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3 times life insurance is worth it

If you have children that depend on you then life insurance is worth having. Getty Images

Life insurance is considered to be a vital part of financial planning. While other insurances cover trips, pets or cars, life insurance provides critical economic support for your loved ones in the event of your death. In exchange for a minimal fee to a provider each month (often discounted if paid annually), policyholders can secure protection worth hundreds of thousands of dollars (and sometimes millions). 

And yet, many American adults still don't have life insurance policies. "In January 2021, just 52% of consumers reported owning life insurance (e.g., individual, employer-sponsored, etc.), which is down from 63% in 2011," according to a study conducted by LIMRA.

Life insurance can provide robust financial protections for the other 48% of adults cited in that study, too. And while everyone's personal circumstances are different, there are some reliable ways to know if it's worth it. We will discuss three of those times below.

If you think you could benefit from the protection life insurance provides then start by getting a free price quote now.

3 times life insurance is worth it

Life insurance is often beneficial to have at all stages of your adult life. It's especially worth it during these three times.

When you get married

If you're single, financially independent and don't need to support anyone else, then you may not need life insurance (or you can get by with a minimal amount). Once you've gotten married, however, your financial situation may change. And if it does then you're life insurance should change with it. 

If you and your partner depend on each other to pay the bills and make ends meet then you should both have life insurance policies in place. This will ensure that, should the worst-case scenario arise, the other person won't suffer major economic loss. Life insurance after you've gotten married is worth it because it will provide a financial safety net for your spouse in the event of death. Get a free price estimate now so you know exactly what it will cost.

When you have children

The same reason for buying life insurance when getting married applies to when you have children. In short: If you have people depending on you financially, whether that's a husband or wife or children, then life insurance is worth having. This will ensure there are no financial issues if you die before everyone is economically secure. 

What should you consider to be "children"? All kids under the age of 18 should be covered. But if they're older and in college or just starting their career and still need financial support, then it still may be worth keeping. 

Do a realistic appraisal of your family's financial situation and think of what could happen if you were to lose one (or both) parents' incomes. If there's no financial alternative then life insurance is worth it.

When you buy a home or owe a mortgage

Life insurance isn't automatically worth it when you buy a home or owe a mortgage. Some people don't mind having their homes sold after their death. 

But if you want your home to stay with the people who currently reside in it - or if you want them to be able to obtain the greatest financial benefit by selling it for top dollar - then you should secure a life insurance policy. A life insurance plan in the amount you owe to your mortgage lender will give your beneficiaries the option of maintaining their current standard of living in your home or they could pay it off and reap the benefits of selling the house mortgage-free. 

To provide these options, however, you'll first need a life insurance policy that covers what's still owed. Once you have an approximate figure in mind you can get started. Haven Life can provide a free price quote online today.

The bottom line

Life insurance is a valuable financial tool for millions of American adults. And it doesn't need to be without value. In fact, there are many times life insurance is worth it, especially if you're married or have children that depend on you. And if you have recently bought a home (or still owe a mortgage) life insurance can be valuable by making sure your home stays with your loved ones (and is paid off with your policy).

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