We’ve all heard about the importance of having life insurance, but is it really necessary? Usually, the answer is “yes,” but it depends on your specific situation. If you have a family who relies on your income, then it is imperative to have life insurance protection. If you’re single and have no children and have no major assets to protect, then you probably don’t need it.
In the event of your untimely death, your family can use funds from a life insurance policy for funeral and burial expenses, probate, estate taxes, day care, and any number of everyday expenses. Funds can be used to pay for your children’s college education and take care of debts or a mortgage that hasn’t been paid off. Life insurance funds can be used to give your spouse additional income, when you pass, as well as adding to their retirement savings.
If your dependents will not require the proceeds from a life insurance policy for these types of expenses, you may wish to name a favorite charity as the beneficiary of your policy. (have you even wondered why churches, colleges, hospital have someone’s name on them??? (IE... Walter Douglas Memorial Hall).