At some point in life, everyone needs life insurance. Whether you get it from your job, purchase it on your own or inherit a policy, you’ll need it. Here are the three times you’ll be happy you got yourself covered:
Getting married. I know from experience that the moment I kneeled down and proposed to my wife, my life would change forever. I was no longer “The Crane Show,” but instead now “Crane the Family Man.” I was no longer taking care of just myself. It was me and my wife and a little bit later, a little daughter. I knew that as well as providing financially, I’d also step it up insurance wise. The general rule of thumb is that you typically want to leave 7 to 10 times your annual salary, which is exactly what I did. Now if something happens to me, I know that my wife and child are well taken care of for the next 10 years.
Having a child. Soon after getting married, my wife and I welcomed our little girl into the world. Once she was born, the protector in me stepped up again. I increased my insurance so that if I were to pass, her college tuition would be fully paid for. I also got my daughter her own Universal Life insurance policy that grows cash value tax-free to borrow from when she's older.
Buying a house with a mortgage. Have you ever heard the term mortgage insurance? Turns out it's just life insurance. If you buy a home that has a 30-year mortgage and you’re paying $1,500.00 per month, that’s $540,000 over 30 years. What happens if you were to pass away, but you had a Term insurance policy for $750,000 or 1M? THE HOUSE GETS COMPLETELY PAID OFF!!! The house gets paid off and the beneficiary gets the remainder.
