7 Major Events That Impact Life Insurance

When major events happen—such as marriage, children and college—it’s easy to get swept up in the excitement and planning. But making the most of the moment also means preparing for the future, and that includes ensuring you have the right kind and amount of life insurance.

Whether you already have a policy or are considering one for the first time, it’s important to know how insurance can help protect you through life’s twists and turns.

If you're paying down significant student loan debt, obtaining life insurance coverage that makes any co-signer of the student loan a beneficiary can be a smart. This is because the insurance coverage can help the co-signer(s) pay down the loan balance plus interest.

Tying the knot means sharing your lives—including expenses and responsibilities. Should something unexpected happen, life insurance can be key to ensuring that you or your spouse are taken care of financially. When deciding on the amount of coverage, consider salary plus things like child care and other major expenses. And if one spouse is going to be a stay-at-home parent, factor in those potential coverage needs too.

A home is likely one of your largest purchases. Help make sure that your family can stay in the home should anything happen. Term life insurance, which provides coverage for a specified amount of time (10, 20 or 30 years, for example), is a popular choice for people who have mortgages. This type of coverage can provide security and peace of mind.

Even if your job offers life insurance through a group policy, you may also want to consider an individual policy. Life insurance through work may end when you no longer work for your employer, and there’s no guarantee that your new employer’s policy will meet your needs. Take time to compare your options and consider what makes the most sense for your family.

Starting a family means you’ll be making myriad decisions right away, as well as in the long term, including how to pay for college expenses. Having a sufficient life insurance policy for each parent can help fulfill college dreams if the worst happens.

Another consideration is getting life insurance for your child. Insurance rates are primarily based on age and health, so you may be able to lock in competitive premium rates by getting a child on their own policy early.

Maintaining your desired lifestyle during retirement requires planning and preparation. Life insurance policies that come with a cash-value component allow for the cash-value account to grow over time, which can then be used as a source of income in retirement years.

Once your kids are living on their own, you may still want to help plan for their future through your estate. A life insurance policy can assist with paying the taxes on any inheritance they receive and help keep the majority of your legacy intact for them. No matter what life stage you’re in, AAA is here to help you plan. Talk with a professional life insurance specialist and find the right coverage for your family.