Life insurance is one of those topics that can often be taboo. Why? Because nobody likes to talk or think about death but it’s the one thing we can’t avoid. As a result it is very important that we plan for the inevitable by purchasing some form of life insurance. It’s just smart and gives you and your loved ones peace of mind.
Purpose of Life Insurance
The primary purpose of life insurance is for income protection in the case of premature death. If you’re the sole or main provider for your family or someone depends on your income for survival, then you should definitely have insurance. If there is no need for a death benefit there is no need for life insurance. For example, if you are single, have no kids.
The amount needed depends on your living situation as well as other pertinent details…it can get complicated. However, a great way you can ensure that you have the basics covered is by using the DIME method.