I am a 21 year old single man. Do I need life insurance?
Young, single people may not have spouses and children to look after and so may not think they require life insurance. However many youngsters have dependent parents and also have education loans to pay off. So if you find yourself at such a juncture, it would be wise to buy a term life insurance. This kind of life insurance is inexpensive and effective. So even if you die, your parents won't have to spend their life's earning to pay off your loan. Also, you may want to get married and have kids sometime soon. Buying a life insurance policy now would be a good time as you would get it at a lower rate and can continue with it even after you have a family of your own.
I am a retired widower and my son has a successful business. Do I need life insurance?
Life insurance needs change as you age. So if you do not have a spouse to support and your children are already established, you need not continue with your life insurance policy. Make sure you have a good health plan in place.
I have recently inherited a large sum of money. Do I need life insurance?
First and foremost you need to calculate your needs. What are the financial responsibilities you have? Do you have a loan to repay? Do and have children who need college education in the years to come? Do you have parents to support? Once you calculate the total amount of money you need to cover these liabilities, valuate the result against the amount of inheritance you received. If the amount exceeds the liabilities, you can safely discontinue or decrease your life insurance coverage. If however you feel the inheritance money won't be sufficient, keep your policy intact.
Just like you do not need motor insurance if you don't own a vehicle, you do not need life insurance if you do not have liabilities. So if at any stage in life you find yourself free of liabilities or have amassed enough wealth to cover them, you may find yourself not needing life insurance coverage. However, analyze the needs very carefully. Think of the expenses that may crop up in the future. Only if you are confident of paying them off smoothly, think of letting your life insurance go.
Otherwise, to be safe, get a term insurance policy even if you feel your wealth is sufficient. It is inexpensive and will keep you covered against any unforeseen happening.
For more articles by Deepak Yohannan, please visit MyInsuranceClub.com
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