Who needs life insurance?
Loving someone is more than just taking care of them while you’re with them, it sometimes means having to make arrangements for their well-being should anything happen to us.
Life’s hard to predict but you can certainly provide assurance to your loved ones by ensuring that whatever happens, they’ll have a cushion to fall on. That’s how life insurance works.
It ensures that those we leave behind gets a sum of money which will help them tide over this difficult period, as they gradually move on with their lives.
So how does life insurance work?
Life Insurance is a policy that covers us in the event of death. Our nominated or legal beneficiaries are given a lump-sum payment in the unfortunate event of the insured’s death. It typically offers coverage for either a fixed period of time or renewable yearly up to a certain age. The particular term you should choose depends on factors like your age, medical history, current financial status, debt, mortgage, number of dependents and their age, etc.
When do I need Life Insurance?
There’s no minimum age to become insured, however, there are life events which may lead one to consider having it. Here are some events which you may relate to:
- If you are married or getting married
Making a commitment to be together for life is an important promise. To love and care for one another while both shall live. Together spouses share financial responsibilities together. Life insurance provides your loved one with the assurance that should we no longer be around, our spouse will be able to deal with their commitments without difficulty. It also gives the surviving partner, enough to live by should they need some time away to recuperate.
- If you are a new parent
If you are planning to have children or if you already have toddlers, then it is a good time for you and your spouse to get life insurance. It will provide for your kids through young adulthood till their university, up to the time they are ready to be independent.
- If you have a mortgage and debts
There are policies that cover the remaining term and amount of your mortgage but not for other debts such as car loan. Same goes for other debts that you were repaying together. It ensures that your family isn’t left stranded with paying your bills.
- If you are the sole breadwinner
If you are the sole breadwinner in your family, do consider getting life insurance. The policy will help your family tide over daily expenses and other financial commitment while searching for jobs and adjusting to a new lifestyle.
At the end of the day, Life Insurance is but a way to fulfil your responsibilities to your loved ones and looking out for them. Life insurance is not expensive if you consider a more affordable option such as term life insurance which covers only death. Premiums can be fixed or renewable, but peace of mind is priceless.
More tips? We’ve listed down essential pointers about Term Life Insurance, read about it in “The Basics about Life Insurance in 3 Steps”.