One of the most common questions asked about life insurance is “who needs life insurance?” The answer is actually more complicated than you may think. There are many factors that will go into determining whether it would be a good financial move to obtain a life insurance policy. Most insurance companies have a wide variety of different life insurance policies available and using an insurance comparison website like InsureChance will allow you to view many of them at a glance. Here are some of the groups that would benefit from having a life insurance policy covering them.
Married Couples
Every married couple should have some type of life insurance policy covering them. If both parties work outside the home, the life insurance policy should be used to replace employment income so that the surviving spouse can maintain the same standard of living without financial hardship. If only one spouse works outside the home, they should definitely be covered by life insurance because the loss of their income would be devastating to their family. The spouse that stays at home should also be covered so that the costs of childcare and other expenses for things that the stay at home spouse took care of can be paid without placing the entire burden on the shoulders of the surviving spouse.
Homeowners
It is important for homeowners to have life insurance so that their home will not revert to bank ownership if they were to die before the mortgage on the home is paid off. The beneficiary of the life insurance policy can use the proceeds of the policy to pay off the rest of the mortgage and retain possession of the home. Having this type of life insurance can help keep your home in the family. Mortgage life insurance can be an option for homeowners who are denied regular life insurance for medical reasons.
Business Owners
It is also important for small business owners to purchase life insurance. A life insurance policy can ensure your company remains in business after your death and provide for your employees in the event that the unthinkable happens. The last thing that you want to do is leave several families in dire financial circumstances due to your unexpected death. Check out several different types of life insurance policies to see which ones fits the needs of your small business the best.
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.