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Do You Really Need Life Insurance? (When It Makes Sense—and When It Doesn’t)

Life insurance provides financial protection for loved ones if something happens to you. But not everyone needs it. Understanding when life insurance makes sense can help you avoid unnecessary costs.

Life insurance replaces income, covers debts, pays funeral expenses, and protects dependents. The need varies based on family structure, income, and financial obligations.

Evaluate who depends on your income, your outstanding debts, and long-term financial goals. If no one relies on your income, coverage may be optional.

Situations where life insurance is useful:
• You have children or dependents
• You have a mortgage or large debt
• Your spouse relies on your income
• You want to leave financial support or cover funeral costs

Situations where it may not be necessary:
• You have no dependents
• You’re financially independent
• You already have sufficient assets to cover expenses

Review your policy every 1–3 years or after major life changes—marriage, children, new debts, or income increases.

Life insurance has long been a core financial tool for families needing income protection and estate planning support.

Policies are available nationwide through insurers, brokers, and online platforms.

The decision comes down to who depends on your income and whether your savings would fully cover their needs.

Key Details
• Best for: Parents, homeowners, married couples
• Types: Term life (simple, affordable), Whole life (complex, costly)
• Cost factors: Age, health, coverage size
• Rule: If no dependents → coverage often optional

Life insurance is essential for some and unnecessary for others. Make your decision based on dependents, debts, and long-term responsibilities.

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