Life insurance represents one of the most important types of insurance available.Â However, many forget about life insurance â€“ in some shape, way, or form.Â Follow along as we tackle this vital conversation and see how it may impact your financial situation.
Do You Have It?
According to an article from USA Today, 30% of households have no individual or employee-provided life insurance.Â It is quite staggering to consider.
Imagine what might occur, if you were to ignore purchasing some type of life insurance.Â Â Sure, you could beat the odds â€“ you just have to stay alive.Â Unfortunately, death can come rather unexpectedly, which could mean very bad things for your family.
Neglecting life insurance can put an unimaginable amount of stress on your family if something were to happen to you.Â In many households, losing someone unexpectedly could easily undermine the family’s finances.Â It could ruin that of saving for college tuition, certain goals for your children, and even drive your family to selling the home, bankruptcy, and so forth.
Those who don’t need a lot of life insurance still must recognize funeral costs and debts that would be left behind.Â You aren’t exempt from the value of life insurance if you are single or have minimal expenses that will be passed on.
Neglecting Your Policy
Perhaps you haven’t fully forgotten about life insurance.Â After all, as the previous article describes, a 35-year-old man can purchase a $500,000, 20-year term policy for about the cost of a Netflix subscription.
However, there is another mistake that can weave forgetfulness with life insurance â€“ this is found in forgetting about your policy.Â It seems reasonable to believe that the life insurance policy you purchased needs no further consideration.Â Yet that isn’t necessarily the case.Â Perhaps some of the following examples are true:
- Your Needs Change: This is the big one.Â You could easily need more or less coverage as time passes.Â Perhaps the children are now on their own, or you and your spouse are paying off the home.Â Whatever the case may be, that â€œmagic numberâ€ will change.Â Keep your life insurance policy in mind along with it.
- Term Policies Expire: Here’s one where you literally can’t â€œset and forget it.â€Â You’ll have to recognize that the term life insurance policy will need to be followed up with something â€“ be it another one, a different type of policy, or a very good plan.
- Others: You might need to borrow against your policy, or consider switching policies for a number of possible reasons.Â Along with the first reason, perhaps you want to get a second policy.Â You also might need to consider your business with life insurance products.
From more coverage to synchronizing your life insurance policy for the well-being of your business, there are plenty of situations in which losing sight of the policy is not a good idea.Â You should always be on top of your situation and life insurance policyâ€¦
Along with your retirement plan and other products, life insurance is certainly one important item for you and your family.Â Seriously consider life insurance if you haven’t already purchased a policy.Â If you have done so, don’t lose sight of it and your finances.