Do I Need Life Insurance? A Comprehensive Guide to Who Needs It and What Types to Buy

Life insurance helps protect people that rely on your financial support including your family. The insurance company will pay a sum of cash to the beneficiary listed on your policy in case you die.

Life insurance policies are continually evolving to meet people’s changing needs.

Common questions people like to ask regarding life insurance include “do I need life insurance?” and “how does my family benefit?”

Detailed responses to these questions are discussed below.

Do I Need Life Insurance When I Have No Beneficiaries?

Life insurance can still be useful even when you haven’t included any beneficiaries on your policy. For instance, you’ll get your funeral expenses paid by the insurance company.

Note that the premiums are less expensive when you’re healthier and younger.

The insurance cover will depend on your current situation and age. You may want the cover to provide for your loved ones, protect assets or build wealth. Consider the stage in life you’re in before signing up for any policy.

Life stages may involve attending school, having kids, starting a business, getting married and buying a home.

What Are the Situations That Call for Life Insurance?

Seek help on how to explore life insurance options from a financial advisory company like Carter Insurance & Investments. Financial advisers help you decide on an appropriate cover for your needs.

Here are some of the reasons you may want to get life insurance.

1. You’re Starting a Family

Life insurance is essential for those with young families. You’ll find the rates cheaper when you’re starting your family.

The cover helps guarantee a better life for your kids and spouse in case a tragedy happens to you.

2. You’re a Young and Single Adult

Young and single adults can seek term life insurance to cover for their funeral costs. They get to pay lower rates at a younger age. Furthermore, insurance companies are more likely to approve young applicants than old ones.

3. You Have Mortgages or Other Loans

Mortgage insurance is essential for potential homeowners. A life insurance cover can help settle your remaining mortgage debt and eliminate the need for getting mortgage insurance.

You can use this policy to secure your current debt and prevent your estate from paying them.

4. You’re Married with No Kids

A couple with no kids may get life insurance for their funeral expenses. The cover can help a surviving spouse regain financial stability in case the other spouse dies.

The couple needs to agree on whether their current finances can secure them a better life in the future.

5. You Want to Cover Your Sick Kid

A life insurance policy can be ideal for individuals with terminally-ill kids.

You can get the cover for your children to help them establish themselves once they’re adults.

The insurance plan may help you pay funeral expenses if anything happens to your kid.

Take Charge of Your Life Now

Evaluate your current life goals to answer this question: “do I need life insurance?” Financial advisers can assist you to pick a cost-effective policy if you want one.

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Melissa Thompson

Melissa Thompson writes about a wide range of topics, revealing interesting things we didn’t know before. She is a freelance USA Today producer, and a Technorati contributor.