How do I know if I need life insurance?

The main reason to buy life insurance is to help replace your income and provide financial security for your dependents. you are the primary earner in your household and people depend on your income, life insurance can help replace that income if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, disabled relatives, siblings or adult children who continue to rely on you financially. However, many financial experts consider a life insurance policy to be the cornerstone of sound financial planning. A solid life insurance policy can be used to: Create an inheritance for your heirs by naming them as your beneficiaries. Pay federal and state inheritance and estate taxes. Life insurance benefits can pay estate taxes and settlement costs so that your heirs will not have to liquidate other assets or take a smaller inheritance. Make Create a source of savings. Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner's request