As soon as we get a good job, a spouse, maybe children, a house and we are settled in life. The first recommendation from the corporate people, elders and the agents we get is to buy insurance. But, do you really need insurance. What if there are certain reasons because of which it’s a waste of money for you to buy insurance. What if you personally don’t want to but you should in order to take care of your family. Well this article is going to inform you that in what conditions you should take insurance and will help you make a decision.
What is life insurance?
Life insurance is something which takes care of your family after your departure, it can be in bulk or in regular installments, but however, it keeps filling you family’s pockets in order to sustain with comfort. It is like a reassurance that the ones who depend on you would be taken care of after you are no more with them. It depends on you that what type of cover you are buying, also you can decide that the amount supposed to be paid will be paid as a salary to the family or as a rent, debt, or mortgage to a specific person or organization.
Do You Need Insurance?
Well, this question solely depends on how many dependents you have. Suppose you do not have a spouse and children and nobody remains there to depend upon you, and you have ample amount to pay your debts or you are able to pay for your funeral and such rituals, then buying an insurance policy is a waste of money for you.
But, if there is someone who depends on you, such as children who go to school, a spouse who doesn’t make money or the house which you are paying rent, or EMIs, then you need a life insurance policy which can provide the money after your death. If you want your family to have the same luxuries for the coming years as they are doing while you are alive, then you should buy insurance because you cannot rely on the government to pay your family some good amounts that could help them satisfactorily.
It is recommended that the type of insurance you buy, or the amount you choose should be 10 times more than what you earn now, suppose you make 6 lacs per annum right now, then the insurance policy shall range from 50-60 lacs.
How much does it cost?
Dependent on your age and health condition, life insurance can be something very beneficial because it will provide your family a good amount of protection financially and if seen at a lower level, all you need is to pay just few hundreds a day. So the good idea to know about which insurance policy is good is to check around the market, over the net and look about what is covered on the level at which you are paying. The amount that you are supposed to pay depend on many things like, how much money do you want to cover, time of policy, your age, your lifestyle, and also it depends whether you smoke or not. Suppose you have a critical disease and soon enough you are going to die, or let’s say you still have time for some years but surely not until the time till the policy expires, then surely your insurance policy will not cost you much.
What type of Insurance should you buy?
a) Health/Dental Insurance:
This type of insurance is said to be the most important type of insurance to purchase, especially if you have a dependent family. If the company with which you are dealing your insurance provides group insurance, then compare rates with the individual ones and let yourself know which the better one is.
b) Property Insurance (auto, boat, motorcycle, etc…):
If you own a vehicle, you should have insurance for it, surely, you won’t want to get caught without having one, and also many states have series of rules against not having insurance for your vehicles. Apart from that what matters is your own safety, if your car or bike meets with an accident, your insurance on the vehicle can help you lower your cost in rejuvenating it back.
c) Mortgage Insurance/Life Insurance:
If you are the only person who makes money or are the most prominent person for it, then what will happen to your family after your departure, how would they be able to pay for their expenses properly, and if you are paying a mortgage somewhere or you are paying the EMIs, who will be taking care of it? If this is your subject of worrying, then you should consider having life insurance to cover your mortgage loans.
d) Disability Insurance:
If you meet with an unfortunate accident that cripples you for life and that thought worries you, then you could consider short and long-term disability insurance. This type of insurance would pay you on monthly basis while you are disabled to work properly.
e) Long-term Care Insurance:
This type of insurance is generally not bought until an individual is 55+ of age. This type of insurance takes care of your nursing and other services when you are not able to take care of yourself and/or your spouse.
Must Read: 7 Reason Why You Should Buy Insurance
How much life insurance should you buy?
The answer to this question depends on many factors. The factors are:
- Age of the one buying the insurance and his/her spouse’s and/or children’s age.
- Income of the buyer of insurance.
- Your debts and mortgages and EMIs.
- Study, education and extra comfort expenses for your children.
- The last amount that will be spent on you: funeral expenses.
Well, we hope that the information provided to you was helpful enough to let you decide whether you should buy insurance or not, and if you do, then what type or how long shall it be covered to keep your family happy. Think and decide wisely!