Is Life Insurance Necessary? | EfPrime Finance
Is Life Insurance Necessary? | EfPrime Finance
You will need to know the answer to these questions before you decide if life insurance suits your needs.
Many factors go into the decision of whether or not you
should get life insurance. In this post we'll cover some of the key reasons why
you should consider buying it and some of the reasons why you may want to skip
it.
Do I Need Life Insurance?
There are a wide variety of reasons why you may need life insurance. These include:
- To cover financial obligations such as paying off your mortgage, supporting your children's education, etc. or to create an estate for your beneficiaries in the event that you die prematurely or unexpectedly.
- To cover final expenses like a funeral, medical bills, and related expenses. Most people don’t want to leave this burden on their family after they pass away.
- So they can stay true to their commitments—to pay off a loan, support their family financially, or simply make the purchase of an expensive item that they would have otherwise purchased with their savings.
- To support yourself
and your family, you’ll need the money that life insurance provides. The
average family size today is about 2.4 people, so if either spouse dies, it is
likely that the family will need the help of both spouses to support themselves.
- To supplant the benefit that Philhealth, Social Security System (SSS) and other government agencies provide.
If you ever concern yourself with any of the above enumerations, then, life insurance is necessary for you and your dependents.
Life Insurance is a critical consideration for people
with major financial obligations. Whether it’s a mortgage, school tuition, or
even just basic living expenses--life insurance can play a critical role in
securing your family’s future. But that doesn’t mean that everyone needs life
insurance.
Consequently, if no one depends on you financially, you might not need life insurance anymore. However, I bet you will still need insurance that caters to critical illnesses, accidents, and hospitalization as we are human and not immortals. These events will somewhat drain your savings and will negatively affect your standard of living.
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Disclaimer
The Author is advising readers to consult with your respective Financial Advisors before venturing in any investments. Investing your money is dependent to your goals and your risk tolerance. You should know the risks and rewards of investing before you actually do the same. The illustrations above are for educational purposes only and any risks or losses that you may incur are imputable to your respective decisions.
The author does not in any way provide a guaranty as to the effectiveness and quality of the products and services that are featured in this blog. The products and services were advertised based on personal experience and product and service reviews that the product/service received.
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