The 4 Critical Times in Life That You Need Life Insurance The Most

February 15, 2022 8:30 am

Life insurance is a great way to provide security and peace of mind to you and your family. The payout can help with debt, school fees, funeral costs, and give you peace of mind regarding your family and loved ones’ wellbeings should you pass away unexpectedly. 

There are multiple times in your life where you would really benefit from getting life insurance, and although it might seem like a daunting task because you’re young and you feel uncomfortable planning ahead in such a way, death keeps no calendar. In fact, the best point in your life to buy life insurance is when you are young and at your healthiest point, as this drives the premium down since you won’t be categorised as a high-risk client (unless you work a high-risk job, or are a thrill-seeker who constantly looks for the next new adventure; more on that later). 

Here’s all the points in your life that you would benefit from having life insurance, to make sure that there is a safety net: 

Running your own business 

If your family’s primary source of income is your own business, then it is vital to make sure that your business keeps running even after your passing. However, it might be hard for your family to keep your business running after your passing. First of all, your loved ones need time to grieve, which is why your business would probably close for a while. Furthermore, if your loved ones don’t have the expertise to help the company stay functional, they might need to dip into their own funds to maintain it. If this is not possible, they might end up having to sell the business or their shares in it.

A life insurance policy would ensure a payout upon your death that can help your family run the business accordingly. Make sure to think about all possibilities in the future and how life insurance can help your family and loved ones recover from a tragedy and keep the family business.

People depending on your income 

The dependence on your income can come in a number of different forms. You may be married, so your spouse would need the double income to keep living their life as comfortably as possible. You may even have a child, who depends solely on you and their other parent to keep them healthy and happy. Especially in times like now, dual incomes are crucial to maintaining a high quality of life. Furthermore, you might even have ageing parents who need your help to pay for specialised care or a comfortable resting home. 

When you get married, obtaining a life insurance policy expresses love. The loss of either of you would be heart-breaking, but a life insurance policy makes sure that an untimely death won’t also change the course of your or your partner’s financial life. A payout can cover funeral expenses, household bills and debt related to obtaining your home, for example. Although this might be an uncomfortable conversation to hold with your partner, don’t shy away from it as it is crucial to be prepared. 

Furthermore, if you have a child, you now have a person who is completely financially dependent on you for the next 18-plus years. If you were to pass away unexpectedly, a life insurance payout could cover the costs of their upbringing, education, and quality of life in general. Ultimately, this payout is meant to replace your income and add more financial security to the family. Even better, a life insurance policy can act as a way for your children to receive the inheritance you intended them to receive, as the payout would mean that the tax bill, immediate expenses, settlement, and other costs do not eat up this inherited sum, but rather are settled using the payout. 

Finally, you might even be supporting ageing parents with your income. As we all know, pensions cannot possibly cover more expensive treatments and care options that they might need, such as live-in carers or resting homes. After all the sacrifices your parents have made for you, now would be the time to pay that back, by ensuring that they live the last parts of their lives in a safe and restful environment. Of course, you wouldn’t want this sort of financial responsibility to fall on your spouse, especially if they are struggling to make ends meet on one income, and particularly if you have children. 

A life insurance policy gives you the peace of mind you need that all the loved ones in your life, young and old, are covered and cared for in the event of your death. 

Engaging in extreme sports 

If you’re a thrill-seeker, it’s essential to obtain a life insurance policy. Hobbies such as scuba diving, paragliding, bungee jumping, parachuting, and other such activities with a high level of risk are more prone to severe accidents that can wind up in you passing away. Even if you practice something over and over, you never know what might go wrong on the next try – you might reach a limit you were not able to handle.

Of course, this doesn’t mean you should stop investing time in them just because they are risky; if such hobbies bring you joy, then by all means, go ahead. However, a life insurance policy can really set your mind at rest with regards to the future of your loved ones should an accident happen while you are engaging in risky activities. 

Working a high-risk job

Along the lines of the previous point, if you are constantly risking your life while working or engaging in hobbies, it’s worthwhile to obtain a life insurance policy, and with it, peace of mind. Be sure to be prepared for every outcome. A small slip up, bad weather, or just a bad mood can cause accidents and have consequences that would leave your family in a bad financial situation. 

Here at IVALIFE, we have made it as easy as possible for you to buy a life insurance plan with only a few clicks. Our website details all the services we provide and a range of products you may need. We also have a sum-insured calculator that helps you estimate the sum insured based on your dependents, needs, and lifestyle. If you need any help with your life insurance plans, don’t hesitate to contact us on (+356) 2226 9500, or email us at [email protected], and one of our representatives will get back to you shortly.