Almost everyone has a need for life insurance, although for varied reasons. It is one way of preparing for any eventuality that is bound to happen, specifically death. Life insurance also facilitates planning of a person’s finances and any person who has an income should get it.

A married couple with young children stands to benefit the most from a life insurance policy. This is a classic high-need situation since basically everyone is dependent on one bread winner for total support. Even the demise of a non-earning spouse would require preparations to pay for child care which is a truly expensive proposition. The proceeds can be used for education costs, child-rearing expenses, funeral expenses, medical bills, outstanding debts and mortgage payments.

Married couples with no children will benefit from buying a modest amount of life insurance to protect the other. Although it can be presumed that the death of one will not be financially catastrophic especially if the surviving spouse has his/her own income, the situation can still cause a strain. There might be some mortgage or rent payments that can be difficult to make on a single income or big credit card debts that have to be settled. It is highly possible also that no money has been set aside for funeral expenses.

Single persons can buy a policy at a very low rate especially while they are still young. Those with no dependents can benefit from the proceeds to answer for funeral expenses, medical bills and outstanding debts. Those with dependents including children and elderly parents can guarantee that these dependents would have some financial assistance at least to tide them over until a more permanent means can be achieved.

Older couples with grown children who are financially independent can buy a life insurance policy to provide for funeral expenses, medical bills, impact on spendable income, outstanding debts for a new home, second vacation home or recreational vehicle and the impact on assets that are intended to be passed on to the children or grand children. Theoretically, a person’s need for life insurance declines through age since there are fewer people that remain dependent on his/her income. However, this may not be the case for those who want to protect a business entity or pay estate taxes for heirs. When the purpose of buying life insurance is to pay estate taxes, the coverage should be guaranteed for the remainder of a person’s life as well as his/her spouse.