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Life insurance is a crucial part of any person’s life. I’ve said this before several times in my previous blogs. However, regardless of how important it truly is, no one really seems to have a great grasp on what it even is or when you should purchase it. With that being said, I figured I would answer a few of the most frequently asked questions surrounding life insurance.


What is life insurance?

This is quite possibly the most common question surrounding life insurance. People don’t seem to understand what life insurance actually is. Another common mistake I see often is that people confuse health insurance with life insurance. They are two very different concepts. So, what is life insurance? In short, life insurance is an insurance policy that you can take out on someone’s life so that if and when said person dies, you can be compensated.


Why do you need life insurance?

Many people need life insurance for many different reasons. It is an important aspect of planning for your future. You may not want to discuss death or the morality of your family members, but it is a necessary conversation that must take place to protect your future. If your significant other is the main income earner and he or she suddenly passes away, you may need to ensure that you will have enough money to provide for yourself until you can get a job. Or you could use some of the reimbursement to pay for the funeral. It can also be used to ensure that your dependents are not left to deal with any outstanding debt you may have accrued during your life.


When do you need life insurance?

Another common misconception surrounding life insurance is that it is not necessary until after retirement or that it is for “older people.” This is absolutely untrue. You are never too young to purchase a life insurance policy. In fact, the earlier you purchase a life insurance policy, the better. Life insurance policies can be cheaper when you are younger, given the lower health risks.


This is an oversimplification of life insurance, but it answers a few of the most basic questions. For more information on life insurance, visit your nearest life insurance agent.