Do I need life insurance?
You need life insurance if anyone depends on your income. In such
cases, life insurance solves many personal and business financial
problems.
Personal needs
If you are a young parent, you may need life insurance on your own
life to enable a surviving spouse to raise the children. When you
are older, you may need life insurance if you are financially responsible
for an aging parent or want to provide funds to take care of final
expenses, debts or taxes.
A general rule suggests buying protection equivalent to FIVE TO
EIGHT TIMES YOUR ANNUAL INCOME. Your needs may vary according to
your financial assets and liabilities.
Life insurance can solve your heirs' immediate and long-term needs.
- Immediate needs include: funeral expenses, unpaid medical
bills, debt and taxes. Having money to pay immediate expenses
may give your heirs time to readjust their lives, free from money
pressures.
- Long-term need for the care of dependents, college expenses
and, in general, providing financial resources.
Business needs
Life insurance is often the solution to:
- Replace a key person and provide the funds to cover the costs
of locating and training a replacement.
- Continuation of the business when a proprietor, partner or co-owner
dies.
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Information Institute, Inc. - ALL RIGHTS RESERVED -
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