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Who Needs Life Insurance?

Who Needs Life Insurance?

  • Who doesn’t: If you have no one depending on your income or if you don’t generate a percentage of your family’s income.
  • Who does: If your income is supporting someone, such as your spouse or children.

What Is Life Insurance?

Life insurance provides cash to your family after you pass away; these funds serve as a replacement for the income you would have contributed. It can be essential in allowing your family to continue their lives. Life insurance can also cover medical, legal and funeral costs.

What Types of Life Insurance Are Available?

There are so many choices, but most are variations on two basic types: term insurance and cash-value life insurance. Although both give you a death benefit, there are some key differences between the two:


  • Term is set for a period of time (typically between ten and 30 years).
  • Premiums are low.
  • After the term ends, however, premiums can increase greatly, depending on your age and health.

Cash-value Life

  • Term is set for your entire life.
  • Premiums are higher, but constant.
  • Part of the premium goes towards investments that the insurance company makes for you. If the investments do well, there may be a cash value. That cash value can be borrowed against in the case of an emergency, or to fund other goals (such as education or retirement).

When choosing the right insurance company for you and your family, make sure to not only take into consideration fees and commission, but also things such as rating, record, licensing and complaints before making your decision.

If Life Insurance Is No Longer Needed

If you ever decide you no longer need your insurance, a life settlement contract allows you to sell your policy to a third party in return for cash, a loan or other consideration. Learn more about life settlement contracts