Do You Need Life Insurance?
This is a question many adults, young and old, ask themselves. Generally, life insurance is most important if others depend on your income or if you have significant debts that would need to be covered upon your death. If you have no dependents and no significant debts, you may not need life insurance.
Who needs life insurance?
- Anyone who is working and earning a paycheck. If you pass away unexpectedly and you no longer earn a paycheck, many people in your life may be impacted.
- Parents with dependent children. Life insurance can help ensure your children are financially secure if you were to pass away unexpectedly, covering expenses like childcare, education, and living costs.
- Spouses/domestic partners with financial responsibility. If your income is essential for your partner’s financial well-being, life insurance can replace that income stream if you’re no longer around.
- Homeowners with mortgages. A life insurance policy can cover the outstanding mortgage balance, preventing your family from losing their home.
- Business owners/Business owners with partners. Life insurance can help protect you and your business partners by providing funds to buy out your share or cover business debts.
- Individuals with significant debt. If you have substantial debts like student loans or personal loans, life insurance can help ensure your family isn’t burdened with these debts after your passing.
- Individuals who want to leave a financial legacy. Life insurance can be a way to provide a financial gift to your heirs or support charitable causes.
- Individuals who support aging parents or other relatives. Life insurance can provide financial support for their care and living expenses.
Do you need to increase your life insurance coverage?
You may already be enrolled in one or more insurances, and you may be asking yourself if you should increase your coverage amount. You should consider increasing your insurance coverage when there’s a significant change in your life or finances that impacts your potential risks and needs. This includes major life events, changes in your assets, or adjustments to your lifestyle such as:
- Marriage. Adding a spouse as a beneficiary and increasing coverage to support their financial well-being is often necessary.
- Birth of a child or expanding your family. As your family grows, your financial obligations increase, and you’ll want to ensure your loved ones are financially secure if you pass away.
- New home or major renovations. Mortgage payments and associated costs can be substantial, and life insurance can help your family manage these expenses.
- Career change (new job or increased income). If your income has increased, you might need to increase your coverage to maintain the same standard of living for your family if something were to happen to you.
- New financial obligations (Starting a business, business investment). If your business relies on your income or if you have business debts, life insurance can help protect your business partners and family.
- Financial needs of dependents (college tuition, wedding, elder care). Consider the potential costs of higher education and other future expenses and adjust your coverage accordingly.
- Increased debt obligations. This includes things like funding the care of an aging relative or taking on new loans.
- Income replacement should you pass away unexpectedly. Ensuring your family has the means to continue paying expenses and living the life style they have become accustomed to.
- Inflation and cost of living increases. The cost of living does not stay the same so to protect your loved ones, your coverage should be adjusted to keep pace with the cost of living.
Do You Need Disability Insurance?
Who should consider Disability Insurance?
Anyone who relies on a paycheck to cover living expenses likely needs disability insurance. Disability insurance provides a safety net by replacing a portion of your income if you become unable to work due to illness, pregnancy, or injury.
- Any one who is working and earning a paycheck. If you become disabled with either a short-term or long-term disability and you are no longer earning a paycheck, many people in your life could be impacted.
- Primary breadwinners and those with dependents. If your income is crucial for supporting your family, disability insurance is essential.
- Self-employed individuals. Without employer-sponsored benefits, self-employed individuals are particularly vulnerable to income loss due to disability.
- Professionals with specialized skills. A disability could significantly impact your earning potential if it prevents you from performing your specialized work.
- Individuals with limited savings. If you don’t have substantial savings to cover living expenses during a disability, insurance is crucial.
In essence, disability insurance is a vital part of financial planning for most people. Starting early and securing coverage when you’re young and healthy can provide peace of mind and financial security for the future.
When is the best time to get disability insurance?
The best time to get disability insurance is as early as possible, ideally when you first start working and your income becomes a significant factor in supporting yourself or others. Coverage isn’t subject to Medical Underwriting if elected when first eligible.
Getting it after you’re sick, become pregnant, or injured is too late. Getting disability insurance early is a very good idea for the following reasons:
- Lower Premiums. Disability insurance premiums are typically lower for younger individuals and those with fewer health concerns.
- Increased Likelihood of Approval. As you age, your risk of developing health issues that could affect your ability to get approved for disability insurance and future coverage increases.
- Future-Proofing Your Income. A disability can strike at any time, and having disability insurance in place early ensures you have a safety net to replace a portion of your income if you’re unable to work due to illness or injury.
Footnotes, Additional Details & Disclaimers
This product web page is intended to provide an overview of the benefits available from PEF Membership Benefits Program and is not a complete description of plan provisions. Review of this product web page does not certify eligibility for benefits under this plan. For complete plan details, including limitations and exclusions that may affect benefits, please refer to your certificate.This information is intended to provide an overview of the benefits available from your employer and is not a complete description of plan provisions. The rates shown include administrative fees. Receipt of this flyer does not certify eligibility for benefits under this plan. For complete plan details, please refer to your certificate.
The group policy provides disability Income insurance only. It does not provide basic hospital, basic medical, or major medical Insurance as defined by the New York State Department of Financial Services.
The group disability policy contains limitations and exclusions that may affect benefits. Please see the certificate or ask your benefits administrator for information on Elimination Periods, Waiting Periods, and Pre-Existing Conditions limitations. Group life and disability insurance policies are underwritten by Sun Life and Health Insurance Company (U.S.) (Lansing, MI) under Policy Form Series 13-GP-LH-01, 13-LF-C-01, 13-GPPORT-P-01, 13-LFPort-C-01, 13-ADD-C-01, 13-LTD-C-01, 13-LTD-P-01, 13-STD-C-01, and 06P-NY-DBL
#1702038105 07/25 (exp. 07/26)
