People who are considering life insurance usually debate whether they need it or not. If anyone will suffer financially after a person’s death, that person should have life insurance.

This death benefit is meant to help surviving family members or dependents cope with the financial difficulties of losing the deceased’s income and paying for final expenses. Life insurance isn’t subject to federal income tax.

In order to determine how much life coverage to buy, it’s important to consider what surviving loved ones would need if death occurred suddenly. 

Be sure to consider monthly living expenses, debts and final expenses when calculating costs. These are the essentials. 

There are also several more considerations. For example, college money for surviving children is a beneficial addition to a life insurance funding plan. Long-term financial goals, a surviving spouse’s retirement and several other factors must also be considered. 

The type and amount of coverage you need will depend on your life circumstances, like the following:

 

Married Individuals

Many couples who get married don’t think they need to purchase life insurance coverage until they have children. However, it’s important to know that the debts of one spouse must be paid by the surviving spouse in most situations. 

For example, if one of the individuals earns the sole income and has sufficient debt, the surviving spouse with the lesser income would face many serious struggles by inheriting such debt.

 

Parents with young children

Whether parents are single or married, it’s important to have enough life insurance to cover the costs of child care or being caregivers themselves. If one spouse stays at home and cares for the children, it’s important to be sure that they will all have enough money to live on. 

It’s also important to have life insurance for the spouse who stays at home to care for the children. Without that spouse in the picture, the cost of transporting and caring for the children will be an issue. It may also be necessary to pay for housekeeping services. 

Single parents should always make sure that their children will have enough money to survive on. If possible, it’s best to leave extra money to contribute toward their college education.

 

Parents with grown children

It’s best for parents with grown children to make sure they leave enough money that their offspring will be able to pay their final expenses. Married parents with grown children must still consider the needs of their spouses.

 

Single individuals

Although many singles think they don’t need life insurance, this coverage can still be beneficial. Surviving parents, siblings or other relatives or loved ones may benefit from the money. 

Aging parents may need extra money for health care. For example, parents who inherit this benefit may be able to afford a private room instead of a shared room in a nursing home.

There are several reasons for everyone to purchase life insurance. 

Even those who have no family members and few friends still have valuables that are important to them. 

In these cases, it can be satisfying to set up a life insurance benefit amount to go to a preferred charity. 

To learn more about life insurance and what options are best.