Life insurance is one of those necessary evils in life that is becoming increasingly more important but often goes without being discussed. After all, it’s a touchy subject revolving around facing our own mortality. The avoidance of life insurance is much like that of a living will, we think if we don’t discuss it or plan for it, then it simply will not come to be. Unfortunately, life insurance is one of those things that once you need it then it has become too late to do anything about it, and you don’t get a second chance to do things differently the next time. With parents supporting their adult children to later in life it is readily apparent that the loss of the sole breadwinner in the family can be both emotionally and financially devastating. Not only does the breadwinner need to be insured, but the stay-at-home parent (if applicable) should be insured as well. If you have small children then you need to consider who will care for them if you suddenly become the single parent who needs to hold down a job to support them. The questions and concerns should not be about whether or not to have life insurance, but rather, the type and amount of coverage necessary. Then comes the hard part, how to afford the needed coverage and the specific nuances you should be aware of that come along with the territory.
Are your a smoker? While there is certainly a negative social stigma that comes along with smoking these days, we can see the impacts in other areas as well. Yea we all know that buying a pack-a-day can cost us upwards of $10 a pack, but did you also know it can cause your insurance premiums to skyrocket? That is if you can even get insured at all! Quitting smoking will allow you to not only live longer, but it will also help you to prosper in more ways than one. Are you a marijuana user? It wasn’t long ago that life insurance as a cannibis user was out of the question. These days insurance companies are becoming increasingly progressive and often times will not consider them to be true “smokers”. It is widely accepted that cannibis provides health benefits that can actually prolong our lives rather than the perceived negative affects that we are all familiar with hearing about. The trick is to show your insurer why you use medicinal marijuana and how it is improving your overall health. It is used to treat and mitigate many chronic issues these days that insurers won’t bat an eye lash provided you have a reasonable and sound explanation.
Just like all other forms of insurance you need to avoid a lapse in coverage! The same holds true with home warranties, car insurance, and especially health insurance. The companies that insure you want to make sure you are continuously paying into your coverage and not only when you know there is something that is already awry. This is how they afford the expensive payouts to those that really need them. Often times even if you simply forget to make a payment they will use that as an excuse not to honor their predetermined obligation to you. Make sure you always carry coverage and always make your payments on time, the livelihood and financial well-being of your loved ones could very well depend on it.
As I explained earlier, the common issue with life insurance (other than not having any) is that people often underestimate the amount of insurance they need. Consider how many children you have and how long you would plan on supporting them if you were still around. This includes things like college tuition, down payment assistance on their first home, or perhaps a new car when they first obtain their drivers license. Whatever the case may be, plan ahead for the worst case scenario and then true up from there!