Enrolled Agent-licensed to practice before the IRS, Samuel N Smith, EA, South Carolina
Not yet but that may be the next "requirement" on the list of surprises that Washington has in store. If you do not have life insurance what type of "burial" do you desire and and how will you pay for that type final disposition upon your death? Do you plan to be cremated, funeral home service, or have the big funeral in the church of your choice? There are "funeral policies" available and in recent years the "final expense" policy has become very popular
President, Lane Independent Agency, Southern California
There is no legal requirement that anyone have life insurance. However there very clearly is a moral, ethical, and loving requirement to have at least some life insurance. Anyone with a spouse, children, loved one, religious or charitable ties, has a responsibility to make sure their family is provided for in their absence. How would your spouse survive without your income or assistance? How could they pay someone to provide what services you provide and care for the children? How would the mortgage be paid? I can help assist you in your planning and provide you with a series of alternatives, for you to select the one you can comfortably afford and be secure with.
No, life insurance is not required by law. Sometimes a court will order that life insurance be purchased as part of a divorce settlement, and some lenders require the purchase of life insurance as collateral for a loan. But there is no federal or state requirement that people buy life insurance, at this time.
There is no law that requires a US citizen to purchase life insurance like the new ACA law that requires all US citizens purchase health insurance, There are situations where life insurance can be required such as court ordered due to a divorce or child custody case or even adoptions. Also lenders such as mortgage companies can require a person to purchase life insurance to secure a large debt.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Here is the legal angle:
Life insurance is not required by federal or state law.
The government leaves it up to the citizenry to take care of our families, business, and charities.
Good thing. We don’t need more regulation or taxation.
However:
Life insurance is required by some legal contracts.
Lenders may make a policy mandatory before closing on a business loan.
Investors may call for a policy before injecting money into a business.
Divorce decrees typically do obligate the participants to carry coverage.
An additional point:
I personally believe that life insurance is a moral obligation.
You have a spouse and children financially dependent on you.
You have the employees of your business dependent on you.
If you have made a commitment to certain causes, you have those communal and social organizations dependent on you.
Why let them down?
Life insurance lets the show go on for these folks.
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Life insurance is not required by federal or state law.
The government leaves it up to the citizenry to take care of our families, business, and charities.
Good thing. We don’t need more regulation or taxation.
However:
Life insurance is required by some legal contracts.
Lenders may make a policy mandatory before closing on a business loan.
Investors may call for a policy before injecting money into a business.
Divorce decrees typically do obligate the participants to carry coverage.
An additional point:
I personally believe that life insurance is a moral obligation.
You have a spouse and children financially dependent on you.
You have the employees of your business dependent on you.
If you have made a commitment to certain causes, you have those communal and social organizations dependent on you.
Why let them down?
Life insurance lets the show go on for these folks.