Who Should Get Life Insurance?

Purchasing a life insurance policy can help protect your loved ones financially in the event that you pass away and are no longer able to provide for them. If you have financial responsibilities and are wondering whether or not you should purchase life insurance, review the helpful guide below.

Deciding on a Life Insurance Policy

Whether you have children who depend on you financially or are the caretaker of an older parent, a life insurance policy can help ensure they are financially cared for if you pass away unexpectedly.When deciding if you should purchase a life insurance policy, consider whether any of the following applies to you:

Your spouse depends on your income
The well-being of your family would be negatively affected if your income disappeared
Other family members depend upon you financially
You’ve accrued a large amount of personal debt
You want to invest in an education fund for your children
You have a mortgage
You own a business
You’re in the midst of planning your estate

If you answered yes to any of the items on this checklist, you might want to consider purchasing a life insurance policy.

Types of Policies

There are two main types of life insurance: term life and permanent life.

Term life insurance policies provide coverage for a predetermined amount of time (usually up to 30 years). If you die while the policy is in effect, you're beneficiaries will receive a death benefit. If you outlive the term of your policy, your beneficiary will not receive a payout.
Permanent life insurance policies provide coverage for your entire life, as long as your premiums are paid. Permanent life insurance policies also accrue cash value that serves as an investment component.