Do You Need Life Insurance?

If you were to die prematurely, would anyone's life be dramatically changed financially? This is a simple question. If the answer is yes, congratulations, you need life insurance! If you answered yes, and you are researching and taking action to purchase a life insurance program, congratulations, you are a responsible adult.

So, how do you find a good program, with all of the programs out there? Well, like Suze Orman and Dave Ramsey, I advocate only term life insurance. And by the way, not all term is the same.  Do some research so you don't get stuck with a bad program.  Check out this clip on You Tube to see how fired up Suze gets about the whole life insurance industry.



Here are three possible scenarios:

1.  Now, let me clarify this a little.  If you are a student and have student loans, where a burden like 100K might fall onto your parents if you were to die prematurely, it might be good to get some coverage.  Of course this depends on how well off your parents are.  If they are multi millionaires, would 100K hurt them and have a dramatic impact financially?

2.  Now, suppose you have a business partner and you have invested hundreds of thousands of dollars into the partner based on a huge profit potential.  Well, then, you may want to insure the partner and your investment in the partner with some cheap term insurance.

3.  The biggest, reason, however, would be if you are married and have small children that depend on you, you need life insurance.  The reason is because the family is very likely to be destroyed emotionally and you have a responsibility to protect them financially.

In my family, this dramatic devastation happend to both my grand mothers and one of my first cousins who is absolutely amazing.  It happens and we need to think about it folks!

Read more about the difference between term and whole life insurance here.

This post was reposted from http://finlit.biz/life-insurance/do-you-need-life-insurance/, originally written on January 25th, 2013.