Life Insurance – Do You Need It or Not?

Some insurance policies are mandatory like insurances for health and car, but some are optional such as life insurance or life coverage. If you do not have life insurance yet, that is a good thing because you need to learn first whether you need it or not, as paying for insurance you do not need is a total waste of money. Also you need to make sure what ails you is not something psychological, because in that case what you need is something like an online psychologists such as the ones from BetterHelp rather than insurance.


What is Life Insurance?

Life insurance provides lump sum or regular payments for dependents the moment the insured dies or becomes unable to work. Some life insurance plans also provides emergency fund for critical illnesses, the amount provided may or may not be deductible from the assured amount of lump sum provision upon death.

There are two general types of life insurance: term life (run for a fixed period and only pays out when you die) and whole life (pays out after certain period whether you die or not). A trusted agent must help you understand the various policies before letting you buy any.

Who Needs It?

Life insurance is not for everyone, but it is necessary and a lifesaver for if your family (spouse and kids) entirely depend on you as sole breadwinner. Life coverage is also a great option for those who do not have much savings and investments, and any accident or disability could cripple the family’s income.

If you are an employee, earning moderate income and any untoward event could potentially end your ability to work (source of income), having life coverage while still healthy and young is beneficial because as you grow older or sicker, premiums become more expensive.


Who Does Not?

If you have stashed a considerable amount of money to provide for you and your family’s needs until such time the kids have graduated or your spouse has become financially independent, then life insurance is unnecessary.

If you are a business owner with stable and massive earnings, you may not pay for life insurance premiums, but put your money where it can grow more – in your business ventures. As a financial successful entrepreneur, however, you may buy another form of coverage for events that affect business operations like disasters and emergencies.

If you are still undecided, talk to a financial expert or an agent friend. More often than not, you are a good candidate for having life insurance. Always ask for a clear understanding of the policy the agent is proposing to know if it suits your needs and ability to pay.