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In exchange for a monthly fee, the insurer pays out money after you die. This payment goes to the people you choose as beneficiaries. It can be an important safety net if anyone depends on you financially.
In general, people need life insurance if their death would place a financial burden on others. Examples include breadwinners, parents, homeowners, business owners and people with co-signed debt.
Ten times your annual income is a common estimate, but rules like this are not universal and may not reflect your specific situation. Take into account your current finances and future obligations, such as income, debts and daily expenses, when calculating your coverage needs.
When applying for a life insurance policy, you'll likely need to provide information about your health and may have to complete an in-person examination. You may also be required to submit details on your lifestyle, hobbies, beneficiaries and family's medical history.