3 Things to Know About Life Insurance
And now, for everyone’s favorite topic…life insurance! While it’s not the most exciting thing to think about, it is something you should know something about if you’re an adult with:
a) someone who depends on your income or labor (around the house, taking care of kids or elderly family members)
b) family members who would struggle to cover end-of-life expenses, such as a funeral or medical bills
In my own experience, my husband died without life insurance, and there was no savings to cover his funeral, nevermind to supplement my one income to help cover living expenses for me and my young daughter. So it’s personal for me! You never know what could happen, so it’s best to act now.
It’s not very expensive.
Life insurance can be as cheap as $15/month, which is a lot more affordable than many people think. All kinds of things can affect your rate, of course, like your age, health, and risky hobbies. But if the cost is what’s been holding you back, check out a calculator like the one on Mint to get a sense of what you’d be looking at.
It’s not one-size-fits-all
The most common type of life insurance (especially for young adults) is term life insurance, which just means the company promises to insure you for a specific number of years. However, there are lots of different options out there! It’s important to be clear about your goals (just cover final expenses? leave a legacy/inheritance? pay out monthly to replace your income?) and partner with a trustworthy life insurance agent/financial advisor.
It can make things a lot easier for your family
After someone dies, it’s an awful and overwhelming time. Unexpected expenses make it worse. If you have a joint credit card that’s carrying a balance, had someone co-sign a loan, or have other debt that someone else could be responsible for if you died, life insurance can be a godsend.
Even with the uncertainty of an ongoing pandemic, you can still get life insurance. You should probably—definitely—have life insurance. Need some recommendations for life insurance agents in North Carolina? Reach out!
Compass Coordinators is your problem-solving partner here to help you navigate in uncharted waters. We’re not attorneys, financial professionals, or mental health professionals, although we partner with these experts when needed. Everything on this website is intended for informational purposes only and should not be interpreted as financial or legal advice.
