If you fall into any of the following categories, you may want to consider purchasing a life insurance policy:
- Breadwinners. In the event of your death, your loved ones will be able to afford living expenses, tuition, debts, and other costs that were supported by your income.
- Homeowners. A life insurance policy can help cover the cost of a mortgage if you purchase a home. Additionally, it will provide support to co-signers in the event of your death.
- You’re married. In the case of a marriage or domestic partnership, life insurance ensures the well-being of your loved one. It can also help replace lost income and cover expenses like credit card debt, car loans, and rent. As a result, you can leave your partner financially secure.
- Parents. The responsibility of raising children falls to you regardless if you work or stay home. Single parents can benefit from life insurance especially if they are unmarried and unable to provide financial support for their children. It can also cover the costs of living, education, and more.
- Individuals with debt. When you carry debt, you should consider getting life insurance, even if you’re single without children. Depending on the severity of your student loan, your family may not be able to discharge student loans in the event of bankruptcy or death.
- You’re single. You can also use life insurance to provide a safety net for anyone who relies on you, such as aging parents or siblings. If you buy life insurance while you’re young, there is no need to pay more for it when you need it because of your age.
- You want to cover end-of-life expenses. If you have a small life insurance policy, you can cover your funeral and final expenses so that your family is not left with that financial strain.
- Business owners. Your business can also be protected by life insurance. You can use your policy to pay off business debts or to help the company stay afloat until they learn how to operate without you.