Maybe…maybe not. It all depends on your unique situation. As many as 5000 people a month ask this question in a Google search online. You are not alone.

The simplest way to figure out if you are a candidate for life insurance is to ask yourself the following question: “If I were to die tomorrow, what lives would be affected from my passing?” In other words, who has a legitimate financial interest in your life that in the event of your ultimate demise, their lives would be financially impacted? Such individuals could be any one of the following (or more):

-Your spouse
-Your children
-Your parents
-Your business partner
-A corporation you own (yes, a corporate entity can also have a financial interest in a person)

You are now probably asking, “Just how could someone be financially affected from my demise?” Answer: In a number of ways:

-An outstanding balance on a mortgage, second mortage or car loans
-Burial expenses (they can easily be $10K or more in 2011)
-College tuition
-Lost income for your business (a key person – one who is responsible for a large % of your company’s income, could mean ruin for your business)
-Estate taxes (the estate taxes on a deceased person is around 50%)

Thus, if a loved one or business partner cannot afford to self insure against the debts you owe, or the income that goes away when you pass on, you are a candidate for life insurance. Now the question becomes, can you afford the cost of a life insurance policy? If the answer is yes, you need a life insurance policy.

Your insurance broker can help you determine whether a term life insurance policy or a permanent life insurance policy best suits your needs. Call your broker for more information. The time to consider life insurance is when you’re young and healthy…when it’s the least expensive to purchase it.