Many people talk about life insurance and why it's important, but there are still many misunderstandings regarding insurance policies. Many people aren't sure if they need life, and if they do- how much insurance is necessary? What kind of insurance?
First of all, most people believe insurance is taken out to pay for the burial expenses of the policyholder. And while this may be part of the reason people obtain life; this is not what the insurance coverage is intended for! insurance is meant to replace the income that is lost by the policyholder's death, and to be used to pay for the needs of the deceased policyholder when you are no longer earning money to do so. If you have children or relatives who depend on your income, then you should have life.
