You need life insurance if anyone depends on your income. In such cases, life insurance solves many personal and business financial problems.

If you are a young parent, you may need life insurance on your own life to enable a surviving spouse to raise the children. When you are older, you may need life insurance if you are financially responsible for an aging parent or want to provide funds to take care of final expenses, debts or taxes.

A general rule suggests buying protection equivalent to FIVE TO EIGHT TIMES YOUR ANNUAL INCOME. Your needs may vary according to your financial assets and liabilities.

Life insurance can solve your heirs' immediate and long-term needs. Immediate needs include: funeral expenses, unpaid medical bills, debt and taxes. Having money to pay immediate expenses may give your heirs time to readjust their lives, free from money pressures.

Long-term need for the care of dependents, college expenses and, in general, providing financial resources.