A life insurance policy can help your loved ones with expenses in the event of your passing. Consider the expenses that your loved ones may have including burial and funeral expenses, income gaps if you aren’t there to contribute, future college tuition, and mortgage expenses.
If any of your loved ones depend on you financially and you don’t have cash reserves to sustain them in the event of your passing, then the answer is yes.
Term life insurance provides a guaranteed death benefit for a set period of time, usually 10, 20 or 30 years, at a fixed yearly premium. This is the simplest type of life insurance and usually comes at the lowest cost proportioned to the death benefit.
Permanent life insurance, in most cases, provides a death benefit until age 120. This means that your loved ones will most likely collect the death benefit when you pass. There are also types of permanent life insurance policies that can accrue a cash value over time.