Do I Need Insurance?
May 4, 2017
Starting a family, planning for your child’s education, setting aside for your retirement, going on a world tour – these are moments in your life when you realize you are not just looking out for yourself.
And while this can feel overwhelming, it really shouldn't be. You just need to be financially prepared for all this. Having an insurance is one way to prepare for these life milestones.
To help you understand why insurance is a good way to get ready for important life events, ask yourself these 5 common questions:
- Do I really need life insurance?
Life insurance is not a requirement. However, once you find yourself starting a family, it is a common time for people to purchase a life insurance policy, and for good reason: At its simplest, it's a way to help make sure your family can meet their financial needs if the unthinkable happens.
Don't I get insurance through my job?
Most people get insured while on the job, although often the policies you get through your employer may only cover the basic expenses that come with someone passing away. And considering that, according to CNN, the new normal is to switch jobs four times by the time you're 32, you may want to look into how changing jobs will affect such a policy.
What is term life insurance?
The two main types of policies are term and permanent life. As its name implies, term lasts for a set term (typically from 10 to 30 years). You pay a set premium for the life of the coverage. If you continue to need life insurance coverage, many insurance companies offer an option to convert to a permanent policy.
Term life premiums are typically more affordable than permanent life.
What, then, is permanent life insurance?
Think of permanent as a long-term investment, a policy that protects your family for your entire life. Within this category of permanent insurance, there are many products you may have heard of before, including whole life, and variable universal life. Though more expensive, permanent life policies build cash value as you continue to pay your premiums, in addition to securing lifetime death benefit protection. They may also offer additional benefits (called riders) for long-term care coverage and are flexible based on changing needs.
How much coverage should I get?
First and foremost, it's important to get a sense of your family's financial needs. Ask expert advice form a Manulife Advisor to know how much coverage you may need in the future, and for your family’s financial security.
There are so many things to consider before buying insurance. The best way is to seek advice from a financial expert. Talk to a Manulife Advisor today or learn more about our products and services.
This article is not intended to provide financial, tax or legal advice. It is intended to promote awareness and is for educational purposes only.
Sources: Feehacks Blog. Do Millenials Need Life Insurance? Kali Hawlk. September 9th, 2014
CNN. The new normal: 4 job changes by the time you're 32. Heather long. April 12, 2016.
John Hancock Insurance. Term vs. Permanent Life Insurance.
John Hancock Insurance. How Much Life Insurance Do You Need? Calculator