Life insurance: Why you need it (and why you don’t)
Life insurance isn’t an expense that most people look forward to paying, but it’s usually worth the peace of mind that comes with it. Before you sign up with an insurance provider, though, it’s important to know whether or not your situation requires this type of coverage, as well as how much you should get and how often it makes sense to re-evaluate your needs. Keep reading to find out all the details you need to know about life insurance so you can make a wise decision about whether or not you need coverage and what kind of policy is best for your situation.
Everyone’s situation is different
The decision to purchase life insurance is an important one, but the process of deciding whether or not you should get life insurance is a difficult one. There are many reasons why someone might choose to buy life insurance, and just as many reasons for not purchasing it. Ultimately, the decision comes down to your specific needs and goals. You may want to consider the following factors when making your decision:
1) Financial obligations
2) Income potential
3) Child care expenses
4) The possibility of starting a family in the near future
5) Your current health status
You need life insurance if…
You may not be sure whether or not you should get life insurance, but here are a few reasons that might change your mind. If you’re a parent who is the sole provider for your family, then getting life insurance would be incredibly important to protect your family’s financial stability in the event of your death. If you have dependents, such as an elderly parent living with you and relying on your income, or if someone else depends on the money that comes from your income like someone who is unemployed and relies on any cash they can get from family members – then this is also another reason to consider getting life insurance. Most people think of life insurance as a luxury purchase, when really it’s more of a necessity.
You don’t need life insurance if…
– You’re the primary breadwinner and your spouse isn’t working.
– You have a good pension plan.
– You have a sizable inheritance or trust fund set up for your kids or grandkids.
– Your partner is self-employed and earns significantly more than you do.
The bottom line
The decision to get life insurance should be taken seriously and not made on a whim. The most important thing is to make sure your loved ones are taken care of, so do the research and make sure they’ll have enough money to live off of. If you have dependents, life insurance is absolutely essential. But if you’re single with no children, there are other ways to secure your future that may be less expensive than life insurance premiums.