Today your Plymouth insurance agent EnviZion Insurance will be talking about who needs life insurance, some basics of life insurance, and how to calculate how much you need and the different approaches to take when you’re looking at life insurance. So life insurance as a whole is something that should be viewed that everyone will need at some point in their lifetime.

So many people associate life insurance with somebody that earns an income, owns a home or has children, which are all true, but there are other people and situations that require life insurance as well. So life insurance can be for anybody regardless if you’re married, own a home, have children because it’s associated more from a financial aspect of protecting your finances for anyone who relies on you or has a vested interest in your finances.

The most common types of people who need life insurance are the breadwinner of a family. Anyone with children (especially single parents) or is married also automatically should have life insurance. The more uncommon types of people who need life insurance are stay at home parents and  individuals with a home or other very high debt should have life insurance.

Now as your Plymouth insurance agent I would like to get into an example here. We will start with the breadwinner in the family. Having a life insurance policy on a person in this situation is completely required. If that person was to pass away and there’s no coverage in place. If they own a home, have any credit card debts, they have any auto loans, all of that could just instantly evaporate for the rest of the family, because they’re not able to pay for the payments for all of those things. In addition, for the child, you have to think about things such as college expenses, clothing, food, just daily items that need to be purchased. So the things to consider and account for when purchasing life insurance are how much money they make? How much debt do they have? How much does the family spend monthly on food and entertainment and all of those things? Do they have a retirement fund for their spouse that’s going to allow them to no longer need to work?

In this next example we will take a look at a stay at home mom. The key factor to remember is that even though a stay at home mom does not earn an income, she is just as important when it comes to finances because she takes care of your kids full time, cooks, cleans, does shopping, etc.. If she passes away, you would be needing to pay for things like a daycare and house cleaners. How would you cook your meals? Would you need to get a service or hire someone like a nanny to help you out? What is your situation when it comes to replacing that very key financial provider in the form of time of a stay at home mom? One of the biggest mistakes we see as your Plymouth insurance agent is when people don’t account for this type of financial component of a non-income earning stay at home parent. Not that they don’t think their spouse or partner is not valuable, but they just see it from this important financial standpoint. When it comes to dollars coming into the account, they just think of the income earner and it is hard to recognize the financial value in the form of time. The value of the time that the stay at home parent provides is usually just as significant as the income because of a breadwinner.

When your Plymouth insurance agent EnviZion Insurance breaks down who needs life insurance, we find it important for everyone to really take an account of their finances and their life situation and to ask kind some core questions. The first one is, does anyone rely on me for income? The second one would be do I provide financial income in the form of time value to my family that would otherwise cause my spouse or my partner to financially pay for what I do every day for our family? The last one would be, do I have a lot of outstanding debt? Is there someone that would need to take on that debt if I were to pass away? Do I have coverage for all the things that I have accumulated so that someone else is not responsible for the debts that I have leftover? Because although you may not be married or something like that, there may be other people that have an interest in your finances and that are connected to your finances, that you don’t want to leave in a hard situation if you were to pass away unexpectedly.

So overall life insurance is really for a multitude of people. It’s not for just one set of people such as a married couple with kids. It is for all sorts of people like breadwinners, people with children, stay at home parents, married couples. It’s for people that have shared finances or those who have debt that will be left to another person or party. Life insurance provides financial protection for a lot of different situations that you may think don’t apply to you until take an account of your finances and your life. We suggest getting in touch with EnviZion Insurance, your Plymouth insurance agent  and let us help you break down life insurance to see how it fits into your financial plan. We take the time to consider all the aspects of your life, and help ask you the right questions to make sure you are properly protected. What has been found over time is that too many people think they do not need life insurance, but really do. The last thing anyone wants to happen is to see someone be financially crippled due to the loss of someone who supports them financially. Life insurance is a gift to many families who lose a loved one, and is not a type of protection that we take lightly. It is our goal as your Plymouth insurance agent to provide our community with sound insurance advice especially when it comes to life insurance.