Do you need life insurance? People who are trying to cut back on expenses often decide to put off buying a life insurance policy. This is generally because not everyone understands how life insurance can benefit their family. Your specific situation determines whether or not you need life insurance.
Should you purchase a life insurance policy? The answer to this question depends on a number of factors. The thing to keep in mind is that, in general, people buy life insurance in order to be certain that if they die they will still be able to provide some financial security to their family.
The death benefit will go to whatever beneficiary you have selected. Usually, the money is used to pay for things like your funeral expenses, medical bills that your health insurance didn’t cover, and the remainder of your mortgage. People who have amassed a fortune in their savings accounts might not need a life insurance policy. In their case, they already have the money that their family would need in order to continue the lifestyle that they are used to.
You need a life insurance policy if you are married. It has become common for both spouses to have full time jobs, (if they can manage to find that type of employment in this economy). If you pass away, and can no longer contribute your income to you household, this is going to have a huge impact on your spouse’s finances.
If only one of you is employed, and that person dies, this is going to bring financial devastation to the spouse that isn’t working. Life insurance can provide some financial protection to the love of your life, in case the unthinkable happens.
If you have children, (or are planning on having children in the future), you need a life insurance policy. Again, the point is to ensure that there will be some money available to your children in the event of your death. Some people will make their spouse the beneficiary because they trust their spouse to use the money to keep the family going after the person passes away. If you have children with someone whom you are not married to, (or have divorced from), you may want to make your child the beneficiary.
If you are the caregiver of an aging parent, you need life insurance. This is true whether you are married or single. The care you are providing for your parent is something that you are doing out of love. It would be extremely expensive to hire someone to provide that same care to your parent. You can buy a life insurance policy for yourself, and make your parent the beneficiary. This way if tragedy strikes and you pass away before your parent does, there will be some money that can be used to meet your parent’s needs.
If you have a mortgage, then you need a life insurance policy. Make sure you purchase enough life insurance to cover the amount that is left on your mortgage. That way, you can be certain that your family won’t lose the house after you are gone.
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