Who Should Have Life Insurance?
A life insurance policy pays out a lump sum to your dependents – known as beneficiaries – if you die within the policy period.
Although life insurance policies are open to anyone, there are some people who could benefit from coverage more than others. Give life insurance serious consideration if:
- You are the sole earner in your family. If you die without a life insurance policy in place, your family may be unable to support themselves or pay the household bills.
- You’re married and you have a mortgage. If you don’t have life insurance and die before paying off your mortgage, your spouse becomes responsible for the payments.
- You have children or others who depend on you. When you die, the lump sum from your insurance policy will help your dependents manage financially.
Even if you’re single and have no dependents, it might still be worth exploring life insurance options. If your situation changes (e.g., you have a new addition to the family), you can always increase your level of coverage to reflect your new circumstances.