Follow our tips to make sure you’re insured for the major events in your life.

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Planning for your financial future is always important. You never know what could be coming around the corner—especially if you are married, have children, or you are starting a new business. A big part of making sure you are prepared for whatever the future may bring is purchasing a life insurance policy. Purchasing life insurance is something that many people neglect until it is absolutely necessary. However, it is actually beneficial to purchase life insurance as soon as possible!

If you purchase a life insurance policy while you’re young and healthy you will get the best possible price on life insurance. Plus, after you get life insurance, you can gain peace of mind that your family is financially protected. 

The problem for a lot of people is that they aren’t sure when they need to start looking for life insurance policies. That’s why today we’re going to be talking about the top 6 signs you need to purchase life insurance. Let’s get started!

1. Economic Recession

No matter the state of the economy, a life insurance policy is always beneficial

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Your life insurance policy does not depend on the stock market.

It may seem counterintuitive to take out a life insurance policy during a recession, but it is actually a smart idea. A life insurance policy protects your family no matter what the future brings—and that includes the economy. If you’re young and healthy, you will be able to secure cheap life insurance coverage that will protect your loved ones and won’t be affected by the stock market. In times of economic volatility, getting a cheap life insurance plan is one of the smartest ways to invest your money. In a recession, any money invested in the stock market will be subject to change in value and can be highly unpredictable.

 As we just recently learned through a crash in the cryptocurrency market, you can never know when the next major market change will occur. While it is important to make smart investments, getting a cheap life insurance policy will guarantee you payout no matter what is happening with the economy.

For example, you can easily get a cheap term life insurance policy while you’re young and healthy. If you are in your 20s or 30s and are without any chronic health conditions, you can get a life insurance policy for as little as $15-$25 per month. Getting a cheap term life insurance policy will protect your loved ones for the duration of the term. For most people, this is the least expensive way to get life insurance while still getting the necessary coverage to prevent your family from financial struggles.

2. You Are Planning a Wedding

Getting married is a huge life event! Before you tie the knot, make sure you and your spouse are covered

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Gearing up for the big day? You might want to start exploring insurance policies.

Weddings are big investments!While you are choosing to dedicate your life to your spouse —in many cases—you’re also intertwining your finances. No matter the age you get married, you should consider taking out a life insurance policy. 

In the event of the unthinkable, you need to make sure that your spouse is covered. If you should pass away, your spouse and your family members will be tasked with covering funeral expenses. It is also very likely that your spouse will have to take some time off of work in order to grieve and make the necessary arrangements. In this case, a term life insurance policy comes in handy. The average term life insurance policy lasts anywhere from 20-40 years. This term will give you time to save money and set your own financial plans in place before the term expires. If you are planning a wedding, make getting an inexpensive term life insurance policy one of the items on your to do list.

3. Preparing for Your First Child

When you take out a life insurance policy, you are protecting your child no matter what the future brings

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Protect your growing family with a life insurance policy.

Getting ready to welcome your first child into the world is one of the clearest signs that you need life insurance. Should the unthinkable happen while your child is young and you are uninsured, the financial results could place unneeded stress on your family and your spouse. The best way to prevent this is by taking out a life insurance policy. 

In the event of your death, the insurance policy can help supplement your income, pay for childcare, and assist with funeral expenses. As we mentioned before, the best way to get life insurance on a budget is by seeking out a term life insurance policy. Your policy will cover your family while your child is very young and will expire by the time your child is out on their own. Your insurance policy can also be used to cover the cost of higher education. If you intend to send your child to college, it is important to factor the cost of higher education into your total coverage amount.

4. Starting Your Own Business

If you are an entrepreneur, you need to protect your loved ones with a life insurance policy

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Starting a business is a big financial risk.

Choosing to start your own business is another major life decision that will require a backup plan. In this case, your backup plan should be a cheap term life insurance policy. Starting a business requires finding investors, taking out loans, and more. While this is all necessary to get a business started, it can put you in a temporarily precarious financial situation.

During the time that you are starting your business, you need to make sure that your family is protected should you pass away. If you pass away while you’re starting a business or while your business is still new, all of your remaining debts will be transferred to your remaining family members. 

In order to prevent your family members from taking on your debt, you will need to take out a life insurance policy. In the case of building a business, you can take out a cheap term life insurance policy that covers the amount of time it will take you to get the business on its feet. For example, you can take out a 20 year term life insurance policy that will protect you until your entrepreneurial debts are paid off. 

5. Taking Care of Aging Parents

If your parents rely on your income, you need a life insurance policy

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The cost of assisted-living care is higher than ever.

As your parents age, there is a higher chance that they will depend on your income in the near future. The cost of hospital bills, assisted-living care, and other forms of elderly care can be extremely expensive. If you find that you are taking care of your parents as they age, it is a good idea to make sure they are protected. In the event of your death, your parents will be able to maintain their care thanks to the payout from the insurance policy. For many people, this peace of mind is more than worth the cost of a monthly insurance premium.

6. Becoming a Stay-at-Home Parent

Stay-at-home parents need coverage too!

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Childcare is a valuable asset for any parenting duo.

If you are a stay-at-home parent, it is easy to assume that you do not need life insurance. Life insurance is designed to replace income, right? Not exactly. Stay at home parents provide essential services that are unable to be easily or cheaply replaced. For example in the event of your passing, the breadwinning spouse will have to step in for childcare or hire a childcare service. Either way, this will majorly affect the financial stability of your family. In this case, life insurance is necessary to front the costs associated with childcare. So, when you are ready to purchase your policy as a stay-at-home parent, we recommend planning for at least 5-10 times the average cost of yearly childcare.

If you are going through any of these major life changes, then you should consider getting a life insurance policy. Often, life insurance policies are more affordable than you think and will give you and your family peace of mind. For most people—especially those who are young and healthy—the best time to get a life insurance policy is as soon as possible.

Kate Staples is a career coach from Canada. She specializes in personal development, leadership, and mentoring students, recent graduates, and career changers to create a new career path and define their work skills, values and preferences. She is a blogger, speaker, and long-distance runner.


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