Many question whether life insurance is necessary, and whether the cost is justified. If you have to work to sustain an income, chances are you need term life insurance. Life insurance is required by those who have a desire to provide money to their heirs, but who do not have a substantial estate. The independently wealthy may not require a life insurance policy, however many independently wealthy people do maintain life insurance policies.
"The focus of purchasing a term life insurance policy is to provide a financial benefit to the people you care about after you die. This benefit can be designed to pay debts of the policyholder, funeral expenses, or to simply provide a sum of money to the beneficiary", said Vince Bagni of Paramount Life Insurance, your source for FREE life quotes.
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If your spouse and/or dependents rely on your income, life insurance can be designed to replace that income in the event of your death. This income replacement can be tailored to last for a limited period, which can end when children are mature, or it can be designed to last a spouse for a lifetime.
Funeral costs can be a significant expense to leave your family when you die and life insurance can provide protection for your family members. Leaving your family with the burden of paying for your funeral expenses when you die may become a significant burden if you are the sole wage earner, and if there are little savings to carry the family through after your death.
Joint debt between spouses can be one of the most devastating financial problems after the death of a family’s primary income earner. If the income is cut off, debt payments will not be able to continue which can result in repossession, foreclosure and bankruptcy. Life insurance can ensure that debt payments for joint debts such as mortgages, auto loans or credit cards can continue, or better yet, a life insurance settlement can pay off all existing debts to eliminate the financial risk associated with debt.
There are no legal requirements for life insurance. In many cases, guaranteed issue life insurance quotes are recommended by lenders when giving a loan. These policies are afforded without the need for a medical exam, and dollar for dollar, they are often quite expensive compared to a typical term life insurance policy.
There are no legal requirements that a person obtain life insurance, and there are also no legal obligations for insurance companies to provide coverage, except as outlined by the Civil Rights Act.
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You can inquire with a life insurance broker, a financial advisor or an attorney as to whether life insurance quotes or a policy is necessary. You could also check with your state insurance regulatory body to see if there are any laws that affect the need for life insurance. The best way to find out if you need life insurance is to ask the people who depend on you and your income to sustain their current standard of living. Your opinion on whether you should purchase a life insurance policy matters less than the opinion of your spouse or children regarding this question.