Everyone needs life insurance, if only to pay for final expenses. People with children or family members who are financially dependent on them may need more life insurance than others.
Perhaps the best way to answer the question "Do I need life insurance?" is to ask yourself "Would my family be able to continue on in their current living arrangements without financial burden if I were no longer around?"
If you answered no or even maybe, then you need life insurance.
Life insurance comes in various forms. It is a promise made by an insurance company to pay a death benefit to a beneficiary on the death of the insured, in exchange for premium payments from the policy holder.
Two of the most popular life insurance policy types are term life and whole life.
Term life insurance typically has the lowest out-of-pocket expense. It does not provide permanent coverage but instead provides a death benefit for a specified period of time (the "term").
Whole life insurance is designed for permanent coverage on the life of the insured. With a whole life insurance policy , the premium is guaranteed not to increase and the death benefit is guaranteed for life. It also has a cash value that can be accessed for various needs. Whole life insurance may pay dividends to policyholders. The dividends can be used to purchase additional coverage, reduce the premium, pay back loans or may be received in cash.
Most people ask "What type of life insurance policy would be right for them?"
Answering that question will depend on your financial situation, your needs, goals and your expectations for the future.
Having this discussion with a licensed insurance professional will help determine what type of policy will best fit your needs.
