Just about everyone needs it, but there some important decisions to be made. Life insurance is a complex and often misunderstood financial vehicle. In order to make an informed decision about the type and amount of life insurance to purchase, the insured's personal and financial goals, available resources, and tolerance for risk should be evaluated. Creating a legacy for a favorite charitable organization could be the primary reason for purchasing life insurance.
Insurance can be a means of creating family wealth.
Life insurance receives tax-favored treatment in the buildup and distribution of accumulated cash value. A reassessment of insurance coverage would be prudent following events such as a marriage, birth of a child, changes in children's needs, and growth in personal wealth. Of these three methods, the needs approach is the most accurate for determining the amount of insurance needed to provide for future financial requirements. Term insurance is generally most appropriate for specific short-term needs. There are a several term insurance products available.