Why Young Families Need More Life Insurance Than Others

Why Young Families Need More Life Insurance Than Others   Check out Life Insurance Pricing ! Click Here ! Life insurance is one of the most important financial products a couple with young children can secure. If only one spouse is the breadwinner and suddenly dies, the family could be left destitute quickly because of the loss of the paycheck. Even if both spouses are working and they have a mortgage that they both contribute to, it could ruin the family if one of them suffers an untimely death. There are many other reasons for young couples with kids to secure life insurance, such as: Couples typically accumulate assets during this period of time, and an unexpected death can really damage this phase. This is also the time when debts are highest (mortgage, student loans, etc.), and those debts need to be paid. Also, it's not cheap to raise kids. Securing a life insurance policy in your younger years means you'll pay lower premiums than if you buy a policy when you are older, as you are expected to be healthier and have a long life ahead of you. Life insurance options Level term life insurance - If you have a young family, you may want to consider a level term life insurance policy.  This is one of the simplest forms of life insurance: you just pick a length of time, a death benefit, and the premium is stays the same through the life of the policy.    A level term life insurance policy: Lets you pick a policy length, which you could set to expire when you retire, or the kids graduate from college. A standard length of time is 20 to 30 years. Lets you choose a death benefit that meets your needs. Is often relatively inexpensive. Permanent life insurance - You may also want to consider a permanent life insurance policy, which provides coverage during the entire lifetime of the individual. It can also have the benefit of accruing a cash value over time. But for the coverage to remain valid, premiums must be paid on time. There are benefits and drawbacks to each type of life insurance; it really depends on the specific needs of the family. Buying the right coverage amount You will also want to consider how much life insurance will cover the needs of remaining family members. Number of family members, debt, future debt and ability to afford the various life insurance premiums will all play a role in how much life insurance coverage is best. It can be beneficial to make an outline of what your present monetary obligations and needs are, and a prediction of what those needs and obligations will be in five, 10, 15 and 20-plus years down the road. By combining this information with your total household income, you can determine the best amount of life coverage. At the very least, you should make a list of recurring monetary obligations - mortgage, student loans, vehicle loans, credit card debts, etc. Don't forget future obligations, such as a child's college tuition, in your calculation so that you have the most accurate estimate on how much coverage you should purchase. Be prepared Financial solvency for young families can be ensured with a life insurance plan. However, even the best-laid plan can become dated as life changes. So, part of being prepared also includes periodically re-evaluating your life insurance coverage. Call us if you need help in deciding the type and amount of life insurance to take out, or in re-examining your coverage.

Contact Us I wish you all a happy new year! Remember to make your Insurance payments before January 1st, 2020! Michele & Matt Boland M & M Insurance Agency 11024 Montgomery Blvd NE Suite #261 Albuquerque, NM 87111 505-881-2638 info@mminsuranceagency.com