The Idea of Life Insurance and Why It’s Important

Idea of Life Insurance - What occupations are dangerous? Is yours? Do you need more life insurance as a result of the increased risk involved in your work? The Bureau of Labor Statistics says the ten most dangerous jobs are:

1. Timber cutters

2. Airplane pilots

3. Construction laborers

4. Truck drivers

5. Farm occupations

6. Groundskeepers

7. Laborers

8. Police and detectives

9. Carpenters

10. Sales occupations

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Is your life insurance coverage adequate? Some occupations are risky, some are not. But regardless of what you do for a living, you should thoroughly examine your life insurance needs. Life insurance will ensure that the financial needs of your loved ones are taken care of after you die. If you’re single, with no one truly financially dependent on you, you probably have no use for life insurance. But if any of the following statements ring true for you, then you need to consider getting life insurance:

• You’re married and your spouse depends on your income
• You have children
• You have an aging parent or disabled relative who depends on your income
• Your retirement savings, pension, or other cash accounts won’t adequately support your loved ones after you die
• You have a large estate and expect to owe estate taxes
• You own a business

Calculators and worksheets are available online to help you determine how much life insurance you need. You may want to contact an insurance agent or broker who can help you determine what type of life insurance is best for you and the amount of coverage you need. These days, it’s not just a simple task of saying, “I need to buy life insurance” and getting a policy. You need to choose from whole life, term life, variable life, universal life, a combination of whole and term, etc.  And how about disability insurance coverage?

If you work in a high-risk occupation, you probably know how important it is to have disability insurance coverage. But don’t rely on government programs such as Social Security and workers’ compensation as your main source of protection. In reality, government programs pay only limited benefits under restrictive terms (e.g. you must meet a strict definition of disability to qualify).  Your employer may offer group disability insurance at low or no cost to you. But you may also want to consider purchasing an individual disability insurance policy.

Although you’ll pay more for individual coverage than for a group policy, you often get more benefits. And keep in mind that if you leave your job or otherwise terminate your relationship with a group, you can’t take your disability policy with you, and you usually can’t convert it to an individual disability policy. This means that you may be left without disability coverage when you need it most.