Life insurance is necessary, yes or no?

Worded that way, it is tough to answer yes or no. Yes, life insurance is certainly necessary, but no, it is not a morbid concept at all. The purpose of life insurance is to protect the loved ones you may leave behind if you should pass away, and that may seem morbid to some, but death is a fact of life and planning for it depicts you as a responsible person, not someone planning ahead for fatality.

The basic purpose of life insurance is to take the financial strain off your spouse and loved ones. A good permanent life insurance policy will include the financial resources for your family to get by for a period of years after you die, including monthly costs like mortgage and car payments, annual costs such as your insurance, and regular costs such as the groceries, clothing and other daily needs. The idea of leaving behind an inheritance is not the purpose of life insurance, even though it is the way many people see it.

Even a term life insurance policy performs a specific purpose. Some use term policies to pay off the car or mortgage, while others use it to pay for college tuition. Whatever the purpose of your life insurance policy, it is intended to help the living, not to create a benefit from the dead. After all, if you are the primary breadwinner in the family, your loss would create substantial economic concerns. With a life insurance policy, you can take those worries out of the equation and allow your survivors to pick up the pieces a little faster when you are gone.

So, yes, you should be covered by life insurance, even if it is only a final expense policy that covers the cost of your funeral and eternal interment. Doing so does not create any morbid facts, it shows the people you love that you cared enough about them to plan for their future even if you were not able to be there. When you consider where your family would be without your income or the services you provide around the home, a little thing such as a life insurance policy is only a first step in the right direction. Insurance will not solve all of the issues your family faces if you die, but it will at least take the financial pressure off so that they can get down to the business of continuing life without you.