2007 Life Insurance: It Was a Very Good Year...
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Newlyweds Need New Life Insurance
Congratulations if you got married in 2007. Perhaps you and your significant other felt lucky and tied the knot on 7/7/07. The average number of weddings registered on the website The Knot for any Saturday in July is about 12,000, but for 7/7/07 the number tripled to 38,000. Even if you are feeling lucky after your triple sevens wedding, you shouldn’t gamble by not having life insurance.
Most newlywed couples do not need extremely high levels of life insurance coverage; however, securing extra coverage at a younger age is a sound financial decision. As you begin to purchase things together (such as a house) and acquire debt, it is important to make sure you are adequately covered in the event of a catastrophe. Many find it easy to pay their mortgage when they are part of a two-income household, but those same people could find themselves in a financial pinch if something were to happen to their partner and they had to survive on their income alone.
Divorced or Widowed in 2007? Why You Don't Want to be Like Mike
Famous Chicago Bull Michael Jordan is getting divorced from once wife Juanita. What makes this an atypical divorce is that if Juanita gets the customary half of everything, she could get more then $150 million in the settlement, making it the most expensive divorce in entertainment history.
Being newly divorced or widowed is a difficult time. As much as you may be hurting, you must also consider practical matters such as life insurance. You may have increased financial obligations now (for example, paying for accommodations and expenses on one salary instead of two, etc.), and you may have lost life insurance coverage you previously had through your spouse. Getting divorced means a change in your life insurance coverage needs; make sure you update your coverage if you did get divorced or widowed this past year.
Welcoming a New Addition to Your Family in 2007
This one may seem a little more obvious, but in the excitement of planning for their new baby, many people forget to adjust their life insurance to their new needs. In addition to other important forms of insurance, such as health insurance and coverage for catastrophes such as fire, flooding or burglary, it is also important to make sure that you will be able to take care of your kids financially.
If your spouse were to pass away, would you be able to provide for your children's many needs? Or, if you were a stay at home parent and the major breadwinner of the household were to pass away, how would you take care of your children? Make sure you and your spouse have adequate life insurance coverage to protect both yourselves and your children. And make sure to adjust your beneficiaries as your family grows.
Enjoying the Prime Years of Life
Maybe 2007 was the last year you had to work. Now you can’t start relaxing and living the good life in 2008. But, it is also true that most new retirees do need to think about maintaining an adequate level of life insurance coverage. Consider your children or spouse you may leave behind. Even though your children may be grown and on their own, and your spouse may be able to live comfortably on his or her retirement savings, there are many special circumstances in which they may find themselves in financial trouble if you were to pass, or vice versa, you if they were to.
Life insurance is made to protect your loved ones financially in the event of your passing; keeping them financially secure and avoiding debt caused by funeral expenses. As your life changes, so does the amount of coverage you need. The beginning of the year is an excellent time to either shop around for new life insurance or reflect on the past year to update your coverage. As you ring in the New Year with your family and friends, think about how you could financially protect them with the right amount of life insurance.
Many people may feel they don't need life insurance when they are young. While your financial needs may be lower at a younger age, the rates are also substantially less expensive when you're young. Remember, the goal is to cover your primary assets so should something happen to you; your beneficiaries would be able to persevere financially. The best advice is to lock in as much protection at a young age while your health is good and the price is right.