Which of the following households most likely has the greatest need for life insurance?

Asked by: Cyril Willms  |  Last update: November 14, 2022
Score: 4.8/5 (10 votes)

Which of the following households most likely has the greatest need for life insurance? Household with children. Judy and James have a 4-year-old child.

Why do most people need life insurance?

Why is life insurance important? Buying life insurance protects your spouse and children from the potentially devastating financial losses that could result if something happened to you. It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses.

Who should have a life insurance policy?

Ownership by you or your spouse generally works best when your combined assets, including insurance, won't place either of your estates into a taxable situation. 2. Your children. Ownership by your children works best when your primary goal is to pass wealth to them.

What is the most common life insurance?

Whole Life

Whole life insurance is the most common type of permanent insurance policy. In addition to providing cash benefits to your beneficiaries upon your death, the coverage comes with guaranteed cash value during the life of the policy.

Who needs no life insurance?

If you're a single person with no dependents, you probably don't need life insurance — at least not yet. Financial experts recommend life insurance particularly for people who financially support either a spouse, children, or other relatives. That means people other than themselves rely on their income to live.


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Who buys life insurance the most?

More than 8 in 10 families in the United States have some form of life insurance coverage today. Most people who own life insurance are family breadwinners who want to make sure that in the event they die, the future financial needs of dependents, such as a spouse, children or elderly parents, are met.

Who is most likely to buy life insurance?


of American households say they are likely to buy life insurance in the next 12 months. This is most likely among people under age 45 and/or married couples with children. Men continue to be more likely to own life insurance at 62 percent, compared with 56 percent of women.

Why would a single person need life insurance?

You have debt.

Not saddling others with debt is a major reason why single people need life insurance. This is typically the case when there's a cosigner on your loan or when you share a mortgage with a friend, relative or someone else. Private student loans can be especially burdensome to your cosigners.

Which of the following is the most common type of life insurance policy offered by companies?

Whole life insurance policies are permanent, have higher premiums and death benefits, and constitute the most popular type of life insurance.

What type of life insurance is most commonly used for group plans?

Term insurance is the most common form of group life insurance. Group term life is typically provided in the form of yearly renewable term insurance. When group term insurance is provided through your employer, the employer usually pays for most (and in some cases all) of the premiums.

What are the 3 main types of life insurance?

Whole life insurance, universal life insurance, and term life insurance are three main types of life insurance.

Do companies have life insurance on employees?

Key Takeaways

Corporate ownership of life insurance (COLI) refers to insurance obtained and owned by a company on its employees, typically senior-level executives. Companies pay the premiums and receive the death benefit if the employee dies. The insured employee's heirs or family do not receive any benefits.

Do you need life insurance if you live alone?

If you have no people who rely on you and your income, then there is obviously less direct need to take out a life insurance policy. However, this does not mean that there is no need altogether. One of the main reasons for purchasing life insurance is that it can help to protect your assets, and particularly your home.

Do I need life insurance if im single no kids?

Answer: Single people with no children often don't need life insurance because no one is relying on their income.

Does everyone have life insurance?

Life insurance is not for everyone, but some individuals and circumstances make having life insurance a smart idea. If an individual has accumulated enough wealth to take care of their family upon their passing, then life insurance may not be necessary.

What percentage of parents have life insurance?

This explains why many families in 2020 invested in stocks for financial preparedness. In fact, more than 17 percent of parents bought life insurance coverage for their spouse and families, according to a recent survey by Policy genius.

What percentage of households have no life insurance?

How many people do not have life insurance? Statistics from finder show that around 8.5 million people, over the age of 18, do not have any life insurance in place at the moment. This included around 19% of people that previously had life insurance, but no longer do.

How many families have no life insurance?

In 2020, 54% of Americans are insured, down from 57% in 2019, with 1 in 3 families remaining uninsured.

Do most companies offer life insurance?

Employer-provided insurance, or group life, is a policy you can buy through your workplace. Company-paid group life insurance is the most common type of insurance benefit, according to an industry study, with 85% of companies offering it to their workers.

Why do employers provide life insurance?

Life insurance can boost security and peace of mind for employees. Financial security is associated with higher productivity on the job. The Consumer Financial Protection Bureau has found that when employees have to spend time and energy worrying about providing for their families, they're less productive.

What is an employee life insurance?

Key employee life insurance is a life insurance policy that insures the life of an employee whose death would cause significant economic loss to a business. Under this kind of life insurance policy, you purchase an insurance policy on the life of an employee.

What is the type of life insurance?

a) Whole life insurance covers your life for a longer period, i.e., 99 or 100 years. On the other hand, a term life insurance policy will expire without a maturity benefit, and never acquires a cash value. Thus, term insurance premiums are always lower than any other life insurance plan.

What are the four types of insurance that most people need?

Nevertheless, there are four types of insurance that most financial experts recommend everybody have: life, health, auto, and long-term disability.
  • Life Insurance. Life insurance provides for your family if you unexpectedly die. ...
  • Health Insurance. ...
  • Long-Term Disability Coverage. ...
  • Auto Insurance.