What is life insurance? It is a way to provide income to your dependents if you die prematurely. Do you need life insurance? It depends on your situation. Here are a few examples:
- If it takes two incomes to pay the mortgage and you have kids at home, then you may need life insurance so that the family doesn't have to move should one of the breadwinners die.
- If you are the primary caregiver to dependents, you may need life insurance to ensure the ability to have a paid caregiver.
- If you are single, then you probably don't need life insurance.
- If your spouse has their own income and you have no dependents, then you probably don't need life insurance.
The need for life insurance changes with your life circumstances. Part of planning for the future includes reviewing your insurance policies to ensure that they still meet your needs. The following resources will be helpful in your review.
Life Insurance Center from the Motley Fool has articles on what is it, how much do you need, kinds, and more.
What You Should Know About Buying Life Insurance (pdf) prepared by the American Council of Life Insurers and the Federal Consumer Information Center provides a primer on the types of life insurance and how to buy it.
Money 101: Life Insurance from Money.com. Lesson 20 in the Money 101 series covers the top things to know, buying strategies, how much coverage, and how long a term.
These articles are from SmartMoney.com
- 4 Fast Ways to Save Money Now provides ways to save on your premium and avoid some common pitfalls.
- How Much Life Insurance Do You Need? is a worksheet to help you make sure you have enough but not too much insurance.
©2010, FoolProof Financial Education Systems, Inc. All rights reserved.