Many of us buy life insurance because we want to make sure that our loved ones, especially dependents, remain financially secure after we die. Income replacement is the No. 1 reason people buy life insurance.Non-earning caregivers also have an important - and often overlooked - economic value that should be covered by life insurance.
Life insurance is also purchased by those interested in achieving specific business or estate-transfer goals.
There are many types of life insurance policies depending on your goals, and there are huge price differences among different companies offering identical coverage. Policies are available from hundreds of life insurance companies in the United States. Most financial planners recommend that each family income provider carry no less than 10 times their annual income in life insurance.