Do I Need Life Insurance?

As the name suggest “Life Insurance” means that the life of an individual is insured financially. In case the insured dies his family and the dependent gets a lump sum amount to cover the loss at least financially. Though it may sound a bit weird but life insurance can help cover your funeral expenses and reduce the burden of your dependents. There are different types of life insurance policies and depending on your liabilities you can choose the one which suits your needs and budget. The first and foremost thing to know when looking for life insurance policy is to know if you really need it.

Life insurance is not needed for children as no one is dependent on them for any kind of income. However, there are instances where children insurance can be a blessing for a few.

  • If you are planning to get married or start a family it is advised to get a life insurance as it will be cheaper now than when your children become older.
  • If you have an established family then also it is advised to get a life insurance and not only for the partner or spouse working outside but also for those working at home as the expenses for home cleaning, taking care of children and doing domestic chores can be significant and may affect the daily budget.
  • For young single adult life insurance can be necessary if they have an elderly parent to support or someone who is dependent on them financially. It may also be necessary for them to cover their funeral expenses.
  • For the working couples who are childless having life insurance coverage can be an important decision as they may not require it. If both the couples earn enough to manage the expenses even if one of the partners dies then life insurance may not be required except if they want it for funeral expenses. However, if they feel they have enough savings to cover their funeral expenses then they may think of forgoing the life insurance coverage.
  • For elderly people buying life insurance policy may not be required other than that for funeral expenses and that also if they do not happen to have savings for the same. However, at this age life insurance may be required if there are some dependents. Getting life insurance at this age can be pretty expensive and one must consult a financial advisor before taking any policy.