Do You Really Need Life Insurance?
When the stock market began going through its challenging times, many of us put our heads in the sand. We now understand the importance of getting back into the market. There is another financial area that is often neglected but just as important - life insurance. Today, we will consider the benefits that life insurance can offer us at different stages of our lives.Single adultsFor the most part, single adults do not need to have large life insurance policies. The biggest concern is making sure that final expenses are covered so that surviving family members do not have to struggle to cover the costs.
There may also be some outstanding debts. Usually, smaller debts are eventually written off by the creditors, but any debts that were borrowed with a co-signer will still need to be paid. Since co-signers are still responsible for the entire remaining balance, life insurance proceeds can relieve the co-signer of some of that burden.
Some single adults may also consider leaving a financial legacy with a favorite charitable organization. For the cost of the monthly life insurance premiums, life insurance can help individuals to provide a sizable donation to help further the cause of a charitable organization.
If a single adult is also a single parent, the support and care of the minor children will be very important. Life insurance proceeds can help the designated guardian to continue to provide for the children in the manner that the children's parent intended.
Married adults
Married adults have many of the same financial concerns as the single adult. Life insurance proceeds can also enable the survivors of married adults to cover final expenses. In this stage of life, there is a surviving spouse who will still be responsible for the debts. Married adults may also desire to leave a donation to family or to a nonprofit charitable organization.
However, there may also be a family who will struggle with the loss of income. Families generally benefit from income replacement for at least a few years, if not longer. This income enables the family to continue to cover the mortgage or rent payment, general living expenses, and even help with the children's educational expenses.
If the married adult was a stay-at-home parent, there may not be a loss of income, but the family may still
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