Just as there are many types of families, there are many types of life insurance policies. This can make it challenging for couples to decide what coverage is best to meet their family’s needs.
Do you know what coverage would be best for your situation? Here’s the breakdown for a few of the most common scenarios.
Growing families: Parents with small children often have the greatest need for life insurance. The children will not be capable of caring for themselves financially for many years.
If one partner passes away, he or she is leaving behind a big burden to shoulder alone. If both parents pass way, the children will be in definite need of funds to help cover their care.
Empty nesters: Older couples with grown children can also use life insurance. This is especially true if one spouse works and the other does not, or one earns significantly more than the other. In this case, life insurance should be purchased for the life of the higher-earning partner so the lower-earning partner does not face a bill he or she can’t pay at some point in the future.
DINKS and SINKS: Dual income no kids (DINKS) and single income no kids (SINKS) couples may also want to carry life insurance policies. The benefit can help the remaining spouse pay off a mortgage or cover other expenses that will be hard to pay without the help of the deceased.
Unconventional circumstances: These can create even greater challenges. Consider, for example, a couple who has lived together for a decade but never married. Perhaps the woman has significant assets, including the house the couple lives in. The man has fewer assets, but he has heavily contributed to renovations on the house.
If the woman plans to leave the home to her children from a previous marriage, a life insurance policy can provide funds to allow the man to purchase a different house on his own after her passing.
Wondering if one of these might be a good fit for your needs? Contact our office to discuss your situation and receive professional insight into the best insurance solutions for your unique needs.