Carrying life insurance is incredibly important. There are too many people who put of getting life insurance because they think that it doesn't apply to them or that they can't afford it. In all reality you can't afford NOT to have it, and every adult should be carrying it. Here are some things you should know.
I Don't Have Dependents, Do I Still Need Life Insurance?
One common question that people have is if they need life insurance even if they don't have dependents. Yes, if you have a spouse and children life insurance is vital, but that is not the only reason to carry it. First, you need to understand all of the things that life insurance covers. When you pass away your debts will not always die with you, in some cases they will be forgiven, but in other cases they will be passed on to your spouse or family members. This means that your death will not only bring emotional pain to your loved ones, but also financial obligations. This is one reason why life insurance is so important, it will help to cover your debts. This will include any kind of medical debts that you incurred with your death. Additionally, life insurance will help to cover the funeral. Funerals can be very expensive. It is not unusual for it to cost thousands of dollars for your family to simply bury you, not including a memorial service. Your life insurance policy will allow your loved ones to give you a proper burial and memorial service without worrying about money. As you can see life insurance is for every adult.
How Much Life Insurance Should I Get?
Another common question is knowing how much life insurance to purchase. This depends on the individual. First, you need to think about your dependents if you have any, and your spouse. Will they need help financially after you pass away? Will it take time for your spouse to enter, or re-enter the workforce while they grieve? Do you have a young family that will need more financial assistance? How much debt do you have? All of these questions will determine how much you will need to purchase. Some people, including single adults, or elderly people who have already raised their families, will be fine with $50,000 or less. But others will need hundreds of thousands of dollars in their policy.
By considering these questions you can determine how much life insurance you need.