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Who needs to buy life insurance?

Life Insurance and Annuities
by Chris Davis
Who needs to buy life insurance?
Who needs to buy life insurance?

Over the past several years, the life insurance industry has taken a bit of a hit in terms of the number of people who are even interested in signing up for such policies. However, the fact of the matter is that the portion of the overall population who would benefit from this kind of coverage is actually growing, particularly as many younger adults begin to start families in numbers not really seen since the baby boom decades ago.

There are many people who can benefit from having life insurance policies in their names, but some groups will find these plans more helpful than others, according to a report from the consumer financial advice site Nerdwallet. Perhaps the most pertinent to those who are least likely to have such coverage is young families, whether that's married couples or couples that have a child. The fact of the matter is that millions of millennials are now approaching the age at which they're getting married and having kids, and that wave of people is only going to continue to grow in the next several years and beyond.

These people would clearly benefit from having life insurance because it provides a financial safety net for their loved ones should they pass away, the report said. This may be especially necessary for those with children, because while it can be difficult for a spouse left behind to manage their own situation financially, those problems are typically going to be exacerbated by having to provide for a child as well.

Who else may need coverage?
Meanwhile, people who own homes, or their own businesses, are likely in the same boat, the report said. Often, people who run their own companies are guilty of not doing enough planning for the far-off future, whether that's to do with what happens when they retire, or pass away. Here, a life policy can be crucial because it helps to keep the business afloat in what could be a time of potentially massive disarray. Meanwhile, this is true, to a lesser extent, for homeowners who want to make sure their loved ones can keep up with mortgage payments and other costs even after they're gone.

The more life insurers can do to connect with consumers who are most in need of such coverage, the better off all involved are likely to be going forward. However, greater efforts will probably have to be undertaken to highlight the importance and value of such coverage to these people.

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