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Life insurance is used to replace in whole or part the economic value of human life for either family purposes or business purposes. In exchange for premium payments, the life insurance company agrees to pay a death benefit upon the death of the insured to the beneficiary named in the application for the policy. Life insurance policies may provide other uses and benefits as well.
Do I need life insurance?
You need life insurance if you want to provide financial protection for your dependents (or to your creditors) in the event of your death.
A business may want to use life insurance to fund its employee benefit plans, protect against the premature death of a key person or to provide for business continuation.
The following are typical examples of family and business purposes to consider when assessing the need for life insurance:
Dependent children.
Dependent spouse,
Parent or grandparent.
Credit enhancement.
Key person indemnification.
Business continuation.
Employee benefit plans.
Should one or more of these examples apply to you, the purchase of life insurance may be suitable for your needs.
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