If someone depends on you financially or if someone could be in a worse financial position if you die, you may need life insurance.
Do you need life insurance? The answer really depends on how you define “need.”
You could be required to have life insurance in some situations, like under the terms of a contract or divorce decree. However, in most situations, getting life insurance is more often a question of want rather than need. If this is the case, you can ask yourself: what do I want to see happen financially after my death?
Potential Reasons for Life Insurance
Some common reasons people want to have life insurance include providing funds for:
- Paying off any debts
- Providing financial resources for loved ones
- Funding goals, like education for children
If any or all of these potential reasons apply to your situation, and you don’t have other assets available to fund them, then you may want to purchase life insurance to fund your goals.