Career advice often centers on financial topics like negotiating a raise, investing your salary, and saving for retirement. These are all important steps to building your professional future, but they often overlook the importance of life insurance.
Life insurance can play an important role in helping to protect your financial future. Several career milestones go hand-in-hand with the decision to purchase or review an insurance policy. As your professional career evolves, you may want to consider how life insurance might enhance your financial plans.
Getting your first “real” job
Landing a full-time, salaried position is an exciting milestone for many. Beginning a professional path creates the potential for career advancement and financial wealth. Now maybe the time to secure this promising future.
A life insurance policy can help you protect your finances, should the worst happen to you. Some policies offer optional extras that pay a benefit if you are permanently disabled or become seriously injured in an accident. The life insurance payout could help cover the bills, allow you to take extended leave whilst you recover, or help pay for ongoing medical assistance.
Receiving a promotion
After years of hard work and dedication, you may be up for a much-deserved promotion. A hefty raise may also be on the table, and you might decide to upgrade your home life as a reward. You may consider updating your life insurance to reflect this new lifestyle.
Acquiring assets—a house, cars, investment properties—as you advance in your career is common. An insurance policy purchased when you started working may no longer meet your needs after several promotions. You may consider increasing the total benefit amount to help your family cover mortgage payments, pay off a car loan, or maintain their current lifestyle if you were to pass away suddenly.
Pausing your career
There are many reasons why people might put their careers on hold. Two common reasons are welcoming a new baby or becoming the primary caregiver for a family member. Keeping your life insurance during this period may make sense, even if you’re no longer the primary breadwinner.
People often underestimate the value of work done by stay-at-home parents and unpaid carers. It may sound logical to not cover someone who isn’t earning an income, but this could leave your loved ones financially vulnerable. If you or your partner were to pass away, it would be expensive to pay others to care for your children or family members, cook meals and do general housekeeping. A life insurance benefit could help cover these costs or allow you to work fewer hours whilst your family adjusts.
Nearing the end of your career is a milestone we all hope to reach one day. Getting the chance to relax, travel and spend time with the ones you love is the best reward. As you get your retirement finances in order, it may be time for one more life insurance check.
By the time you’ve reached retirement age, you most likely have paid down or eliminated most of your debt. If you no longer need to worry about the mortgage and car payments, it might make sense to lower the benefit on your life insurance policy. However, you might opt to leave it unchanged to leave your family the money upon your death. The benefit may be appreciated as an inheritance, put towards a grandchild’s education, or used to cover the cost of a funeral or any final expenses you may leave behind.
Life insurance can be an important tool on your way to financial security. Flexible policies, optional extras, and affordable premiums can help you protect the future you’re building, at any stage of your career.