Do I Need Life Insurance?
Not everyone needs life insurance. Find out whether or not you do.
Life insurance has long been a part of estate planning in the United States. Although life insurance does not need to be a part of every person's estate plan, it can be useful, especially for parents of young children and those who support a spouse or a disabled adult or child.
In addition to helping to support dependents, life insurance can help provide immediate cash at death. Insurance proceeds are a handy source of cash to pay the deceased's debts, funeral expenses, and income or estate taxes.
People who have no minor children or financially strapped dependents may not need life insurance. Below you'll find questions to ask yourself to help evaluate your life insurance needs. If you decide to purchase insurance, you should know exactly why you are buying it and choose the best type of policy for your needs. And, of course, you should buy no more than you need.
Long-Term Needs
To determine whether it makes sense for you to buy insurance to provide financial help for family members over the long term, consider these questions:
How many people depend on your earning capacity? If the answer is "none," you probably don't need life insurance.
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