Life insurance serves as a financial safety net for your loved ones, providing a tax-free death benefit to help cover expenses and maintain their quality of life after you are gone. The need for life insurance is particularly important if others depend on your income, such as a spouse, children, or a partner.
Reasons to have life insurance

1. Protect dependents and replace lost income
If your family relies on your income, life insurance can replace that lost income to ensure they can continue to cover daily expenses like housing, food, and utilities.

2. Pay off debts
A life insurance payout can be used to settle major outstanding debts, such as a mortgage, car loans, or credit card debt, preventing these burdens from falling on your family.

3. Cover final expenses
Life insurance can pay for end-of-life costs, including funeral or cremation costs, medical bills not covered by health insurance, and other estate settlement costs. This prevents your loved ones from facing unexpected financial strain while they are grieving.

4. Fund a child's education
The death benefit can be used to finance a child's education, ensuring that their future opportunities are not jeopardized by your passing.

5. Provide for a stay-at-home spouse or partner
Even if a spouse or partner does not earn a salary, their services have economic value. A life insurance policy can cover the costs of services they provide, such as childcare and household management, if they were to pass away.

6. Leave an inheritance
Life insurance can serve as a simple and effective way to leave a financial legacy for your loved ones, even if you don't have other significant assets.

7. Use as a financial tool
Certain types of permanent life insurance, such as whole life, can build cash value over time. This cash value is a financial asset that you can access during your lifetime for things like unexpected expenses or to supplement your retirement income.

8. Supplement retirement savings
For some, permanent life insurance can be part of a long-term financial strategy to accumulate wealth and supplement retirement income.

9. Manage estate planning and taxes
The generally tax-free death benefit can help beneficiaries cover estate taxes and other costs, ensuring your assets are passed on according to your wishes. It can also be used to make charitable contributions.

Do you need life insurance?
While not everyone needs a policy, you should consider one if others depend on you financially. Life insurance is generally a wise choice if you have:
A spouse or domestic partner
Children or other dependents
A business with a co-owner