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Who Needs Life Insurance?
Home » Insurance » Life Insurance » Who Needs Life Insurance?If someone depends on you financially, chances are you need life insurance. Life insurance provides cash to your family after your death. Known as the death benefit, this cash replaces your income and can help your family meet many important financial needs like daily living expenses, mortgage payments and college savings. Most important, there is no federal income tax on life insurance benefits.
Most people need life insurance. To figure out if you need life insurance, you need to think through the worst-case scenario. If you died tomorrow, how would your loved ones fare financially? Life insurance helps make sure that the people you care about will be provided for financially, even if you're not there to care for them yourself.
Most families depend on two incomes to make ends meet. Life insurance makes sure that your plans for the future don't die when you do.
If you are a single parent, you're the caregiver, breadwinner, cook, chauffeur, and so much more. With so many responsibilities you need to make sure you have enough life insurance to safeguard your children's financial future.
If you're a stay at home parent and don't earn a salary, that doesn't mean you don't make a financial contribution to your family. Childcare, transportation, cleaning, cooking and other household activities are all important tasks, that have the estimated value of these services at over $40,000 per year.
As the years go by, you may feel your need for life insurance has passed. But just because your children are through college and the mortgage is paid off, doesn't necessarily mean that Social Security and your savings will take care of whatever may lie ahead.
Most single people think they don't need life insurance because no one depends on them financially. Some single people provide financial support for aging parents or siblings. Others may be carrying significant debt that they wouldn't want to pass on to family members.
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