Reasons you should consider life insurance
Consider the following ways that life insurance can be an important part of your financial wellness, regardless of your family status:
Life insurance enrollment opportunity
Over 40% of families would face financial hardship within six months if the primary wage earner died — and 1 in 5 would start to suffer financially within one month.²
Single adult starting out
If you pass away and don't have life insurance, final expenses and other costs could be a burden on those around you. For example, the average cost of a funeral is $7,000 to $10,000.3 And if anyone, like a parent, has co-signed for loans or other types of debt you have — including some student loans — that person could be responsible for the debt, or related taxes.4
Working parent
You should consider a death benefit large enough to help replace your income and cover family expenses for a given amount of time, usually until your kids are out of the house or your mortgage is paid off, but it could be longer.
Stay-at-home parent with a young family
When a parent chooses to care for children full-time rather than pursue a career, they have life insurance needs, because their labor has economic value. If a stay-at-home parent were to pass away unexpectedly, how would their spouse pay for childcare or other services that a single working parent might rely on to help keep the household running? Life insurance can help.
Homeowner
If you have a mortgage on your house and something should happen to you, life insurance can help to ensure that your family can continue to live their lives in the place they call home.
Yes, you can take the coverage with you if you change jobs or retire. You will pay the premium yourself, typically on a monthly or annual basis, and it will be different than the group rate.
Purchasing life insurance through work is often less cost-effective because of the buying power of a group. What’s more, the process can be easier, especially if the coverage your employer is offering does not require health questions or medical exam and premiums are paid through convenient and automatic payroll deductions.
During this special enrollment period you can get a specific amount of term life insurance coverage without answering any health questions.
Your beneficiary, or beneficiaries, receive the death benefit when you pass away, and if you name more than one, they’ll split the death benefit payment between them according to the percentage indicated by you. Typically, the spouse or children of the covered person are named as beneficiaries, but those aren’t your only options. You can also name a charity, a trust, your estate, or another person close to you as a beneficiary. Parents should know minor children are not eligible to receive the death benefit, so if you have young children, you may want to consider setting up a trust to manage the payment for them until they’re of age.
1 If you do not enroll for life insurance coverage at this time, you may be required to provide a Statement of Health in order to apply for future coverage.
2 Life Insurance Awareness Month, LIMRA, September 2022.
3 Funeral Costs: How Much Does an Average Funeral Cost?, Parting, September 13, 2022.
4 Does a person's debt go away when they die?, Consumer Financial Protection Bureau, August 2, 2023.
5 This is Guardian's Rule of Thumb based on experience and may not apply universally to every individual and their unique set of circumstances.
6 Guardian's 12th Annual Workplace Benefits Study, Prepared and Protected, 2023.
Individuals who have previously withdrawn from completing Evidence of Insurability, have been declined for coverage due to completing Evidence of Insurability, or are considered a late entrant may not be eligible for this offer. Other limitations may prohibit the amount of coverage that you qualify for.
Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
Guardian’s Group Term Life Insurance is underwritten and issued by The Guardian Life Insurance Company of America, New York, NY. Products are not available in all states. Policy limitations and exclusions apply. Optional riders and/or features may incur additional costs. Generic Policy Form # GP-1-LIFE-15. The state approved form is the governing document. For NY, the Policy Form # is GP-1-LIFE-12-NY.
