Life insurance is important if you have dependents or loved ones who rely on your income. It provides financial protection to your family in the event of your untimely death, ensuring that they can continue to meet their financial obligations, cover living expenses, pay off debts, and achieve long-term goals.

The amount of life insurance coverage you need depends on factors such as your income, financial obligations, outstanding debts, future expenses (e.g., education costs), and your family’s lifestyle. A general rule of thumb is to have coverage that is at least 5-10 times your annual income, but it’s best to assess your specific needs and consult with a financial advisor.

Term life insurance provides coverage for a specific term, such as 10, 20, or 30 years. It is generally more affordable and focuses solely on providing a death benefit. Whole life insurance, on the other hand, offers coverage for the entire lifetime of the insured person and includes a cash value component that grows over time.