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Who Should Buy Life Insurance?

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Some people may wonder, why buy life insurance? After all, it may seem as though it is a strange financial decision to pay money each month in order to receive cash after you die. However, it is essential for people in many situations to buy life insurance in order to protect their families.

Who Should Buy Life Insurance

Anyone who has dependents of any sort, or who may potentially have dependents of any sort, should buy a life insurance policy. dependents are people who count on you to do anything for them that has value.

Many people believe that buying life insurance is only important if you are financially supporting someone else. For example, if you have a spouse, parents, siblings or other relatives who depend on your income to survive, it often seems like common sense to buy life insurance. These relatives will lose your income if you die, and life insurance can protect them so they can maintain their standard of living.

However, people often forget that those who do not produce income often still provide valuable services that have a monetary price. For example, life insurance should also be purchased on stay-at-home parents who are caring for children, or any people who are not working because they are caring for a parent or a relative. If the person providing primary care for a child, elderly person or ill person dies, someone else will need to step in to provide that care. Whoever steps in to fill the shoes of the deceased caregiver will likely expect some type of payment.

Purpose of Life Insurance

Life insurance is designed to ensure that survivors can continue to live in a similar way to the manner in which they were living before a death occurred. Therefore, the amount of life insurance you purchase should be sufficient to support your dependents in the style in which they are currently living.

If you have a mortgage on a home, for example, you may want to ensure that your life insurance policy is high enough to pay off the mortgage on the home and still provide income to your spouse or other relatives so that they can buy food, groceries and other such items for as long as they need to.

Typically, the more money you make or the more people you have depending on your income, the more life insurance you should purchase. This way, when you buy life insurance, you can be certain your family will not suffer a financial loss as well as a devastating emotion loss should the unexpected occur.

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