Do I Need Life Insurance? - Answering A Frequently Asked Question

Author: Nona Bowen

While life insurance is rarely something that people think about, having it will give you the peace of mind you need to never think about it. Right now in America, most people are living at their financial limit. Most carry a significant balance on their credit card and have little savings to cover any real emergency. For this reason and many others, you should consider the purchase of life insurance a high priority.
If you fall into the category described above, a life policy should be a priority for you. If something should happen to you or your spouse, and you are already at your financial limit, it is unlikely that your household will be able to sustain itself without the influx of cash that a life policy provides. If you have children, this situation could be disastrous. Unless you already have a healthy nest egg, you or your surviving spouse and your children would be put in a critical financial situation without the payout from a life policy. Your children and your spouse can be provided for with a simple monthly commitment that costs around the same amount as your cell phone plan.

Another situation where life insurance is essential is in the case of large property owners. If you are only able to sustain payments on your property, your heirs would be unable to continue to pay taxes and make payments without the influx of cash that life insurance would provide. If your family lost your earning power, would they be able to keep up with property taxes and payments?
Perhaps a periphery for many people, pets are often the beneficiary of life insurance policies. Many people just figure they can leave their pets to family members, but pets do carry a significant financial burden. Some estimates put the cost of owning a dog at over eleven thousand dollars throughout the life of the dog. Can the people you are leaving your pets to afford that kind of financial obligation? If not, you should consider a small life insurance policy.

Do you have debts? Sometimes people have a significant debt in the form of a mortgage or other obligation that could be transmitted to their heirs. Rather than passing on a debt to your loved ones, you can buy a life policy to cover the costs of debts you have so that your heirs are not burdened by any of your financial obligations.

One of the most common reasons for people to purchase life insurance is to cover the costs of a funeral. By some estimates, the average funeral costs around thirteen thousand dollars. Of course, you can have a funeral for less than that, but any immediate cost in the realm of a few thousand dollars is difficult to deal with for surviving family members. By having a life insurance policy to cover the costs of a funeral, you avoid leaving your family a financial burden in a situation already filled with grief.
These are just a few of the reasons you should purchase life insurance. All things considered, it is a solid investment in providing for your family.

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