Do I need Life Insurance?
Life insurance is an important purchase, and for many people having proper coverage in place is absolutely vital. Even so, it is important to keep in mind that every person’s life insurance needs will vary. While some people will need to purchase a significant amount of life insurance coverage, others may need little or no life insurance coverage. . The amount of life insurance coverage needed – and whether life insurance coverage is needed at all – will depend on a number of factors. It is important for every would be life insurance shopper to consider these factors carefully before purchasing a policy.
It is important for all workers to consider whether or not life insurance is a good idea. . For workers who are supporting a spouse and/or a family chances are that life insurance coverage will be an absolute necessity. The reason for this should be fairly obvious – that family is depending upon the earnings of the worker to sustain their lifestyle, keep food on the table and keep a roof over their heads.
Any disruption to that income stream – no matter what the cause – could be devastating to the family budget. . When you consider the fact that an untimely death would already be causing great hardship, it is easy to see why so many workers choose life insurance to protect their loved ones in their time of need.
Workers with higher incomes will typically require higher life insurance coverage than those making less money, but that is not true in every case. The amount of life insurance needed will depend on a number of factors, including the monthly expenses of the family members, the amount of the outstanding mortgage and any large expenditures planned for the future. It is important to take all these factors into consideration when deciding whether to purchase life insurance. It is also important to consider family needs and lifestyle when determining how much life insurance coverage is needed.
When making the life insurance decision it is also important to consider the age of any dependent family members. Workers with young children may need more life insurance coverage than those whose children are grown and out of the house. Life insurance provides many benefits, but one of the most important is peace of mind. When workers have sufficient life insurance coverage in place they can rest assured, knowing that their children are protected and that their needs will be taken care of even if the worst happens.
It is also a good idea to conduct a periodic review of life insurance needs and life insurance coverage levels. The need for life insurance can change radically over a lifetime, and it is important for every person to ensure that he or she has sufficient life insurance coverage in place. Major life events, such as marriages, divorces or the birth of children should trigger an automatic review of all insurance coverage, including life insurance coverage. Even when there have been no significant changes in lifestyle or family makeup it is important to review life insurance needs from time to time. Simple things like getting a raise or promotion at work can change the amount of life insurance that will be needed to replace the worker’s income, and a periodic review will help to ensure that everything remains on track.