One of the most common questions an insurance agent is asked is, “Do I need life insurance?” The most common answer to that question is, “It depends.” There are many things to consider before deciding what is right for you and your family.
Do you have children? Many families depend on two incomes to make ends meet. If one parent dies, it is imperative that a life insurance policy is in place to protect the financial future of the family. Even if one spouse does not work outside the home, they contribute a great deal to the family’s lifestyle. Single parents have the entire burden of their family’s financial security on their shoulders. If a single parent dies, there may be no one else to provide for the children.
Do you have dependents other than children? Are you taking care of aging parents or a special-needs sibling? If you do, think about what would happen to them if you weren’t around. If they live with you would they be able to stay in your home should you die? What if your home is not paid for? It is important that you consider what you mean to your loved ones in terms of their financial stability.
What will happen as I get older? Many retirees have life insurance so that if they die before their spouse does, their spouse will have money to cover medical expenses that may come up later in life. Many retirees also want to know that their funeral and burial expenses will be covered. Tough economic times as of late have put more of an emphasis on life insurance for retirees. Some people have had their 401(k) accounts cut almost in half. A life insurance policy would help supplement your spouse’s retirement income in such a case.
Do you own a family business? Business owners sometimes buy life insurance to protect their business. Many smaller, family-owned businesses depend on one person to keep that business running. If that person is you, a life insurance policy can protect your company and allow it to keep its doors open until things are back in order.
Are young, single, and healthy? While life insurance probably isn’t even on your radar, maybe it should be. The best rates are available to you at this point in your life so if you plan on purchasing it down the road, it might be worth it to do it sooner rather than later.
The best way to figure out if you need life insurance is to think through your particular situation and then talk to a good life insurance agent. You and your loved ones will be glad you did.