Married Couples

• Married couples may want to purchase life insurance to help cover the cost of mortgage payments or other expenses should something happen to the family breadwinner. Many families rely on two incomes to get by; If one partner becomes severely injured or dies, it may become impossible for the other person to keep making mortgage payments without that additional income. Non-working spouses may have no income at all after the family earner passes away and may need to rely on life insurance benefits while preparing to enter the workforce.
  
  

Parents

• Parents should have life insurance to protect their children from financial instability should they die prematurely. In a two-parent household, life insurance benefits can buy a non-working parent time to prepare for entering the workforce or delay entry to remain home with young children. In a single-parent household, life insurance benefits can ensure that your children have money needed to purchase a college education, if desired.
  
  

Grown Children

• Life insurance also makes sense for individuals whose parents are still alive and depend on them for financial support. As life expectancy increases, parents may rely on adult children for financial assistance with housing, assisted living, companion care or basic costs for food and medicine. Life insurance benefits can cover these costs should you pass away and be unable to care for parents.
  
  

Small Business Owner

• Small business owners should have life insurance to protect the company should something happen to you. Life insurance benefits can fund a "buy-sell" agreement made between business partners so that the existing owner can buy a deceased partner's share; this way, the business can continue operating and the deceased partner's beneficiaries receive money from the sale.
  
  

Special Circumstances

• If you are single and without financial dependents, it may still make sense to purchase life insurance under special circumstances. Divorced couples may have legal contracts requiring life insurance policies in place to benefit ex-spouses or children from the marriage. If you've co-signed on a mortgage, life insurance benefits can cover the cost of the financial responsibility involved after your death. Some individuals choose to purchase life insurance to cover debts, such as remaining student loans, for example, to avoid burdening family members with the responsibility. Others may want to purchase life insurance to leave a beloved friend, family member or nonprofit organization with an inheritance or legacy gift.