Life insurance is an important purchase, and one that no one can afford to ignore. If you think you may need life insurance, it is important to research your options and shop around to get the best possible coverage at the lowest possible price. Part of that shopping experience is also determining how much life insurance coverage you need, or if you need life insurance coverage at all. The truth is that not everyone needs life insurance. Determining your insurance needs will help you find the best coverage for your needs.

Do You Have a Family?

One of your most important considerations when shopping for life insurance is determining who you need to protect with that insurance. The purpose of life insurance is to provide income and financial protection to your loved ones in the event of your death, so the first thing you need to determine is who you are trying to protect. If you are married with young children, life insurance is absolutely essential. If you are a single person, or an older individual whose children are grown and on their own, life insurance may not be so important.

Protecting the Family Home

If you have a family, a home and a mortgage, you should also have life insurance coverage. If you were to die and your income stopped, how would your spouse make the monthly house payments? Not having sufficient life insurance coverage could turn your tragic death into a tragic financial situation for your family. You can purchase life insurance designed specifically to pay off your mortgage in the event of your death, and that kind of insurance can be a great deal if all you need to protect is the roof over your family's heads.

College Costs

If you have minor children to protect, it is important to have proper life insurance coverage in place. The cost of raising a child from infancy through adulthood can run into the hundreds of thousands of dollars, and if your income disappeared, your spouse could have a difficult time making ends meet. Paying for college costs is another important consideration and another reason to have life insurance. If you have children at home, it is important to have life insurance coverage that at least pays the cost of college for those kids.

Source:

Life insurance information from CNN