Life Insurance, Do I Really Need It?
Among all the bills that you have to pay, why would you want to add one more to the pile? Yet, life insurance could be one of those necessary expenses. You may regret not getting it if you truly need it.
You may ask yourself, "So how do I know when to get life insurance?' Below I've included some of the most likely life scenarios. The situations presented are straightforward, and may not take into account a variety of factors which could indicate the need for insurance.
That said, in simple situations, the need for life insurance will largely depend upon which of the following categories you fall in.
Single and Childless Since life insurance largely focuses on the needs of dependents, if you have nobody to support, you can count yourself lucky, at least in the financial sense. While your death may result in emotional suffering for relatives, there will be no dependents that will suffer materially in the aftermath. Acquiring insurance at this time is not a smart investment.
You may think getting insurance is an intelligent choice because insurance companies offer lower rates to young and healthy individuals. By not acting quickly, you can miss out on locking in these low rates. However the money you spend on the low-rate policy over a lifetime will more than likely be greater than if you had waited to get a higher-rate policy later. The savings now could be used more wisely in another investment. For those not supporting anyone, skip the insurance.
Married, but Childless This kind of situation can be variable. It comes down to how much one person is dependent upon the other. If both spouses have steady jobs, it would probably be a better idea to hold off on the life insurance. If one dies, although the partner may be emotionally devastated, they still should be able to support themselves without the need for insurance.
Should only one have a job, it would be beneficial to purchase life insurance. Upon the death of the breadwinner, the dependent spouse could easily fall into financial problems. This can be variable still. If the surviving spouse is young, he or she may still be able to take on a job when their significant other passes away. It's not something to be assumed, however, and you should make sure to talk this over with your loved one.
Married, with Children In almost all cases, life insurance is a must for married couples that have children. Children are obviously the most dependent people, and a death can impact their well being tremendously. Even if the living spouse does have a job, their financial situation will still probably not be good enough to support themselves and the children. The income for the remaining spouse would have to be quite high to ensure a stable financial life. In most cases, it pays to be more cautious and just get the life insurance.
Single, with Children This is a no-brainer. The death of a single parent could leave children stranded. Be responsible and invest in insurance.
Hopefully these scenarios will help you take a step in deciding whether or not to purchase life insurance. Of course, these examples are not exhaustive, and they should not be taken as set rules. If you're looking into life insurance, you should do more research.
A helpful question could simply be to ask yourself, "Is anyone dependent on my income?' If so, there is probably a need to seriously think about coughing up the extra cash each month and ensuring the security of your dependents.
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