Life insurance is one of those things that no one likes to think about unless they absolutely have to. It’s stressful to think about the end of your life, and a lot of people use the excuse that they are “too young” or “too healthy” to think about such a thing. But, let me tell you, it’s never too early to think about the preparations for the end of your life. My mom passed away about 2 and a half years ago now, and she was in her mid-forties. So, you can’t use excuses anymore; there are financial and personal reasons to think about life insurance and other end-of-life preparations way ahead of time.
Today, we’re going to look at a few facts about life insurance that people may or may not know.
Singles need it too. I’m single and I have some pretty basic life insurance. It’s not a ton, but I have it. Why? Because even if I don’t end up with any beneficiaries, I still have to be buried and such. No one may be getting my money, but I still have to deal with end-of-life expenses. So, please, even if you’re single, have at least minimal life insurance to make up for those kinds of important costs.
There’s never really too much life insurance. Life insurance really isn’t that expensive if you get it early enough in life and you’re in relatively good health. Some people go by the “twice my yearly salary” rule, but if you have things like a mortgage payment or some other sort of excessive debt, you may want to consider getting more than that. My mom wanted money to leave my brother and I, even though we were likely going to be adults when she passed away (I was, my brother wasn’t). That money doesn’t replace you, but it can ease some strains on your family members if you leave them a little extra than what’s needed. Consider these things when you’re trying to figure out exactly how much life insurance to get.
Make sure your beneficiaries know your information. Please do this. When my grandmother was sick and dying (a year and a half before my mom passed), my mom had to dig around in order to find the information she needed. We didn’t even really know about the life insurance policy until my grandma had enough clarity one day to tell my mom where the stuff was. If you don’t know about insurance policies, the insurance company is not likely to contact you about it. Your loved ones need to reach out to the insurance agencies in order to get your benefits. Do everything you can to make that process as seamless as possible.
Have you thought about life insurance? What are some of your plans for your end-of-life money dealings? Do you struggle with talking about this, or have personal stories about life insurance flub-ups? Share some thoughts in the comments, have a great week, and we’ll see you back here next week!