Who Need Insurance of Life?
Have you ever received an offer to buy a life insurance policy from an insurance agent? 99% of the people I asked ever received a similar offer. However, unfortunately there are still many people who refuse to buy a policy or have a policy that Sum Insured under the needs (underinsured).
Hard fact: We buy a product that we hope never to wear.
The end result, more than 50% decided not to have a life insurance policy. Sounds familiar? Actually anyone who needs life insurance?
Life Insurance is an insurance policy that pays the benefit of death to the beneficiaries if the insured dies. This product is established to provide protection to your financial dependent family.
If you experience death or permanent disability that leads to loss of income, life insurance policies can help to cover some, if not all, of your income. However, of course how the policy can help depends on the type of protection you buy.
That's why buying a life insurance policy is like buying a product that we hope never to wear. Because of course we hope the death does not happen and it is very taboo to estimate when the death will come.
Do I need to buy a policy?
Life insurance needs are highly dependent on the individual situation. For many people, life insurance becomes a very important part of financial planning.
If you are married or have a person who becomes your dependents, then almost certainly you need to buy a policy. Especially when your income is very significant and is used to support the cost of daily living, paying credits or regular bills, and paying tuition.
If you do not have dependents or your income is not so significant contribution to the family finances, you may not need to buy a policy.
Alright , now let's take a look at the following guidelines to find out if you really need to buy a life insurance policy.
Single young age
If you currently regularly provide assistance to parents or other families, then you need a policy to protect the people closest to whom you want to still get the help. In addition, you also need protection to cover medical expenses if you are exposed to serious illnesses before death, funeral expenses, or if you still have delinquent credit and other debts. If you feel you do not need to continue the routine help given to the family, then you do not need to buy a policy.
You must buy a policy now especially if you plan to have a child. The current premium cost of course is still cheaper than if you just bought the policy a few more years.
Family young and established
If you have dependents that depend heavily on your income, then you must buy the policy. You certainly do not want families to be displaced in the event of loss of income from major contributors. The amount of sum insured you have to pay depends on the estimated cost of living the dependents left behind. In addition, the income of the couple is also very decisive.
Couples work without children
You should discuss with your partner whether each is comfortable with own income when someday left by the couple. If each partner has an equal contribution to family finances, then chances are you do not need to buy a policy. Because if your spouse dies, the cost of your life is reduced by the same amount. However, if one partner has a larger contribution and wants to leave his partner later with established finances, then you need to buy a policy.
Family of retirement age
If your children are independent and have been able to support their own lives and no one else is a dependent, then at this stage you do not need to buy a new policy. However, if you still have dependents, then you should consider the advantages and disadvantages of buying a new policy. The premium cost in the 50s will be quite expensive. Thus, you need to consider whether you have any assets that can be sold by an abandoned family without affecting the current conditions. For example you have 2 plots of land and 1 house that is not occupied for life, then this treasure will later become a kind of surrogate sum insured from the policy.
So now I hope you can find out if you need to buy a life insurance policy. However, the thing to remember is that paying a premium is a secondary requirement after primary primary living costs such as meals, utility costs, and other key costs. So, never buy an insurance policy if you have not been able to do it.
Where do you find out if you can afford it or not? Try doing a financial check-up using the Cash Flow Table in Let's Plan planning tools and discuss this with your financial consultant.