Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Why Should I Buy Life Insurance

You should buy life insurance if you want to protect those who are currently dependent upon your salary or performed duties. Many say that purchasing life insurance is one of the first big steps in making a sound financial plan—the cornerstone, if you will.

Get instant online insurance quotes by entering your zip code now!

It is the primary way that you will help take care of your loved ones after you’re gone. The truth is that there are many reasons people use when they purchase life insurance.

Dependents Need Life Insurance

One of the most obvious ones is to help take care of your dependents. If you support people—a spouse, children, dependent parents, and so forth—with your income or daily caretaking functions, then life insurance can help them support themselves if you die.

If you are worried that those you care about may not be able to take care of themselves due to their health, their age, or any other number of factors, purchasing life insurance policies that name them as beneficiaries can help you provide for them when you are gone.

Additionally, it can provide an inheritance of sorts. If you do not have much more to leave your heirs, you know that you are leaving them with something. Beneficiaries do not need to pay taxes on any proceeds they get from life insurance policies. The monies will, however, be subject to estate taxes unless you set up an Irrevocable Life Insurance Trust, or an ILIT.

Compare Insurance Providers Rates to Save Up to 75%

 Secured with SHA-256 Encryption

Final Expenses

Life insurance can also pay such final expenses as:

  • Funeral costs
  • Burial costs
  • Costs associated with estate administration
  • Medical expenses your health insurance will not cover

Without these funds, many families are further distressed in dealing with the financial requirements of those costs. Funds from life insurance policies can also be used to pay federal and state inheritance taxes (or “death taxes”) which can take up to half of your assets. This can be a way to alleviate stress for your family during a terrible time, or can help you keep them from having to liquidate other assets to help pay the taxes. You can help insure they get a larger inheritance.

You can also make charities the beneficiaries of life insurance policies. This allows you to donate larger amounts of money. Even if you sent a check for the same amount as the policy, the charity will get more from the policy itself.

Free Insurance Providers Comparison

Compare Insurance Providers Rates to Save Up to 75%

 Secured with SHA-256 Encryption

Life Insurance as Savings

And, if you are not currently worried about protecting for others after your death, life insurance policies can also help you create a kind of savings for yourself. Whole life insurance policies accrue cash values that the owner can borrow against or withdraw altogether.

Maybe you are trying to figure out an amount that you, yourself, can retire on. Purchasing whole life insurance can end up being a forced savings account, of sorts. And, if you purchase a permanent life insurance policy, there will be an additional cash savings value to the policy.

Frankly, if you don’t have dependents there are other, more lucrative ways, to invest your money. Life insurance is for those you leave behind. Some folks without dependents will carry a life insurance policy simply because they don’t want their parents to have to pay for a funeral in the event of death. This is something you’ll want to consider when you sit down to speak with an insurance agent, or a financial advisor.

If you need to obtain life insurance then the first thing is to determine how much you will need. There are several different calculators out there that will help you determine this. You will want to consider factors such as your (and your spouse’s, should you have one) current salary, what you have in savings, when you plan on retiring, how many children you have and their ages, what inflation will be when you retire, and so on and so forth.

Online tools that will help you calculate what you will need; just as easily, you can find other tools that offer you free quotes from many life insurance companies that will give you an idea how much it will cost you to purchase the amount of life insurance you have just determined you need.

Then you’ll want to figure out what kind of insurance to get—whole or term? Whole life insurance, as stated earlier, has a cash value component to it. Its rate (or premium) does not change as long as you have the policy (which is for life). A term policy is for a set amount of years; after the end of the term, the conditions of the policy can be changed.

The best way to determine all this is to just sit down and spend some time with it. Think about what, or who, you are saving for.

Follow the prompt by entering your zip code above and get life insurance rate quotes now.