3 Critical Times in Your 20’s and 30’s You Need Life Insurance
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.
