Quick Insurance Blog

Save Money On Auto, Life, Home and Health Insurance

Quick Insurance Blog header image 2

Who Needs Life Insurance?

June 9th, 2008 · 25 Comments

One of the most common questions people have about life insurance is: ‘who needs it’? The answer of course will depend on who you ask. Ask someone from the life insurance industry and they will probably tell you that everyone should get some.

At the other extreme, some people just don’t believe in getting any form of coverage whatsoever. I think that neither of these extreme views are very helpful. Instead, like many things in life, the answer lies somewhere in the middle.

For some people having life insurance is vitally important. If you are the sole earner in your family and you have young dependents you need to have life insurance. For example, if you have a family of four with the father working full time and the mom staying at home with the kids, the father should definitely have proper coverage.

Moreover, in the example above the mother should probably also have some coverage since she is also performing very valuable work at home by taking care of the kids. However, the amount would not need to be so much because it does not have to replace lost income. Yet, it should still be enough to cover the costs associated with taking care of the kids.

At the other end of the spectrum, someone who is single and has no dependents does not really need to have much if any coverage. Since no one relies on them for their income they don’t have to worry about their death being a financial burden on anyone else. The only possible cost would be that of funeral so they may want to have enough coverage for that but that’s about it.

Finally, people with adult children who no longer depend on them should look at if they need to maintain as much coverage as they currently do. If there is a big disparity between the incomes of both spouses some coverage is probably still necessary, but it does not have to be as much as when the children were fully dependent on them.

Now, the next question is how much life insurance coverage do I need? Unfortunately, that will have to be answered another time. But in the mean time feel free to get a free quote or two to find out how much different options would cost you.

State:

Share This Post:
  • Digg
  • Reddit
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Technorati
  • Yahoo! Buzz
  • NewsVine
  • Propeller
  • email
  • TwitThis

Tags: Life Insurance

25 responses so far ↓

Leave a Comment