Life insurance can be a bit confusing at times and while it can be extremely beneficial, there are times that you probably don’t need it at all. However, this is always based on the individual and their own circumstances.
In today’s blog The Cheapest Life Insurance takes a look at reasons you do and don’t need life insurance.
Life insurance can be really important for your family when things go wrong. However, if you’ve got a considerable number of assets and little debt, then it’s probably not so important to have at all. Equally perhaps if your children are older you may not need to pay out for a policy because you’ve no mortgage anyway.
What you do is buy life insurance to protect you and your family with cover when you need it. This may be when your children are very young or if you’ve got a mortgage to consider.
This is because life insurance can be important in replacing future income of you or your partner should they no longer be around anymore, so it’s more a question of working out your value and of course what kind of debts you have to consider.
Remember, debts are not written off upon death. They are passed down to your spouse or family, which can mean additional stress when there’s nothing to cover the payments.
When you need insurance
If you have a family to support and you’re a breadwinner then it can be a good idea to have life insurance as a back-up. That way, if you pass away your family will be able to continue to live as they have done, because your future income has been covered in a policy.
When you don’t need life insurance
If you’ve got no debts or are indeed asset rich, then life insurance is probably not something you want to pay for – unless of course you want to or perhaps you want to leave some kind of pay out to your grandchildren.
Whatever situation you’re in it’s important to seek out independent financial advice before taking out a policy or indeed cancelling one because you don’t think you need it anymore.