Confused about life insurance? Think of it as “insurance on your life, which activates upon your death.” Not everyone needs it.
However—if any of these 3 situations fit you—consider life insurance. Not sure where to start? Gathering information helps you shop smarter. Here are few things to know …
1) Do people depend on you for roof and bread?
Should you die, life insurance pays cash to keep your family in a home, food on the table, vehicles in the garage, and education plans on track. What’s more, it brings immediate financial relief, so a family tragedy won’t become a catastrophe.
What's Changed: More Americans are helping support elderly parents or disabled siblings. If that’s you, check into life insurance even if you don’t have kids.
2) Are you a caregiver?
Many independent workers have caregiving roles. Would your family be able to hire a replacement for you? Childcare per child may account for nearly 20% of a family’s annual income. Median cost of in-home senior care is $30 an hour. The financial impact of not having you may be significant, even if your annual salary isn’t.
Tip: Estimating life insurance needs for caregiving can be complicated. Several online calculators may give you a good start.
3) Do you have $10,000 in cash on hand?
Dying brings bills—always funeral expenses (the median cost is $8,300), sometimes medical ones. Who is going to cover your final expenses? If you have little cash on hand, even small life insurance policies can help soften financial stress for those around you.
Tip: If you have health conditions, lower benefit policies may be available to you without health questions. Be aware that coverage may be limited in early years.
You’ll discover…
NOTE: Small differences add up. Saving $10 a month in premiums over 10 years is worth an extra $1,200 in savings—and that’s before interest!
The easiest way to find the life insurance you need is with Mercer Indigo. You can get personal assistance with a click or call if you have any questions. And, you can compare rates of leading insurers head-to-head.