\n<\/p>\n
Your life is a long journey, and you spend years traveling to a huge mountain. When you finally get there, you climb until you can look down and enjoy the view.<\/p>\n
Unfortunately, you don\u2019t always make it to the peak. That\u2019s why you shouldn\u2019t continue your quest without \u201cpacking\u201d some life insurance.<\/p>\n
After you leave the picture, life insurance can help your loved ones cover:<\/b><\/p>\n <\/p>\n <\/p>\n You\u2019re eager to set off and cover more ground. Before you leave, take a seat and read this life insurance map.<\/p>\n Here\u2019s how life insurance works:<\/b><\/p>\n Think about who needs the benefit after you\u2019re gone. Consider your spouse, partner, children, grandchildren, or a charity.<\/p>\n Name more than one beneficiary in case one of them passes away before you do.<\/p>\n Minors can\u2019t receive direct life insurance benefits. Name a trust as a beneficiary if you want a minor to receive the payment. This way, a guardian will look over the funds until the minor turns 18.<\/p>\n How Much Coverage You Need (No Magic Number)<\/p>\n Some experts say you should have 10 to 12 times your yearly income in life insurance. There\u2019s no real magic number, though.<\/p>\n First, calculate how much you pay for:<\/b><\/p>\n Combine your financial obligations with how much you want to leave behind. That should give you a solid ballpark figure.<\/p>\n Your Employer Offers Life Insurance. Is It Enough?<\/b><\/p>\n Does your employer provide enough life insurance to cover one or two years of your salary? That\u2019s a good start, but what happens after you leave your job?<\/p>\n Your group life insurance will either:<\/b><\/p>\n It\u2019s legal to have more than one life insurance policy. Rely on an\u00a0independent agent\u00a0<\/a>to help you pick the right plan! \u00a0<\/b><\/p>\n \u00a0<\/p>\n <\/p>\n Your twenties play out like a trip through a confusing forest. You make a torch and navigate around twists, turns, and towering trees.<\/p>\n You try not to get lost in the \u201cbig\u201d questions:<\/b><\/p>\n When you\u2019re young and single,\u00a0hold on to your sense of direction with a back-up plan: life insurance.\u00a0<\/p>\n From a social perspective, \u201csingle\u201d could mean:<\/b><\/p>\n From a legal perspective, \u201csingle\u201d means you aren\u2019t married.<\/p>\n \u00a0<\/p>\n 44% of millennials\u00a0 overestimate the cost of life insurance by 500%<\/a>. A\u00a0Pekin Insurance agent<\/a>\u00a0will help you find the right plan for your budget.<\/p>\n Does your family medical history include cancer or heart disease? If that\u2019s the case, you should consider applying for life insurance early in life.<\/p>\n Young, healthy applicants receive lower rates that go up as you age.<\/p>\n \u00a0<\/p>\n College Costs Continue to Climb<\/b><\/p>\n University costs have increased\u00a0nearly eight times faster than wage growth between 1989 and 2016.<\/a>\u00a0Tuition and fees will continue to climb.<\/p>\n Need proof? Check out these stats from the\u00a0<\/b>College Board College Pricing Report:<\/b><\/a><\/p>\n \u00a0<\/p>\n Trade school offers lower tuition and more job-specific training. Plus, most of their programs take less time to complete.<\/p>\n Trade school degrees could lead to these careers:<\/b><\/p>\n Still,\u00a0the average trade-school degree costs $33,000<\/a>, according to Hub & Spoke.<\/p>\n Who would take care of your student debts if you die before repaying them? Federal student loan debt usually gets canceled when a person dies before paying it off.<\/p>\n Private student loans don\u2019t work like that. A co-signer would pay off the remaining balance in a worst-case scenario.<\/p>\n Think about\u00a0a term life policy\u00a0<\/a>as a back-up plan for your college debt. With term life, you have coverage for a set amount of time like 10 years.<\/p>\n Term life coverage serves two purposes:<\/b><\/p>\n \u00a0<\/b><\/p>\n \u00a0<\/p>\n <\/p>\n You thought you\u2019d never make it through the forest of your younger years. But you did it!<\/p>\n You picked up a traveling companion along the way, too. Now you have foothills to climb and new challenges to conquer.<\/p>\n Here\u2019s how life insurance can offer aid through this part of your quest.<\/p>\n \u00a0<\/b><\/p>\n The average monthly mortgage payment falls somewhere between\u00a0$1,022 and $1,505<\/a>. That’s $12,264 – $18,060 per year.<\/p>\n The cost for maintaining your home\u00a0<\/b><\/a>depends on:<\/b><\/p>\n You have to keep the electricity, water, and other utilities running, too.<\/p>\n Move.org says\u00a0<\/b>average utility costs\u00a0<\/b><\/a>in the U.S. total $398.24 per month:<\/b><\/p>\n Would your family be able to cover the mortgage and monthly expenses if you left the picture?<\/p>\n Child Aware of America says\u00a0childcare costs more than college tuition in 28 states<\/a>. Their study includes center-based daycare and family-based care.<\/p>\n It doesn\u2019t stop there.\u00a0Over 70% of families spend more than 10% of their income on children<\/a>, according to the Care.com 2019 Cost of Care Survey.<\/p>\n Think about what your family would do without you. It\u2019s not a happy thought, but it\u2019s worth considering.<\/p>\n That\u2019s where life insurance comes in. It helps your loved ones pay for ongoing education and development, whether it\u2019s daycare or college.<\/p>\n \u00a0<\/p>\n Nerdwallet says\u00a0$8,649 is the average ownership cost<\/a>\u00a0for vehicles driven 15,000 miles per year.<\/p>\n Even if your kids drive family hand-me-downs, someone has to pay for:<\/b><\/p>\n The good news: life insurance can cover the costs of vehicle ownership.\u00a0<\/b><\/p>\n \u00a0<\/p>\n Take a look at these\u00a0average funeral costs<\/a>\u00a0from the\u00a0<\/b>National Funeral Directors Association (NFDA)<\/b>:<\/b><\/p>\n You can pay for final expenses with life insurance, and it’s a great way to avoid a crowdfunded funeral.<\/p>\n With a crowdfunded funeral, someone in your family would set up an online fundraiser to help pay your final expenses.<\/p>\n Doing this would put financial pressure on your loved ones. Plus, there’s a possibility of not hitting the goal.<\/p>\n \u00a0<\/p>\n\n
Your Map – Stock Up on Life Insurance Answers<\/b><\/h2>\n
How Life Insurance Works<\/b><\/h3>\n\n
How to Choose Beneficiaries<\/b><\/h3>\n\n
Surviving the Forest – Your Younger Years\u00a0<\/b><\/h2>\n
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A Definition of “Single”<\/b><\/p>\n\n
Easy on the Wallet<\/b><\/h3>\n
Your Family Medical History<\/b><\/h3>\n\n
Trade School vs. College<\/b><\/h3>\n
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\u00a0<\/h3>\n
Where Student Loans Go<\/h3>\n
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Climbing the Foothills\u00a0 \u2013 Starting a Family<\/b><\/h2>\n
Your Home Costs Add Up (and Up and Up)<\/b><\/h3>\n
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Daycare Can Be More Expensive Than College<\/b><\/h3>\n
From Clunkers to Luxury Vehicles<\/b><\/h3>\n
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The Pitfalls of Crowdfunded Funerals<\/b><\/h3>\n
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Stay-At-Home Parents Need Life Insurance, Too<\/b><\/h3>\n