Life insurance serves as protection if the insured dies. For example, if I were the insured of a life insurance product and die tomorrow, then the insurance company will provide insurance money to people that I left. The purpose of taking life insurance is to cover the potential loss of revenue. If I as the backbone of the family died, my family left behind will lose their source of income. If I had a life insurance program, the family I leave behind will get a sum assured that can be used as a substitute for the lost revenue, at least temporarily.
- Do not buy life insurance if not required, and
- If you need life insurance, buy life insurance that provides adequate protection.
Do not buy life insurance if not required
Key factors to buy life insurance is dependent and liabilities (eg debt). If someone does not have both so concerned not need life insurance. Small children (or even newborn) do not need life insurance protection because it does not have a dependent. If the child dies, the family will grieve, but will not adversely affect the financial condition of the family. Instead, the family finances would improve because the number of dependents decreases. Buy child life insurance at this stage will only give free money to the insurance company.
People who already have income also may not need life insurance if she / he does not have dependents and do not have obligations. People with no dependents and have no liability to third parties do not need life insurance protection because if the event of death, no one feels lost revenue. If the person is above taking credit, especially consumer-credit-it is now in question already has an obligation. Thus it is time the concerned to take life insurance (if credit is not equipped with credit insurance). If not, then he has the potential to incriminate relatives-kin if something bad happened to him.
Parents of all children are independent and no longer have obligations to other parties also do not need life insurance. If the event of death, her children will grieve, but no one will ever feel financially disadvantaged. In addition, if the parents are managing their funds properly, then it should be in question already has a savings or investment returns that value is far greater than the sum of life insurance. If parents already have enough savings, he could just cancel his life insurance before the time if it feels the insurance coverage is not proportional to the amount of their savings. If he dies before the children independently, her children will still be getting a legacy in the form of such deposit.
If you already have no dependents and no longer in productive age, elderly people need is not a life insurance, but large amounts of liquid funds. Furthermore, under these conditions required the product is exactly the opposite of life insurance, namely annuities. If life insurance provides protection if the insured dies too soon, annuities are used to provide protection if the insured is living too long. Pay life insurance premiums at this time could be a "financial disaster" because it takes precisely the product which is the opposite of life insurance.
I believe that its important to be financially secure and stable. That is why I found Term Life Insurance Quotes that fit my budget.
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