Why Do People Have Life Insurance? 
People have life insurance so that their survivors are not excessively burdened upon their death . Whether it be from the relatives taking up a collection for the funeral , to a business losing money while trying to replace a key employee , life insurance takes away part of the sting of that loss . It makes the transition to life without that person more bearable , not having to worry about finances in the midst of their grief and the many details at hand . Many people see Life Insurance is a legacy , a sign of caring , that they can leave to their loved ones . And if they do n't see it that way , I worked in a funeral home for a few years , I have seen how their loved ones concur with that sentiment . 