Who Needs Life Insurance

Life is a series of consecutive phases: from childhood to adolescence to adulthood, we experience different things during each phase. As you move through these phases, you will find that your priorities tend to change and you need different tools to help you plan that part of your life more easily.

One such tool is life insurance, and to illustrate the way life insurance can play a role, we have drawn up a few life phase scenarios for you:

Young and single

The younger and healthier you are, the lower your monthly premiums are bound to be. That’s why it’s a great idea to consider investing in life insurance when you’re still young, especially if you’re planning on getting married and having a family one day.

There is, however, a common misconception that just because you’re young and single, with no responsibilities, you won’t need life insurance. But consider the fact that anything in your life could change within a moment’s notice.

Have you purchased a property? Do you have outstanding debt? Do you have a parent or a grandparent that you are helping to support? If you are responsible for financially supporting any individual, who without your help could not manage on their own, then life insurance is a good idea.

Another reason to invest when you’re single is to ensure that your funeral and burial costs are covered in the event of your untimely death. The last thing you want to do is leave your loved ones with the burden of paying for an expensive funeral while dealing with their loss. 

Married with or without children

It seems obvious when we say it, but some people forget about life insurance when they get married or a new baby comes along. If you have a spouse and children that rely on you financially, it’s important to make the necessary preparations so that if you’re one day no longer around to provide for them, they will be taken care of.

You should always ensure the amount of coverage you have is proportional to the size of your family, so that when you’re gone, there will be adequate funds not only to replace your income, but also to continue to give your family the opportunities you’d want them to have had if you were there. Having a life insurance policy means taking a large part of the financial burden off of your spouse’s shoulders as well as being able to leave a legacy for your children for their education or daily needs.
Single parent

Being a single parent makes it even more important for you to consider life insurance. In most cases, as a single parent, you would be the primary care-giver and provider for your children. This means you would seriously need to plan for and prepare for what will happen to them in the event of your death.

Life is unpredictable and it’s impossible to know what the future holds, and if you are all that your kids have, then taking out a life insurance product can help make a very difficult situation just a little easier. A life insurance payout can ensure that they’re well taken care of and are given a fair chance at a good life.

Empty-nester

Just because your children are all grown up and moved out, doesn’t have to mean that you no longer need a life insurance policy. Later on in life, your financial responsibilities change as fewer family members are dependent on you, but there may be other things still to consider. Are you still paying off the mortgage on your house or having to cover other living expenses?

If you’re the breadwinner, then your spouse will still be reliant on you for financial security. All these factors should be considered when it comes to making the decision whether or not to continue investing in life insurance.

Life insurance may be able to provide those much needed extra funds, over and above those that come from investments and retirement, which will help your spouse and family, should you pass on too soon. Particularly if there are unexpected medical costs involved in your passing.

Deciding whether or not to invest in life insurance should not be about how old you are, but more about the circumstances you are in. There are indeed certain phases in life when a person needs it more, but at the end of the day, making the decision is yours and it should be made based on your own personal situation and responsibilities.

PLEASE NOTE: In order to apply for Life Insurance cover from FRANK.NET, you need to be a South African citizen between 18 and 64 years of age.

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