Life insurance is a necessary part of many financial plans. It provides for your family’s financial well-being in the event that you or another family member is no longer able to provide for them. Although everyone must make his own determination about when he needs to buy life insurance, there are a couple of common situations that many suggest require it.
When one spouse’s income is necessary to maintain their current lifestyle – For some families, this could be a household where both spouses work to maintain their current standard of living. For other families, this is a household where one spouse works and the other cares for the children. In either case, however, the entire family would be disrupted if one or both of the adults were no longer able here to provide for the family.
When there are children in the family – If you have children, you can almost certainly expect that you would want to replace the income your children won’t have if something were to happen to you. You wouldn’t want your surviving spouse to scramble to take care of your children. And, if both parents were to die, you certainly, wouldn’t want your children to be financial orphans.
Likewise, there are also a couple of situations that normally don’t require you to have life insurance.
When you are single and without children – In this case, if you died no one would have to shoulder a financial burden. You might consider a small life insurance policy (these are commonly part of your employer’s benefits package) to help pay for your funeral arrangements. Other than that, you probably don’t need any life insurance.
When you are considering insuring your children – Since children aren’t income-earners in most families, they really don’t need life insurance policies.
When you are a couple that don’t have any large debts – If you don’t have children or any large debts to speak of, many couples don’t need a lot of life insurance. Although one spouse might be emotionally devastated at the loss of the other, financially speaking, he would probably be able to continue to provide for himself.
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