Is Life Assurance Essential ? Do I need life insurance?
Do I need life insurance?
The simple answer is that you need this kind of insurance if your spouse, children, or other family members depend on you financially. When you’re not around to make most of the money, you need to set up a way for the people you leave behind to keep paying the bills for things like food, childcare, and schooling. Life insurance does that, and it doesn’t take much money out of the family’s monthly budget.
Is Life Assurance Essential ? Do I need life insurance?
No relatives
Even if you don’t have a family, you may still need life insurance. It could be used to keep co-signers from having to pay off any mortgages, student loans, credit card bills, or car loans that you leave them. Life insurance isn’t a must-have for most single men and women. They didn’t really need life insurance until they met someone, got married, and had kids. At that point, their new responsibilities pretty much forced them to get some kind of life insurance.
ife Insurance for a Term
Term life insurance is the most basic way to cover your life. This kind of policy will cover you for a set amount of time at a set rate. It’s the easiest and, most of the time, the cheapest way to protect yourself. You could get a policy that covers you as long as your mortgage is paid or as long as your kids are still young. This policy gives you peace of mind, which is almost as important as the money it will give you if something bad happens.
Work-based life insurance
As a perk of working for them, your boss might offer you life insurance. That’s great, but it doesn’t give enough coverage most of the time. Employer-provided coverage won’t be enough if you’re married with kids or have a big debt like a mortgage. You’ll get about two or three times your salary, which sounds great, but most insurance companies recommend that you get a policy that pays out six to ten times your salary. This coverage ends when you leave the company, but your own policy will always be in effect.
Life Insurance from the US Government
The US government has the biggest life insurance policy in the world, covering four million Americans. Each person is either still working for the government or has retired from it. They depend on this policy because it also covers their families. Two-thirds of the cost of the policy is paid for by the employees’ wages, and the remaining third is paid for by the government. The basic premium for this insurance can be added to with extra premiums, but the employer pays for all the costs of these extra policies.
People who are old
Life insurance isn’t as important when you’re older as it was when you were younger, as long as you’ve paid off your mortgage and don’t have any kids to support. Life insurance for people over 65 pays out enough to cover the cost of a funeral and other costs, so the payout is usually a lot less than it was when the person was working. Underwriters always look at a person’s health when they look at a life insurance policy. Because senior citizens are more likely to have health problems due to their age, there are insurance companies that only make policies for them.
