No matter your age or stage of life, you may have asked yourself at some point: “Do I need life insurance?” The topic of life insurance can be confusing, with several different types available. And sometimes it’s difficult to know how much coverage you need.
It might help to understand the two main types of life insurance. Term life insurance provides coverage for a specified period of time — usually between 5 and 30 years. Permanent life insurance lasts as long as you’re living, as long as you continue paying the premiums.
While it’s generally a good idea for everyone to have life insurance, there are some situations in life where it’s even more important. Explore the profiles below, and find where you fit in.
Even a Single With No Dependents Needs Life Insurance?
If you’re young and single with no dependents, you might think you are one of the only people who can technically get away without life insurance. If no one else is depending on your income, you don’t need to plan for anyone else’s financial future… right? One exception, though, could be if your parents would need help covering your end-of-life expenses or outstanding debts, like school loans or credit card payments. In this case, having a life insurance policy could go a long way. Even if this doesn’t apply to you, purchasing life insurance when you are single with no dependents is still a smart and forward-thinking decision. The price of life insurance increases as you age, so there’s never a better time to buy than when you’re the youngest and healthiest.
Just Got Married
When the wedding bells ring, it’s time to get serious about purchasing a life insurance policy. You’re now sharing your financial life with someone else. “What’s yours is mine,” applies to more than just the high-tech coffee maker. It also applies to debt. Whether that’s from credit cards or student loans.
And after saying, “I do,” it’s likely that more big financial decisions are on the horizon. Remember, the best time to buy life insurance is when you’re young. You can expect lower premiums from the insurance companies, so lock in your low price when you can. Buying life insurance when you get married is the perfect way to start your financial safety net and plan for the long-term.
Buying a House
Taking on a home mortgage is a significant expense that depends on a stable income for years in the future. When a family breadwinner passes, it can create a financial burden for those left behind. They may not be able to continue making mortgage payments, causing an unfortunate situation of loss to become even worse.
While mortgage insurance is one option for protecting against this outcome, a term life insurance policy is generally the better choice for the following reasons:
You can choose your benefit amount
Your beneficiary is in control
Your policy can extend beyond your mortgage term
They generally cost less
Starting a Family
First comes love, then comes marriage. You know the rest: a baby. And maybe more than one, right? Then — if you haven’t done it already — comes the wise decision to purchase a life insurance policy.
Buying life insurance when you become a parent is one of the best things you can do to protect your family for years in the future. A 20- or 30-year term life policy might be exactly what is needed to ensure your spouse has financial support and your children are cared for up until adulthood. Death benefits from a life insurance policy can do more than just keep everyone fed. They can also contribute to ongoing household expenses, and even assist in paying college tuition.
According to a Pew Research study, 18% of U.S. parents stay at home. If that’s you or your spouse, don’t discount the importance of having a life insurance policy. While stay-at-home parents may not be “breadwinners,” they are providers for the family. A sudden loss could have a financial impact in a different way. Such as needing to find daycare or childcare services.
Even if you already have a life insurance policy, milestones such as the birth of a child are a great time to re-evaluate your life insurance coverage.
Business Owners Need Life Insurance
If you’re a business owner, your family isn’t the only one depending on you. Your business partners and employees are also relying on you to manage the company and provide them with an income. But just like buying a home and taking out a mortgage, your family may not be equipped to take over your business expenses if you die.
They may be unable to sell it. And if loans were involved, they would bear the burden of paying off those loans. In the worst-case scenario, personal assets could be repossessed, or the company could fold altogether. Not only would your family be impacted, but all of your employees as well.
Having a life insurance policy, or multiple policies, can do a lot of good in protecting your family’s future. This would give them the ability to pay off any business debt, as well as the time to decide how to best move forward with the company.
If you haven’t bought life insurance by the time you retire, the timing may not be ideal as the price increases with age.
But at this age, if you’ve planned your finances carefully, retirement income should provide everything a surviving spouse needs. Your mortgage may be fully paid off. Your children will be grown and able to support themselves. In this case, you may not need life insurance.
Still, life insurance could make sense even after achieving the retirement milestone.
Who Needs Life Insurance? You Do.
Through almost every stage in life, life insurance is a worthwhile investment. But remember, it’s always cheaper to buy it when you’re younger.
No matter the milestone, Paschall Insurance Group is here to help you find the right policy that meets your family’s needs. For now. And for the future.
The waiving deductible practices of some contractors has been a widespread issue throughout Texas and other states. Policyholders are duped into fraudulent insurance claims with promise of “rebates, deductible waivers, and credits” for their business. Most commonly done in the roofing industry, shady “deductible eaters” (contractors who have been knowingly breaking the law) are cannibalizing reputable contractors with promises of a “free” roof. Their practices are illegal but ignored due to an improperly worded doctrine developed in 1986 in attempt to stop fraudulent practices.
The revised House Bill 2102 signed last month by Governor Abbott is designed to combat the devastating effects of roofing fraud. It clearly states that contractors are violating the law if they pay, rebate, credit, or decline to charge or collect a deductible. Insurance companies may ask for reasonable proof of payment which are: canceled check, money order receipt, credit card statement or an executed installment plan. If there is not a proof of payment for the deductible, the insurance company can then refuse to pay the replacement cost hold-back. The new law also imposes a Class B misdemeanor offense of 180 days in county jail and a fine of up to $2,000 for both the violating contractor and/or the policyholder.
This important legislation will both protect Texas consumers from illegal fraud schemes and ensure that reputable contractors are on an even level playing field in competitive business.
Umbrella insurance provides extra liability coverage that can help protect assets, such as your home, car and boat. It also helps cover defense costs, attorney fees and other charges associated with lawsuits.
What Does Umbrella Insurance Cover?
Whether it's a serious car accident involving pricey medical bills or an incident on your property, you can quickly find yourself responsible for damages that exceed the limits on your auto, homeowners or boat policies.
An Umbrella Insurance Can Provide:
An extra $1 million to $10 million of liability coverage, which can help protect assets such as your home, car and boat.
Coverage for claims like libel, slander, defamation of character and invasion of privacy.
It also helps cover defense costs, attorney fees and other charges associated with lawsuits.
This coverage also extends to international occurrences.
An umbrella policy is a valuable addition to any auto, homeowners or other policy for extended personal liability protection.
In today's world, anyone can get hit with a lawsuit. That's why it's more important than ever to consider an added layer of protection for your assets – and your peace of mind.
From our offices in Weatherford, Texas, we serve clients anywhere in the State of Texas, though the following areas are geographically closest to us: the counties of Dallas, Tarrant, Denton, Wise, Johnson, Parker and Hood and the cities of Arlington, Bedford, Brock, Burleson, Cleburne, Colleyville, Coppell, Dallas, Decatur, Euless, Fort Worth, Frisco, Granbury, Grapevine, Hurst, Keller, Mansfield, Millsap, Mineral Wells, North Richland Hills, Southlake, Watauga, Weatherford, and White Settlement.