When to Start Thinking about Life Insurance

Who needs life insurance and why? It’s an expense for anyone that has to come right out of their budget. However, what you should understand is that insurance is really a bucket of cash. Therefore, you should start thinking about life insurance as soon as you begin to get yourself set up in life. 

It’s true that cash is not generated until the insured person dies. However, upon that person’s death, a whole series of cash needs may occur. It may be necessary to pay off their debts. That’s actually the easy part. Here are some of the other expenses that may need to be covered. 

  • Life insurance is a replacement of the insured person’s income that their family was dependent upon. 
  • Cash can be needed possibly to replenish expenses that needed to be paid, such as expenses for parts of an unexpected hospital bill that were not covered by health insurance. 
  • Cash may be needed if the family needs to modify the home or business. 
  • It can also provide additional services for dependents.

Single? No Children? Life Insurance is Still Needed

For a single person that typically has no children and perhaps no debt, so why do they need life insurance? Because upon that person’s death, someone’s got to come clean up their estate. Perhaps some credit card bills or a car need to be paid. Essentially, cash is needed at that time. 

Cash is a very important part of life and life insurance is a very effective vehicle to provide it. I would suggest that, typically, a person should generally start with a term life insurance policy, but you would want to take care of that as quickly as you can. 

And then through the years, life insurance stays important. Talk with me about how you might need cash when you’re in your senior years, maybe to offset a retirement plan benefit. 

As you can see, there’s various purposes of life insurance at different times. If you would like to have discussions on that, call us at (314) 544-5400 or fill out the form on our contact page to get in touch. 

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