Life insurance can fill a wide variety of needs, includingcovering the finite years of a mortgage andprotecting the interests of a special-needs child who will need financial support after youre gone.
In fact, 63% of Americans consider life insurance a necessity, according to the nonprofit industry group Life Happens. But 30% say they dont have enough coverage, 19% have only group life insurance (the coverage thats available through work and often doesnt provide enough money to meet a familys needs), and 43% have none at all, according to Life Happens and industry group LIMRA.
Heres a guide to who needs life insuranceand what kind of policy likely works best in each situation.
NerdWallets life insurance comparison tool can help you figure out how much coverage you need and compare rates. People who are interested in permanent life insurance should consult a financial advisor to find the right policy type.
Aubrey Cohen is a staff writer at NerdWallet, a personal finance website. Email: firstname.lastname@example.org. Twitter: @aubreycohen.
Image via iStock.
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