The answer to the question "Do I need life insurance?" will be different for everyone. Whether a person needs life insurance depends on his/her financial goals. If any of the following scenarios fit your clients' situation, they would probably need it.
If their partner lives off their income
Whether or not they have children, the spouse could be left without income if he/she lives off your client’s salary. As such, they may want to evaluate their expenses if they passed away, and determine whether their spouse could start working or not.
If they have young children
With higher inflation rates, the average cost of raising a child from birth to age 17 has risen to $310,000 according to a Brookings study. If your clients have children who need food, shelter, clothing and education after they pass, they may want to consider purchasing life insurance.
If they contribute to their family’s mortgage or college expenses
If your client and their spouse have a mortgage or are paying for large expenses such as children’s college, they may want to take out a life insurance policy that can shelter their loved ones financially in case they pass away.
If their family would have a difficult time paying for their funeral
Surprising to most people, the median cost of a funeral in the United States is $7,848. Many families don’t have this kind of money lying around. If your clients think their family might have a hard time paying funeral expenses when they pass away, they may want to purchase a life insurance policy so that loved ones can focus on grieving rather than finances when the time comes.
If they would leave their heirs debt
If your clients have debts, these could pass to their spouse or any joint account holders when they die. Taking out a life insurance policy could financially protect their loved ones from becoming responsible for paying their remaining debts off.
If they have business partners who might fail without them
If your clients have a business with employees that count on their paychecks, or business partners who would fail without them, they may want to factor them into their life insurance policy.
If they have an adult special needs dependent who they care for financially
Some parents care for their special needs child financially for the rest of their lives. If this describes your clients, a life insurance policy could help ensure their child has the financial resources they need when they pass.
This is an abridged version of an article by Lizzie Nealon which appeared on Bankrate.