Life Insurance 101 – Who should buy it?

Life Insurance Awareness Month #LIAM
Most agents will tell you: “If you are a live human being, you should get Life Insurance.” And I somewhat agree.

As explained in one of my previous posts, Life Insurance allows the insured to transfer the financial risk of a fatal event. It allows those left behind not only to handle your final expenses but also protects their lifestyle as they are no longer able to benefit from your income earning potential.

Life Insurance has a place in everyone’s life. The type, purpose, and amount will be expanded in future posts but as a basic rule of thumb, this chart attached to this post can help you visualize who are the best candidates to prioritize having Life Insurance.

Some advisors would argue this but I feel it is important to also mention that having a policy on your children is a wise option. Not only the cost of the policy is economical but you would be protecting that child’s insurability in the future. Buying it early allows the policy time to grow providing in many cases a nice nest egg to use in the future. I should also note that “accidental death” is among the top 5 reasons of fatalities for kids between the ages of 0 – 14.

Stay-at-home parents are usually undervalued and often choose not to purchase Life Insurance because they do not generate any income. However, it is important to note that the value of their contributions to the home has a price tag in excess of $100K per year! The cost of their absence can severely impact the livelihood of the family.

Who else do you think should buy Life Insurance? Why?

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