The purpose of life insurance is to cover your loved ones should you die prematurely. ie) before you have a chance to accumulate some wealth. So if you have a million dollars in assets and you only need $40,000 a year to live on- you probably don't need life insurance.
Now if you have $5000 in assets and your family would need $40,000 a year to live on should you pass away- YES you need life insurance.
And I totally disagree about not needing life insurance for the kids. If you have zero assets or close to it- get a little rider policy for $5000 to $10,000 just to cover the funeral, medial expenses, and the days off that you'll probably need from work. I've seen families that have had a child die and haven't been able to pay for the funeral- I can't imagine grieving for the loss of my child and figuring out how to pay for their last expenses. For sure get a rider policy until you build up some assets.
at 2:38 PM on Apr. 8, 2011