Why does someone need life insurance?

As opposed to insurance policies which protect you and your property, life insurance is designed to safeguard the people who would be financially impacted in the event of your demise or should you become gravely ill.

Beneficiaries can use the death benefit to take the place of your salary, pay for expenses such as day care and tuition, and pay off a mortgage, car loan, or other debts. In addition, people often buy life insurance to help pay expenses at the time of death, such as estate taxes, burial costs, and medical bills.

A good number of mortgage lenders also require individuals purchase life insurance so that they have the security of knowing the mortgage will be recouped even in the instance that you die before the end of the loan period.



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