Life insurance demystified.
Life can be full of unpredictable events that can suddenly change everything for you and your family. As personal injury lawyers, we are very aware of how one tragic event can permanently alter the lives of those you love. Even if someone dies due to another person’s negligence – a “wrongful death” case under Virginia law – it can be a long time before the victim’s loved ones are eligible to receive compensation. Unfortunately there are immediate expenses that will need to be covered and this is where 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 who usually feel a certain amount of invincibility and have very restrictive budgets. Unfortunately the older you get, the more expensive it is for you to buy. Most people buy into a life insurance plan between the ages of 30-40, after that it becomes more 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 buy into it, the better price you will get for the length of the term, so you need to think ahead. 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. Funeral expenses are generally due immediately, but there can often be a 30 day grace period to allow for life insurance distribution. Without 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 Valley Insurance in Winchester, VA. You may also choose to invest through a well known company like New York Life, which has local agents available throughout the Commonwealth.
It is 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 huge difference for your loved ones in the event that it is needed. Loss of a loved one is always difficult, but the grief will be compounded if financial stress becomes part of the equation.