The decision to buy life insurance is an important one. Unfortunately, many people mistakenly believe that they don’t need the coverage. As illustrated below, these policies are appropriate for many different situations. 

Who Needs Life Insurance?

1. People With Dependents

How will your children be financially taken care of after you’re gone? Without life insurance, this responsibility will fall on your spouse. Even if your spouse is employed, going from two incomes to one makes money management much more difficult. If your spouse is a stay-at-home parent, finances can pose a hardship. The right policy can cover your lost salary and minimize disruption in your loved one’s lives. 

2. People With Debt

If someone has co-signed a loan with you, they will be responsible for any remaining debt if you pass before you can pay it back. The proceeds of a life insurance policy will take all or some of this burden off your loved ones, as it will provide funds to manage outstanding loans and other types of shared debt. 

3. People Without Many Assets

Do you want to leave something to your heirs after you’re gone but lack the assets to do so? A life insurance policy can provide that. Permanent policies have an investment component, which accrues money as you continue to pay into the policy. This money can then be distributed to heirs after you’re deceased. 

4. People Who Don’t Want to Burden Their Families

Even if you don’t have a co-signer on debt, keep in mind that expenses for end-of-life medical care and funeral planning will fall on your estate. If your estate lacks the funds, your loved ones may be responsible for these costs. A life insurance policy provides peace of mind at a trying time for your family. 

5. People Who Are Planning for Retirement