Do I Need Life Insurance?
There are certain types of insurance we all need. Health insurance immediately comes to mind, as do homeowners or renters insurance and auto insurance for those of us who drive. But when it comes to life insurance, the answer isn't always so clear-cut. For example, if you're the sole income earner in your family, it pays to buy life insurance. But what if you're married without children and your spouse has a job, too? In that case, the need for income replacement isn't as great. That's why you'll need to answer one key question to determine whether getting a life insurance policy is a smart financial move.
The purpose of having a life insurance plan is to give your loved ones financial protection in the event that you pass away earlier than expected. Of course, if life insurance were free or incredibly cheap, most of us would get it. But because premiums can be quite hefty, you'll need to figure out whether it really makes sense for you. And the best way to do that is to ask yourself one simple question: Will my death impact anyone else's finances?
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Source: Fool.com
