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One of the key questions that have been doing the rounds for ages is at the very foundation of a secure future: “Who needs life insurance?” There is much information available these days for you to know that there are tools available to ensure security and peace of mind. However, there are also questions on whether one needs it, and if yes, why!
In simple terms, it becomes a necessity when you have one or more dependants. And the need tends to be even more acute when you are the sole breadwinner of your family and you have Dependants who rely on your income. Salary tends to be the most common source of income for most people. So, what happens when the source of income stops for the family? That is when insurance kicks in, helping families out when the breadwinner is no longer in the picture.
Term life insurance is one of the earliest forms, where the Insured is covered of financial risks for the period of insurance. As long as the insurance Policy is kept active and the premiums paid regularly with no lapses, insurance takes care of the associated risks. Of course, the insured may not get any returns as it is solely meant for Risk protection. However, it does cover your needs and protect your interests for the Term of your policy.
Apart from the general rule that it is necessary for those with dependants, there are instances where it becomes indispensible when people reach specific stages in life. For instance, there are many who would feel the need when they get married; when there are dependants whose interests are to be protected, ensuring that there is no financial risk associated with the uncertainties of life becomes one of the primary concerns of the breadwinner.
The need increases even further with the number of dependants that one may have. As the family grows bigger, the main breadwinner would have so much more to protect – the spouse, sons and daughters, and their future personal and professional lives would be at stake.
The case of older people may be different. While many older people may not feel the need, it is still worth putting some money in there, which would cover expenses in the final stages of life, such as funeral expenses or the costs of burial. Thus, in a broad sense, the answer to the question, “who needs life insurance”, would include anyone with dependants and in different stages of their lives with something at stake. And as always, it always pays to secure one’s future in the early stages of one’s life to benefit from better protection at lower costs.