Do I Need Life Insurance?
Do you think you do not need a life insurance. Here’s why you may want to rethink.
Imagine you are the breadwinner in your family and suddenly you were to be taken away from them. Your income flow to the family will freeze.
Would your savings be sufficient to take care of your family’s needs from then on?
Life insurance is a tool that can reduce that risk. It replaces your income in the event of your not being there to take care of your family.
Therefore, the most common reason to buy life insurance is to provide your family for the sudden loss of your income. The proceeds from a life insurance policy could be used to support the financial need of your family members.
So, yes, you need life insurance. The only factor that you need to consider is how much life insurance you need.
Now that are aware of the need to be insured, buy an insurance policy as soon as possible. The logic of calculating life insurance premium is simple – the younger you are, the lower the premium you will have to pay. Another aspect you will need to consider: the younger you are the higher insurance cover you will need to make up for the productive years lost in the event of your passing away.
Yet another point to consider is the term of your life insurance i.e. the period for which you intend to insure your life. Here too, the younger you are the longer you need to provide for adequate risk cover benefit for your family. Even if you are 40 years old and not yet insured, the insurance plan you choose needs to be for the long term – at least 20 years, assuming conservatively that you will provide your family with your income till the age of 60. Thus, for the duration of your future productivity, you have ensured your family’s financial welfare even if you were to pass on at any time during that period.