{"id":214921,"date":"2021-10-26T04:10:00","date_gmt":"2021-10-26T04:10:00","guid":{"rendered":"https:\/\/fidelitylife.com\/?p=214921"},"modified":"2021-10-26T04:10:00","modified_gmt":"2021-10-26T04:10:00","slug":"do-i-need-life-insurance","status":"publish","type":"post","link":"https:\/\/staging03.wordpress.fidelitylife.com\/?p=214921","title":{"rendered":"Do I need life insurance?"},"content":{"rendered":"

\u201cDo I need life insurance?\u201d It\u2019s a question many people ask, especially as they start a family or take on new debt. Ultimately, it\u2019s a personal decision.<\/p>\n

Before making that decision, take a moment to think about your family in the worst-case scenario, where you can\u2019t be there to cover their financial needs. Imagine, just for a moment, what their needs would be in that situation.<\/p>\n

If you\u2019re asking yourself, \u201cShould I get life insurance to protect my family?,\u201d keep reading. Learn about who can benefit from life insurance, which situations make having it helpful, and whether life insurance is the right decision for your needs.<\/p>\n

What is life insurance?<\/h2>\n

Let\u2019s start with the basics: Life insurance is a type of insurance that provides a cash payout called a death benefit at the time of the policyholder\u2019s death, if they die while the policy is in force. That payout goes to a beneficiary, which is a specific person or other entity named to receive the death benefit. The beneficiary can spend the payout on whatever they choose.<\/p>\n

There are two main types of life insurance: term and permanent life. Term life insurance<\/a> is in place for a set number of years. This typically ranges from 10 to 30 years. In contrast, permanent life insurance remains in place throughout your lifetime, providing protection as long as you pay the premiums on that policy.<\/p>\n

Who needs life insurance?<\/h2>\n

So, who needs life insurance and the financial protection it provides? A policy can help support those you leave behind or special causes important to you. Here are some common reasons to buy:<\/p>\n

You\u2019re the Primary Income Provider<\/h3>\n

If you\u2019re the main wage earner in your household, you probably have dependents who rely on you for basic needs. This includes young children under the age of 18, aging parents or relatives, and spouses who are primarily caretakers. In this situation, having life insurance can help ensure they can meet their long-term financial needs, even if you\u2019re not there to bring home a paycheck.<\/p>\n

You\u2019re a Caregiver to Your Family<\/h3>\n

Even if you don\u2019t earn an income, you may still need life insurance. If you stay home to care for young children or other relatives, family members dependent on you for care may face financial hardship if something happens to you. This could include costs to hire childcare, eldercare, or someone to maintain the household.<\/p>\n

You Have Debt<\/strong><\/h3>\n

Life insurance can help pay off your debts after death, alleviating the financial burden those debts may create for your loved ones. For example, if you die suddenly, your spouse may be liable for the remainder of the balance on your mortgage. Buying life insurance to cover your mortgage can minimize the risk of your spouse having to sell your home to cover expenses, especially if they\u2019re suddenly only relying on a single income.<\/p>\n

You Want To Cover Final Expenses<\/h3>\n

For many people, a big reason to purchase life insurance is to cover burial or other financial expenses. This can include costs associated with cemetery or cremation, funeral services, or nursing home or medical expenses.<\/p>\n

You Own a Business<\/h3>\n

Do you need life insurance as a business owner? The answer is often yes. Life insurance can help protect your business<\/a> by paying off existing debt, so it can keep running in your absence. Many business partners opt to purchase life insurance policies on each other to ensure that the business will stay afloat, even if one of the partners passes away. Life insurance can help your partners find others to fill your role so the business can continue on without you, or give them the funds to buy out your share of the company so both your business and your family can stay financially stable.<\/p>\n

When is life insurance helpful?<\/h2>\n

Ask yourself again, \u201cWhy do I need life insurance right now? What can it do for my family and financial goals?\u201d Here\u2019s when it may help:<\/p>\n