We moved my youngest son into his new apartment. It was bitter sweet. It is a rite of passage. He is growing up and coming into his own. He is officially grown up and we are officially empty-nesters. As we purchased new furniture, house wares and some basic apartment essentials we realized how exciting but sad this change is. We consoled our self thinking this was good for him; deep down we felt such a sense of loss. He was moving on and as scary as it was for him and it was heart-wrenching for us to see him move out. We could see on his face this was a big adjustment for him as well. He actually asked us to spend the night before we headed home.
Now what to do? We are downsizing to a smaller home and moving to South Carolina. Working for a direct marketing agency in the data business I know that this means I am a trigger. I am a new mover, a highly sort after commodity. I expect to be inundated with offers for various products and services. As a new mover/homeowner and especially to a new location, I will need all types of products and services such as, furniture, house wares, dry cleaning, hair dressers, barber shops, doctors, dentists, financial advisers, auto and home insurance. Frankly speaking, we are an insurance agents dream.
Since we are no longer a multi-generational household, should we downsize our insurance too? Not so fast, we will still have our own expenses. What if something were to happen to my husband or I, would it be a financial burden for either of us. The answer is a resounding yes!
When you think about life insurance you are thinking about protecting your children’s future should you or your spouse pass away suddenly. With the kids grown and out the house – Whoo-Hoo! We have to now think of each other. What financial burden would we leave to each other should something happen to one of us?
We will have smaller expenses after we sell our current home. However, we are looking to purchase a smaller house, so we will still have a mortgage. Also, we have car notes, some credit card debt and student loans. I would hate it if either of us fell on hard times due to the loss of an income. Life insurance would be the answer to these concerns.
We just need to determine how much insurance we will need to protect us. We expect our financial obligations to last for at least 15 years. We do not want to buy too much because we have overestimated our need or too little because we brought the wrong product that made it unaffordable to purchase the amount we really do need. The best product choice for us will probably be Term Life Insurance. It will be for a fixed term at a fixed rate. If we purchase it now, it will protect us from higher premiums at a later date.
Whole Life also known as Permanent Life insurance is another option. This type of policy is sometimes marketed as an investment product. Whole life policies have a cash value that can grow over time. At this time we would prefer to keep our retirement savings separate from our life insurance.
Finally, insurance provided by your employer is great to have but it will not fully cover the financial needs of your family in the event that something should happen to you. You should always supplement this coverage with your own private insurance or purchase additional insurance from your employer. My husband and I both have this type of insurance but use our own private insurance to bridge the gap for full insurance coverage.
Life insurance needs are something that should be reviewed regularly especially to keep it up to date with life events such as; a new job, a new home, or a new child. All these events are considered life triggers that should require us to look at our overall financial situation. These events will affect your current insurance needs. Major life change should equal major insurance change.
With the average cost of life insurance at $30/month (Source: LIMRA 2015 ) It seems like a pretty good investment for peace of mind to me.
So as we hug our son good-bye a little tighter and wait with bated breath for all the new offers I can expect in my new mail box.
Stay tuned to see how life happens and plans can be derailed.