Is Life Insurance Important at all?

 Is Life Insurance Worth It?

Whether or not life insurance is worth the investment depends on several factors, including your finances, end-of-life goals, the needs of your beneficiaries, and the type of policy you choose. If you have loved ones that depend on you for financial stability, a life insurance policy may be well worth the investment. Regardless of which life policy you choose, the death benefit can help your family cover a wide range of costs, including mortgage payments, tuition, and day-to-day expenses.

The death benefit from a life insurance policy can also cover end-of-life expenses, like funeral and burial costs, taxes, and any personal or medical debt that remains after you die. The benefits of a life insurance policy aren’t limited to covering expenses after your death, however. According to the Insurance Information Institute, some types of insurance, like whole and universal life policies, offer a cash value that you can borrow (e.g., a loan) or withdraw from to cover expenses, like college tuition or a new home, before the policyholder dies. As such, a life insurance policy may also supplement your existing savings or retirement account. However, if you’re using the cash value to cover your premiums and the amount isn’t enough to make the payments, you may lapse on your policy.

When Isn’t Life Insurance Worth It?

If you don’t have dependents or your loved ones can cover end-of-life expenses with your existing savings or investments, a life insurance policy may not be necessary.

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