Getting Life Insurance Is Not a Red Flag

In the movies, getting life insurance hints at a more devious plot, where someone attempts to kill someone else to collect the insurance payout. The entertainment industry can make it seem like getting life insurance is something that raises suspicions. It's actually one of the best things you can do for yourself and your family. 

Of course, you don’t want to imagine what life would be like for your family without you or your partner. If the worst were to happen, you don’t want to add financial strain to the loss. Life insurance can help. It’s a financial safety net — that’s why it is good to have life insurance.

Life Insurance Helps Replace Income

Your family probably relies on the income you and/or your partner earn. Life insurance can give them money they can use for things like:

• Childcare expenses
• Paying the mortgage
• Covering the cost of college
• Maintaining a standard of living
• Supplementing retirement investments

You May Want Life Insurance Even if You Don’t Have a Family

If you have a lot of debt, a life insurance policy might be a good idea, even if nobody relies on your income. 

If your parents or other people have cosigned on loans, they’ll be responsible for paying them off in the event of your death. And if you own a home, the property could be repossessed. 

Life insurance can give your beneficiaries the funds to pay off loans and mortgages.

If you and your partner both work, you may not think you need life insurance. But it could still be a good idea if the survivor would need both incomes to maintain their standard of living, or to save enough for retirement. 

You may also want life insurance if you own a business, since your family or business partners may need money to see the company through the transition.

Are There Reasons Not to Buy Life Insurance?

Life insurance is most important if there are people who rely on your income and would have to change their lifestyles or struggle financially without that money coming in. 

So, if you’re a young adult without a partner or kids who depend on your income, you might not need life insurance. 

You might also not need life insurance if you’re retired or close to retirement age and you have enough money to cover your retirement living costs. If you don’t already have a life insurance policy, getting one at this point could be very expensive, especially if you have any health conditions. You might not even qualify for one. 

Get Help Evaluating Your Life Insurance Needs

You may be asking yourself if life insurance is good or bad. Despite what you see in the movies, it’s not bad. In fact, a better question to ask is whether you need life insurance at this stage in your life. There are times when it’s important and times when it may not be necessary. Of course, as your life changes, your insurance needs may change as well. 

Connect with a Farm Bureau financial advisor who can review your income, debts and responsibilities and help you decide whether life insurance is the right choice.