We have all asked ourselves at some point, do I need life insurance? You’re young and healthy, nothing is going to happen to you, right?

Sorry to be a debbie downer, but the reality is anything can happen to you at anytime. Will someone suffer financially once you’re gone?

Will your family be able to afford mortgage payments and other living expenses? Funerals are really expensive, will they be able cover the cost?

If the answer is yes to any of those questions, then it’s probably a good idea to look into an insurance policy. Life insurance will help replace your income so your family can meet important financial needs if you are no longer around.

This week we have Francois de Lame from PolicyGenius on the show to answer our questions about life insurance.

Who Needs It?

You’re Married

Most people start to think about life insurance when they get married because they are starting a life another person and building a future together.

If something happens to you, will your spouse’s income be enough to pay off debts and cover living expenses? If you are the breadwinner, your partner could find themselves in a really bad financial position if they are left with good amount of debt- like a mortgage or students loans, for example.

You Have Kids

For most families two incomes are necessary to make ends meet. If you died suddenly, could your family continue their standard of living on one spouse’s income? Would the plans for your children’s future, like going college, be affected?

Even if you’re planning to have children soon, you’ll want to buy life insurance now before the pregnancy. Prices can go up. Getting a policy will insure they can still have the future you saved for even if you are not around.

You’re a Single Parent

If you are a single parent and don’t have life insurance stop reading this and look into getting some right away. With so much responsibility resting on your shoulders, you need to make sure you have insurance to protect your children’s future.

Although it is super important, only about 4 out of 10 single parents have life insurance. The ones that do usually need more. As the sole breadwinner and caregiver, your children depend on you and only you. What would happen if you were no longer around?

You’re a Stay-At-Home Parent

Just because you don’t get a paycheck every week doesn’t mean you don’t make an important financial contribution to the family. Besides taking care of children, there are so many other important tasks and the value is often underestimated.

Average cost of daycare in NYC tops $16G. It’s the largest annual household expense for many families leaving them struggling to find affordable care. Without the stay at home parent around, the cost of living significantly increases for the other parent, Life insurance can help your family preserve their quality of life.

You’re Single

Most single people don’t need life insurance because no one depends on them financially. However, don’t wait too long to get a policy. It’s much cheaper to get a policy when you’re young and healthy. In the insurance world, the older and less healthy you are, the more you pay for insurance.

If you are providing financial support for another family member like a aging parents or a sibling you may want to consider life insurance when you’re single.

How Much Do I Need?

Figuring out how much life insurance you need is different for everyone. It depends on your personal and financial situation. There are three main drivers that affect the amount of coverage you need.

Family Size– How many kids you have and thei...

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Episode 478 - How Much is That?