Do I Need Life Insurance?

It's Not for You—It's for Them.

Many people ask us, “when is a good time to get life insurance?” Well, it varies. If you recently got married, added to your growing family, or started a business, we recommend getting a term life policy. The bottom line is you need a way to protect your dependents, financially, if something were to happen to you.

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What Is Life Insurance?

Life insurance is a contract between you, the policyholder, and an insurance company that provides financial protection against death. If you die sooner than expected and had coverage in place, the policy will pay out a death benefit to your loved ones or whoever you list as your beneficiaries. This death benefit can be used for any purpose, including gas, groceries, student loans, medical bills, etc.

There are two primary types of life insurance; permanent life and term life insurance. Permanent life insurance lasts for your entire lifespan, while term life only lasts for a set period. To keep either type of coverage active, you must pay your premiums. Though, regardless of whether you pay your premiums or not, term life plans will end at some point.

Who Needs Life Insurance?

If you pass suddenly, it may leave important people in your life responsible for debts that you owe. This could put them in a very difficult position, adding unwanted financial stress to an existing emotional burden of loss.

To protect your family, you should prepare in advance with a life insurance policy. Here are some particular scenarios that warrant life insurance:

  • Someone else may inherit your debt – Debts don’t just disappear when you die. If someone else may inherit your debts, you can protect them by having a life insurance policy in place. 
  • Your family relies on your income – If you die, will people that rely on you suddenly become unable to pay their bills? Whether it’s children or a spouse, you shouldn’t let the full financial burden fall onto them once you die. Protect them with life insurance. 
  • You have no funeral savings – The average funeral costs around $9,000. If your loved ones don’t have access to these funds, cash value life insurance can help.
  • Your business will fail without you – Your business may rely on you as a primary earner. If you die, how will they replace your income? It helps to have some portion of your death benefit allocated to your business, just in case they need funds to replace your earnings. 

Who May Not Need it?

If nobody in your life will be financially hurt by your sudden absence, you likely won’t need a life insurance policy. Instead, you may find it helpful to invest your money in other assets, such as stocks, bonds, and retirement funds. 

With that said, the younger and healthier you are, the more affordable life insurance will be. If your life has the potential to change in the future, consider getting coverage now while it is still at a good price.

Contact an Expert Today

Find out if life insurance fits your situation by calling Overton Agency. We can help you determine how much coverage you need, then guide you to a plan that falls within your monthly budget. To reach an agent directly, please call 501-881-2050.

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We are not connected with or endorsed by the United States government or the federal Medicare program. We do not offer every plan available in your area. Currently, we represent 8 organizations which offer 72 products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance program (SHIP) to get information on all your options.

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