When is it time to get life insurance?

When is it time to get life insurance? Bruce Lee famously said the essence of fighting is the art of moving at the right time.

When you think about it, we’re all ‘fighting’ to protect the ones we love, but we need to make sure we react at the right time.

Life insurance is one form of protection in particular that can help your family in times of need, but the big question is: do you need life cover and if so, when should you get it?

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Do I need life insurance?

Simply put, if you have people who depend on you financially, then you likely need life insurance. This includes spouses, children, or other family members who rely on your income to cover expenses such as mortgage payments, bills, and daily living costs.

That’s not to say you definitely need life insurance, you could have plenty of savings or assets that your loved ones could use to maintain their lifestyle if you were indeed to pass away. But for many people, having cover provides them with peace of mind knowing that their loved ones will be taken care of if anything happens to them.

So when exactly would it be beneficial to get covered? Here are just some of the many situations where it makes sense to get life insurance.

When you’re getting married

There’s no better sight than when two people in love tie the knot and start a new life together. But with marriage comes shared responsibilities, especially financial ones. If you or your spouse were to pass away, the surviving partner may struggle to cover debts, mortgage payments, and other expenses on their own.

It also sets you up for other milestones like having children – which we’ll talk more about later – and buying a house.

For couples, joint life insurance is a popular choice for cover, where instead of taking out 1-2 single policies, both partners are covered under one. It’s usually bought as a first death policy – where the policy pays out after the first death in the couple, or as a second death policy which pays out after both partners have died.

Not only can this be cost-effective, but it’s less paperwork to manage, essentially providing a simplified solution for newlyweds.

When you’re having kids

Ask most parents, and they’ll say the birth of their children was one of the best days of their lives. Cliché as it sounds, it truly is a wonderful time. But having kids is also a major life event that changes everything – including your financial obligations.

All of a sudden you have another person to care and provide for. What it also means is that your death is even more significant now, as your children could be left without support. It also puts pressure on your spouse/partner to cover all the expenses on their own.

If you’re thinking of having children or have a little one on the way, you should really consider getting life insurance. Even if you’re a younger parent, getting cover now can help you lock in lower premiums and provide peace of mind for your growing family.

When you’re buying a home

It’s been said that ‘home is where the heart is’ and for many people that is certainly the case. After all, it’s not just bricks and mortar, it’s our own space to build memories and start a family. It goes without saying, buying a home is not an easy doing. It can take years, if not decades of saving and planning to afford a house of your own.

But what many people don’t consider is what would happen if they were to pass away before the mortgage was paid off. Would your family be able to keep up with the payments on their own? Could they afford to stay in the house, or would they need to sell it?

And while we think of life insurance as protecting a life, it can also be used to cover a mortgage. If you do in fact die before the mortgage is repaid, and own life insurance, then your spouse can use the money towards future payments or to pay off the mortgage in full. This way, they aren’t faced with the burden of losing their home on top of losing you.

When you’re starting a business

If you own your own business, you know full well the amount of dedication that goes into making your dream a reality. And if it’s a family business, you want to make sure that your hard work is protected in case something were to happen to you.

Your death could have a huge impact on the day-to-day operations of the business, especially if you are a key player in its success. This could leave your family struggling to keep the business afloat, or worse, having to sell it off.

If you’re insured, you can make sure the money goes towards keeping the business alive, paying off any outstanding debts, or even providing a payout to your family if they choose to sell the business. Either way, it’s certainly reassuring to know that plans are in place should the worst happen.

When you’re planning for retirement

After all those years of hard work, it’s time to relax, enjoy your golden years and spend time with your loved ones. There’s still so much to see and do, and you want to make sure that your retirement is everything you’ve dreamed of. But what happens if you were to pass away before you reach retirement age?

If you have a partner who relies on your income for their own retirement plans, they could be left struggling financially. And while they may still receive a pension or other benefits, it may not be enough to cover all their expenses.

Most insurance companies offer over 50s life insurance, specifically intended for people over 50 who may struggle to get a standard life insurance policy because of their age or health. This cover usually has ‘guaranteed acceptance’ meaning the insurer has to accept you for cover, regardless of your health or medical history.

Over 50s cover can also include added benefits, such as cover for funeral costs, which could otherwise be left for your family to pay.

But it’s not just these events that create a need for life insurance, there are other events such as if you have children with special needs, for example, who may require ongoing care and support. Or if you’ve just got a new job with a higher income. Whatever the situation, you need to make sure you buy cover at the right time before it’s too late.