Does Everybody Need Life Insurance? 
Life insurance is not for the living , but for those left behind . Only you can answer the question , `` Do I need life insurance ? '' . The most common purpose of life insurance proceeds is to replace lost income of the decedent and pay debts of the estate . But personally owned life insurance is much more . Large estates with complicated and non-liquid assets should consider life insurance to cover estate shrinkage and add liquidity . Larger estates also usually incur tax liabilities that can be paid with life insurance proceeds . Some individuals like to endow charities or educational institutions with life insurance proceeds . One of the most debated life insurance needs is on the life of a child . Many will argue that children do not incur debt nor do they generate income , so there is no need to buy life insurance on a child . As a parent I can think of nothing worse than the loss of a child . Feeling pressure to return to work the day following services because of financial needs would only compound the loss . Parents need time to grieve the loss of a child and do so with dignity . 