“Do I need life insurance?” is a common question, especially from younger people. Many don’t see the value in it. It’s probably why 75 percent of young American adults don’t have a life insurance policy.

As it turns out, it’s a good idea for almost anyone to have a life insurance. We’ll discuss why you need a life insurance policy. We’ll also look at some of your options for getting the right policy.

The Answer to “Do I Need Life Insurance” Is Yes

Who needs life insurance? The answer is “everyone.” Life is unpredictable, so you never know what’s going to happen tomorrow.

If you don’t see the value in a life insurance policy immediately, you’re not alone. Many people ask, “Should I buy life insurance?” because they see life insurance policies as nothing more than another expense.

People with this attitude may not know about the different types of life insurance. Most people think of term life insurance, which can expire without ever giving you a benefit. There are other types that you can put to work for you.

When to Have Life Insurance

Another common question people ask is, “When is life insurance necessary?”

There are a few situations where it can be useful. Term life insurance is good for people who have financial debts or responsibilities. If you have a mortgage or a student loan, life insurance could pay them back if the unthinkable happens.

Term life insurance is also a good option for people who have young families. A good policy can help you provide for your children in the event of tragedy.

Other types of life insurance policies can be used a little differently. A whole-life policy, for example, never expires. You can cash it in and use the funds in it for retirement or for investing in your own business.

When to Buy Life Insurance

Now you can see the value of different types of life insurance policies. When should you get life insurance?

The sooner you get life insurance, the less you’ll pay. This is because a younger person is less likely to use the policy than an older person.

If you want to get a whole-life policy, taking one out when you’re younger will give the funds time to build.

Term life policies do expire, but your premiums will be lower if you take a policy out when you’re 25 rather than at 35 or 45.

Choosing a Policy Type

Are you still asking, “Should I get life insurance?” No matter how old you are or what stage of life you’re in, life insurance is valuable.

Now the question is what type of policy you want to buy. As we mentioned, a term life policy is very common for those who have debt or family responsibilities.

If you’re planning for retirement or own your own business, though, a whole-life policy might be a good choice. These policies are usually more expensive than term life insurance though.

There are several different types of policies. If you want to know what might be right for you, this company and others offer insights into policy types.

Learn More About Your Financial Options

Now you know the answer to the question “do I need life insurance?” Most people do need some form of life insurance.

Life insurance is one of the many financial tools you use to protect your future. Take a look at our blog and discover more tips and tricks for protecting your financial health.