Question

What is the purpose of life​ insurance? do you think everyone needs life​ insurance? explain?

Answer 1

The purpose of life insurance is to create an estate with a lump some of money when it is needed. Life insurance death benefits provide tax free money to be used after a family member or business owner dies.

Not everyone needs life insurance because not everyone has liabilities at death. In other words, life insurance is primarily used to pay off debts when someone passes away. If an individual has no debts or expenses, then they would not need to have life insurance.

Answer 2

The purpose of life insurance is to deter some of the costs associated with debt and death. For example, someone may die with 20,000 dollars in credit card debt. On top of that, the cost of funeral and other death related expenses may be 15,000 dollars. So this persons family may be left to come up with 35,000 dollars in money to cover the deads expenses. Most people cannot afford this. This is the value of life insurance. I do feel like everyone should have life insurance, but most people think they cannot afford it.