Do You Need Life Insurance?

Determining The Need For Life Insurance

How do I determine if I need life insurance?

To initially determine if you are a candidate for life insurance, ask yourself the following questions:

Do I have family members who rely on my income? (Consider what would happen to them if you were to suddenly die.)

If I do die suddenly, how much of my income will my family need to replace and for how long?

How much debt do I have that needs to be paid off in the event of my premature death?

How much money should I set aside for my children's college education?

What are my expected estate tax obligations and expenses at my death and my spouse's death?

Do I have a business partner who would rather not be in business with my spouse if I died?

Do I have expected retirement income that may better serve my spouse if I purchase life insurance rather than choosing one of the company's survivorship options?

Do I want to create an estate for my family or equalize my estate for tax purposes?

If any of these questions are applicable to you or your family, you should seek out a life insurance professional and begin educating yourself about the need for life insurance planning. While not everyone needs life insurance, it is surprising how many people do not have enough information about life insurance to make an informed decision as to how it may be useful for them.

"Determining The Need For Life Insurance" is an excerpt from the book 21st Century Wealth, which is published by Quantum Press. The hardcover is available online from both Quantum Press and amazon.com.