Most people think that life insurance is simply for the wealthy.  That couldn’t be further from the truth; in fact, life insurance is more crucial for lower and middle-income workers. Unfortunately, without enough life insurance, your family could be put in an extremely tough financial position if anything happens to you.  By purchasing too much life insurance, you could be spending too much now, and cause hardships, when you are no longer around. True money will not replace you when you are gone but it will definitely help ease the pain and help your loved ones to get back on their feet.

Single Without Children

If you’re single without children, you may not need insurance at all.  When you’ve died, it’s likely that no one else is reliant upon your income for food, clothing, and shelter.  If you can afford a small policy, you may want to carry enough insurance to cover any outstanding debts that you may have and cover the total costs of your funeral and final wishes.

If You Have Dependents

When you have a family, life insurance becomes one of the most important financial bases to cover.  If you were to pass away, not only will your family be in emotionally turmoil with your passing, but possibly financially.  Your spouse may not have the income to cover the loss of your income.  It’s important to consider the following factors when purchasing a life insurance policy for your family:

  • The cost of your funeral and final expenses.
  • How much annual salary would be required to meet your current expenses for the estimated remainder of your life? 
  • The effect of inflation on your family.
  • Charitable intentions.
  • The cost of your children’s education and other expenses.
  • Any outstanding debts you may have (mortgage, car payments, credit cards, etc.)


When it comes to choosing an amount of insurance that’s best for you, there is no wrong answer.  An insurance policy may act simply as a way to pay for your final expenses, or care for your family over the remainder of their lives.  The amount of insurance that you choose is deeply dependent upon these values. 

Types of Life Insurance

Life insurance can be extremely complicated, and there are a wide variety of choices available to you:

  • Whole Life – this is a cash insurance policy that can be completely paid up.
  • Term Life Insurance – this is paid monthly, and does not accumulate an underlying value.  Term is often the most affordable option.
  • Variable Life – Variable life insurance policies have an underlying cash or stock value that is attached to various investment vehicles.  Often, these policies can generate enough in dividends to pay the monthly premium. 

Please consult with a financial advisor to determine the appropriate type and amount of insurance is best for you.  Remember, life is fragile, but your family’s future doesn’t have to hinge on that.

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