Life insurance can fulfill a broad array of requirements, such as covering up the finite years of your mortgage or meeting the expenses of your children and spouse who require financial aid when you are gone.

Approximately 63 percent of Americans regard life insurance as an absolute necessity, while 30 percent think that they aren’t adequately covered. Unfortunately, 43 percent of Americans have no life insurance coverage at all, according to recent statistics.

Here’s a guide that will evaluate your situation, helping you determine whether you need life insurance. We’ve also explained which type would suit you best.

Breadwinner Of The Family:

Non-Working Parents: If you do not have any monthly income but execute daily chores, life insurance will cover the expenses for the services which you provide for free. This may include child care, cooking, performing household tasks, running errands and so on. You can choose term insurance cover for covering the years till your kids become self-reliant.

Divorced Or Separated Parent: Investing in life insurance can offer support on payments made by the divorced parent. The term life insurance can provide coverage for the years of support payments.

Parent Of A Child With Special Needs: Life insurance can give you the assurance that your child won’t face financial trouble when you aren’t around anymore. In this case, permanent life insurance can offer the payout regardless of when you die.

A Homeowner With The Burden Of Mortgage: By investing in life insurance, you ensure that your mortgage is paid off. This will prevent your family from having to move after your death. You can buy term life insurance, keeping in mind the remaining years of mortgage payments.

Individual With Cosigned Debt: If you are paying for a student loan or a credit card, life insurance would also cover for your debt. Here as well, the term life insurance can be chosen to end with your debt.

People With A High Net Worth: You will need life insurance to providing funds to your heirs for paying inheritance and estate taxes. Opt for permanent life insurance if you have concerns regarding property revenues.

Business Owner: Life insurance can also pay for your business debt upon your death. It may also fund a buy-sell agreement so that a business partner can buy your shares. You can choose any of the options on the basis of your unique situation.

This guide, and a clear idea of your financial condition, will help you select the best option when it comes to life insurance.