Man reviewing his life insurance policy

Who Needs Life Insurance?

Life insurance policies have become cliche within the crime-drama genre on television. Everyone has seen a show in which a victim is killed by someone wishing to collect on a life insurance policy. If you take these shows seriously, you might come to the conclusion that it's safer not to take out a life insurance policy. For many survivors, however, life insurance policies makes life easier. Do you need to consider getting a policy?

Parents with Children Still at Home

Parents with children still living at home are the most obvious group of individuals in need of life insurance. If you suddenly die how will your kids be provided for. A life insurance policy can help a surviving parent raise children, and it can also provide security for children whose parents pass away at the same time.

Couples Without Kids

If you live in a dual-income household, you and your partner need to have life insurance that will cover expenses and lost income in the event of death. When choosing a policy, select a plan that will help pay the mortgage and combine with the remaining partner's income to pay monthly bills. Remember to also calculate funeral expenses into the equation.

Young Singles

Young people tend to avoid thinking about their own demise, but planning ahead can save your family and loved ones a lot of pain and hassle. Most singles should get an insurance policy that will at least cover the costs of funeral and burial. In the event of an untimely death, this helps to take pressure off grieving loved ones. Singles with loans that have been co-signed by others also need to consider this debt when considering life insurance. If you die and leave a debt that your parents or another person has cosigned, that debt reverts to them. A life insurance policy can help you make sure those debts don't become a burden for someone else once you are gone. Young singles also need to consider the future before choosing not to get an insurance policy. While it might not seem important to purchase such a policy today, getting a policy when you are young may be more affordable that purchasing a new policy once you have aged or been diagnosed with an illness.

The Elderly

Elderly people should also have at least a minimum insurance policy. Even those with savings and investments that should pay out to heirs, need to be prepared in the event that healthcare and hospice expenses bleed those resources dry. An insurance plan that covers average funeral expenses will ensure that your heirs aren't put through hardships when it comes time to make final arrangements.

Most adults can benefit from some form of insurance policy. The type of policy that is best for you will depend on your age, income, debt, and number of dependents. Don't risk leaving your loved ones in financial distress after you have gone. Plan for their future well being today.

Last Updated: January 31, 2017