re gone.
As personal injury attorneys, every day we see how tragic events can permanently alter the lives of loved ones. Often this is indecently punctuated by financial hardship. Even in a case of ‘wrongful death’, when a death is due to another person’s negligence, it can take a while for victim’s loved ones to receive compensation through the legal process, and only if a defendant has insurance or assets. It can be a stressful time, because there are many immediate and short term expenses that will be due. This is why it is essential to have adequate life insurance coverage.
Top 4 immediate expenses that life insurance can be used for:
- Funeral expenses
- Mortgage protection
- Income replacement
- Providing for dependents
When should you buy life insurance?
Life insurance is very rarely on the mind of young adults when the concept is yet abstract and budgets are restrictive. However the older you are, the more expensive it is to buy. Most people buy their first policy between the ages of 30-40, after which it can become costly.
How much do you need?
This depends on what you need to cover. Term life insurance policies typically cover terms of 10-30 years and the younger you are when you purchase, the better price you will effectively lock-in for the length of the term.
You’ll want to think about how much you earn, your age, what you have available to cover debts and expenses, the future needs of your family, and funeral expenses, which typically range from $7,000 – $10,000. Without cash or life insurance coverage, funeral and burial options can be very limited.
Where should you get it?
Many employers offer life insurance as a benefit, but be aware that if your employment status changes, so will your coverage. Virginia residents can find life insurance at local insurance companies such as Genworth in Richmond, VA or The Winchester Group in Winchester. You may also choose to invest through a well-known company like New York Life, which has local agents available throughout the Commonwealth.
It’s never easy to think about end of life planning, but putting a good financial plan in place can create peace of mind, and make a qualitative difference for your loved ones.